New research from Hawker Beechcraft suggests demand for aviation finance in Asia
Hawker Beechcraft and Corporate Jet Investor research suggests that there may be strong growth in demand for business aviation finance across Asia in the next five years.
New research from Hawker Beechcraft and Corporate Jet Investor suggests that there may be strong growth in demand for business aviation finance across Asia throughout the next five years.
Research amongst business aviation experts reveals that 24.1 percent anticipate demand for business aviation finance in Asia outside of India and China to increase dramatically between now and 2017. Overall, 82.7 percent expect demand to increase over the five-year period.
Demand is expected to grow the most in China, where 63.6% of experts anticipant a dramatic increase in demand, followed by Brazil and India, where the corresponding figures are 46.9 percent and 26.7 percent respectively. In Western Europe, demand is expected to remain relatively flat.
“In these difficult economic times, the benefits of business aviation are becoming clearer, which helps explain why our research suggests that demand for aviation finance will remain relatively strong in developed markets,” said Sean McGeough, HBC president, Asia Pacific, Europe, Middle East and Africa. “However, demand in emerging markets is anticipated to increase dramatically as these economies continue to develop. It is here, and especially in Asia, that we see the biggest potential for increased sales of anywhere in the world.”
In terms of the breakdown of aviation finance to different client types, the research reveals that experts in this market expect 27.1 percent to go to high net worth individuals; 25.6 percent to corporates; 24.8 percent to aircraft and helicopter operators and 22.6 percent to fractional ownership companies.
“The business jet market has shifted from a mainly US industry to a truly global market,” said Alasdair Whyte, editor of Corporate Jet Investor. “Business jet financiers have responded to this shift and are supporting new aircraft and pre-owned aircraft sales worldwide. Historically more than 70 percent of business jets are financed so aircraft financiers are a key part of the business aviation market.”
