MARKET INSIGHT
In safe hands
The private jet market can seem a crowded and confusing place. Shawn Vick, chief executive of Global Jet Capital, provides some much needed clarity on business aviation
In simple terms the quality of the clients, the quality of the assets, a recognition that the space was underserved by true industry experts, and our collective passion for business aviation. The clients and owners of these aircraft are
You have a long history in business aviation, so can you tell me a little more about the market in general? Business aviation has experienced a steady growth path going back to the original Learjet in the 1960s. Heading into the 2000s, the massive explosion of global wealth drove demand, new product development and aircraft production as new programmes like fractional ownership provided access to business jets at lower price points. These dynamics spurred a significant overproduction of aircraft that, following the great recession, resulted in a true buyers’ market as residual values fell precipitously. Today, following several years of collective
growth in the developed economies around the globe, demand is again on the rise but the balance with supply is much healthier. That balance is driven by prudent decisions taken by the original equipment manufacturers (OEMs), such as Bombardier, Dassault, Embraer, Gulfstream, and Textron, to reduce their production rates in tighter alignment with demand.
Can you share a little bit about the Global Jet Capital concept; what attracted you and the investors to business jet financing?
28
CAMPDENFB.COM
WE HAVE A RICH PEDIGREE AND PASSION FOR BUSINESS AVIATION THAT POSITIONS US TO DELIVER BESPOKE SOLUTIONS THAT MEET OUR CLIENTS’ UNIQUE NEEDS
a global collective of successful entrepreneurs and business leaders. A typical business jet will have three to five owners during its lifecycle. This means we can underwrite credit to very high-quality clients, and then when their term with that aircraft is done, as is the case with an operating lease, we take this high-quality asset, and we redeploy it into another lease or loan. Historically, this space has been served
by banks—who in many cases will finance an aircraft as part of a broader client relationship. The synergies are obvious, but these are unique assets operating in a unique market. Our clients are typically looking for more than just access to capital. They are looking for expertise that will assist them in accessing an aircraft while protecting capital, reducing residual value risk, and maintaining the flexibility to quickly and easily upgrade without having to deal with the vagaries of spot-market conditions. Lastly, we have a rich pedigree and passion
for business aviation that positions us to deliver bespoke solutions that meet our clients’ unique needs.
There are different ways to own and finance business jets, can you tell me more about the different options and associated pros and cons? Today a wide variety of solutions for private aircraft transportation exist, but I think it’s easiest to consider three categories: charter, fractional ownership, and whole ownership.
ISSUE 75 | 2019
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100
