Demand for business aircraft finance set to increase

Only 6% anticipate a fall in demand between now and 2022. The findings were revealed in research among business aviation professionals commissioned by Global Jet Capital, a global leader in financial solutions for corporate aircraft.

The main reason identified for the growing demand for finance is that there is a growing trend for potential buyers to use less of their own capital, a fact cited by 62% of the professionals interviewed.  Two in five (40%) respondents said the overall level of sales of business aircraft will grow resulting in increased demand for finance.

21% also pointed to the fact that operating leases are currently very attractively priced.

Key findings include:

57% of the business aviation professionals think the overall amount of finance made available to this market will increase in the coming year.  25% said this was because more specialist lenders have recently come into the market, while 34% expect to see more specialist lenders entering the sector in the future.  33% think traditional lenders will want to increase their exposure to the business aviation market.

32% of those interviewed believe that the growing size of the business aviation market over the next twelve months will naturally lead to an increase in the amount of finance available.

51% of the study’s respondents think that finance rates will increase between now and 2020.  Only 21% believe they will stay the same as today, while 18% think they will decrease.