Global Jet Capital expects demand for operating leases for corporate jets to increase

Global Jet Capital expects demand for operating leases for the purchase of mid to heavy private jets to become increasingly popular in Asia over the next three years.

Compared to other corporate jet markets, a smaller percentage of business aircraft purchases in Asia involve leases. However, in the past few months Global Jet Capital has seen an increase in enquiries from the region, and it believes this is primarily down to the growing interest in operating leases.

“The purchase prices of mid to large private jets are in the mid to high eight figures, and this can have a significant impact on a prospective owner’s balance sheet, their available working capital and lines of credit with existing lenders.”

Violet Kwek, sales director, Greater China and North Asia at Global Jet Capital said: “The purchase prices of mid to large private jets are in the mid to high eight figures, and this can have a significant impact on a prospective owner’s balance sheet, their available working capital and lines of credit with existing lenders.”

“In addition to this, the time frames for both planning and ownership of larger aircraft are often significantly longer than for smaller ones and owners therefore need to understand where the majority of the financial risk falls. Operating leases allow the owner to assume less of the risk of the asset and buyers in Asia are waking up to the benefits of these schemes fast,” added Kwek.