New study reveals lack of finance led to decline in jet deliveries
A new research from US-based Global Jet Capital has showed that a lack of business aviation finance has led to a drop in the rate of jet deliveries worldwide.
Conducted by Corporate Jet Investor on behalf of Global Jet Capital, the research has revealed that 16% of business aviation professionals believe that a lack of business aviation finance has contributed to this decline.
Around 41% of the participants believe that low business aviation financing has a slight negative impact on jet deliveries, while only 36% believe it has had no influence.
A total of 200 business aviation professionals were involved in the research.
Data provided by General Aviation Manufacturers Association (GAMA) has also showed that the number of business jets being delivered globally slumped by 4.7% in the first quarter of this year when compared to the same period last year.
Global Jet Capital chief operating officer Dave Labrozzi said: “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.
“Some 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 $1bn to lend and with a positive long-term outlook for the business aviation market, we are optimistic for the future.”
The new study also showed that 51% of the participating business aviation professionals expect an increase of finance for the sector between now and 2019, while 8% has predicted the increase to be dramatic.
Around 21% participants are of the belief that the level of funding to buy business aircraft will drop over the period, with 23% believing that it will remain at current levels until 2019.