Data: Helicopter and business jet export credit deal survey

Helicopters and business jets worth well over $1 billion have been financed by export credit agencies like the Export-Import Bank of the US, Export Development Canada and BNDES.

Our data lists every deal since January 2009 with borrowers including Flight Options, Lider Aviaco, Aerolineas Ejectutivas, Cessna Finance, VistaJet, L&T Aviation, Bell Helicopter and others.

The Export-Import Bank of the United States (Ex-Im) has been financing business jet and helicopter exports for over 10 years. However, it has just been a very small part of the bank’s lending particularly compared with commercial aircraft support.

One of the problems for business jet and helicopter borrowers and export credit agencies is the smaller deal size typically associated with these deals. It takes a similar amount of time to structure a $10 million helicopter deal as it does to finance a $200 million aircraft for an airline.

US Ex-Im is keen to increase its support in this market. In 2009, business jet manufacturers went to Washington to encourage it to lend and the rise in guarantees from 2008 to 2010 reflects this (and the 2011 figures only run to mid-July).

Export credit guarantees for business jets and helicopters 2007-mid 2011

The UK’s ECGD – which could support both Hawker Beechcraft and Bombardier products – and France’s Coface – which could support Dassault – have not been particularly active in this market.

Brazil’s Banco Nacional de Desenvolvimento Econômico e Social (BNDES) is also keen to support Embraer. It closed its first business jet deal in 2010 and provided $167 million for Flight Options in 2011.

Export credit guarantees for business jets and helicopters 2002-mid 2011

Source: Corporate Jet Investor

Op = business jet or helicopter operator, including air taxi and fractional
Man = engine or aircraft manufacturer
Maint = maintenance or interiors company
Gov = government borrower