Research reveals value of large jet deliveries to Europe

Terry Spruce
By Terry Spruce May 25, 2016 11:24

Research reveals value of large jet deliveries to Europe

New research from Global Jet Capital reveals that 709 mid to heavy private jets were delivered to Europe between 2011 and 2015. These aircraft have a combined value estimated at over $35.4 billion.

The company said these aircraft typically cost between $25 million and $75 million each, and up to 80% of the funding used to purchase these is sourced through external financing.

While overall deliveries of business jets to Europe are down 35%, when comparing the five-year time periods 2006-2010 with 2011-2015, deliveries of mid to heavy jets have increased by 18%.  Similarly, the corresponding figure for global deliveries of larger jets has also decreased by 19%.

The largest number of deliveries was to Germany (134), accounting for one in five of all mid-sized to heavy jet deliveries to Europe between 2011 and 2015. This is an increase of 113% when compared to the previous five-year period (2006-2010). The second largest number of deliveries was to the UK (86 deliveries), followed by Austria (57 deliveries) and Switzerland (55 deliveries).

“Long term, we expect attractive growth in the European business aviation market.”

Dave Labrozzi, chief operating officer of Global Jet Capital said: “Long term, we expect attractive growth in the European business aviation market.  Despite deliveries to the region being down as a whole, it has experienced a steady increase in the number of larger aircraft being delivered.”

“Given that we are one of the only dedicated aviation finance specialist to operate on a global basis, and we have significant funds available to lend to clients here wanting to purchase mid to large private jets, it is an exciting market for us,” added Labrozzi.

Country 2006-2010 2011-2015 Change,
2006/10-2011/15
% delivered since 2011
Germany 63 134 112.7% 67.0%
United Kingdom 70 86 22.9% 34.5%
France 25 36 44.0% 28.8%
Switzerland 41 55 34.1% 41.7%
Austria 56 57 1.8% 44.9%
Italy 22 18 -18.2% 26.9%
Russian Federation 69 38 -44.9% 28.4%
Spain 16 11 -31.3% 19.6%
Portugal 68 28 -58.8% 25.7%
Belgium 12 21 75.0% 55.3%
Rest of Europe 158 225 42.4% 49.6%
ALL EUROPE 600 709 18.2% 41.9%
Global fleet 3,131 2,537 -19.0% 19.5%

Global Jet Capital, which was launched in 2014, 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.

Terry Spruce
By Terry Spruce May 25, 2016 11:24