According to new research from Global Jet Capital, 16% of business aviation professionals believe a lack of business aviation finance has contributed to a decline in deliveries. In addition, 41% believe it has at least had a slightly negative impact, while 36% believe it has had no influence.
For reference, in Q1/16, global business jet deliveries fell by 4.7% when compared to Q1/15.
“A lack of available finance for those looking to buy mid to heavy business jets was one of the main reasons we entered this market,” said Dave Labrozzi, chief operating officer of Global Jet Capital. “Of the traditional lenders were not in a position to meet demand, despite many of the requests for finance being attractive for lenders. We have over $1 billion to lend and with a positive long term outlook for the business aviation market, we are optimistic for the future.”
Keeping with Labrozzi’s confidence, Global Jet Capital’s research, which is based on the views of 200 business aviation professionals, reveals that 51% expect the availability of finance for the sector to increase between now and 2019, with 8% predicting the increase to be dramatic. Just 21% expect the level of funding to purchase business aircraft to fall over the period, with 23% believing that it will remain at current levels until 2019.
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