Middle East opting for larger business aircraft

New analysis from Global Jet Capital, a global provider of financing solutions for corporate aircraft, reveals that 69.4% of business aircraft in the Middle East are medium sized to large jets.  This is more than three times the figure for the global fleet, of which 18.4% are in that size bracket.

While the Middle East accounts for just 1.9% of the world’s business aircraft, 7.4% of all medium sized to large jets around the globe are based in the region.

Over the past five years, 127 new mid-sized to large business aircraft have been delivered to the Middle East, with the UAE receiving the greatest number with 32 aircraft, followed by Turkey and Saudi Arabia. 

Business aviation in the region was the subject of a recent event which saw 150 senior business aviation professionals from across the Middle East come together to discuss the future of the sector.

Simon Davies, Vice President Sales, Middle East and India for Global Jet Capital, spoke at the Corporate Jet Investor Dubai event and examined the issue of aircraft financing.  He said: “The Middle East business aviation market is heavily weighted towards larger aircraft with typical purchase prices ranging from US$25-75million.  Up to 80% of this will be sourced through external financing and as these types of aircraft are our specialism we are seeing an increasing number of enquiries from clients in the region.

Global Jet Capital has over $1 billion to lend to clients purchasing business jets and says the bulk of these purchases will be based on leases and loans.  The company currently finances over 300 business aircraft for clients. 

Global Jet Capital launched in 2014 and it is capitalized by three global investment firms – GSO Capital Partners, a Blackstone company in partnership with Franklin Square Capital Partners*; The Carlyle Group; and AE Industrial Partners. In January 2016 Global Jet Capital completed the purchase of GE’s corporate aircraft lease and loan book in the Americas. 

The company’s current management team and executive committee is composed of leaders from business jet manufacturers, maintenance and service providers and leading financial institutions who have served the private aircraft industry for a combined 200-plus years and have completed over 3,500 aircraft transactions.