Executive aviation
In the executive aircraft market GA-Finance offers financing structures
for all new and recent models. In this segment structures are mostly designed
to accommodate specific ownership and utilisation requirements and can
be based on- or offshore.
Financing
In most cases, financing up to some 80% of the market value can be obtained
by means of secured senior debt or a finance lease. Depending on the type,
the owner and the country of registration it might even be possible to
finance up to 100% of the purchase price of the aircraft.
Besides outright ownership with an asset based financing attached, finance
leases and operating leases are common structures within the executive
aviation sector.
Aircraft valuation
As slow depreciation of the asset enables slow amortisation of the financed
amount, considerable financial leverage may be maintained throughout the
transaction, which usually has a tenor of 5 to 10 years.
The non-amortised part of the financing is repaid as a balloon payment at the end of the transaction and may be around 50% of the forecasted future market value of the aircraft.
Structured solutions
Structured Asset Finance solutions comprise more complex transactions
whereby the aircraft is held in a dedicated Special Purpose Vehicle, which
is structured to benefit from specific accounting, legal or tax advantages.
The Special Purpose Vehicle, as the owner of the asset, leases the aircraft
to the operator for private and/or corporate use.
EBAA member
As member of the European Business Aviation Association we are in constant
contact with the market and are always informed on the latest developments.
