Business aviation is a highly complex and regulated industry. Funding aside, there are operational, jurisdictional, tax, regulatory and capital treatment implications to consider as well— along with the operational costs and technology upgrades that are an essential part of successfully managing a highly sophisticated, multi-million-dollar flying asset.
As a business originally operated as part of GE Capital, we’ve completed successful transactions for thousands of satisfied clients. That pedigree translates into more than simply a funding partner. It translates into the kind of deeper, richer insight that results in superior lift solutions, more successfully closed transactions—and an experienced partner who listens and reacts to your unique needs.
At Global Jet Capital, our clients benefit from:
This means you have access to the financial strength and infrastructure necessary to access a variety of flexible leasing and financing solutions. More importantly, since business aviation is our only business, we’re experts when it comes to navigating this highly regulated and complex industry.
This unique combination of financial and asset management expertise, deep industry experience and significant financial scale sets us apart. And our financial, operational and strategic consulting services are designed to assist clients at every stage of the process—from needs analysis and inspection oversight to progress payment financing and sale and leaseback arrangements. Because we’re not a bank, we offer a high degree of flexibility in delivering customized solutions designed to meet each client’s individual needs.
With a Global Jet Capital Operating Lease, you’ll enjoy the full use of your aircraft, without the capital outlay. At the end of the lease, return the aircraft and select your next one, free from worries about residual values or the complexities of arranging a resale.
The operating lease is an increasingly popular financing tool designed to help private aircraft users hold onto capital and upgrade aircraft on a regular basis.
Allocation of Capital: Typically, a traditional loan is limited to no more than 70% of the total cost of the aircraft—which means a significant down payment for a constantly depreciating, non-core asset. With an Operating Lease, up to 100% of the cost can be financed. More importantly, the large down payment of a loan scenario is replaced by a smaller security deposit along with other closing costs.
Reduced Risk and Predictable Expenses: With an Operating Lease, the value of the asset at the end of the lease is Global Jet Capital’s risk—not yours. As one of the largest owners of business aircraft in the industry, we’re able to hedge that risk across a very large asset pool and global markets. So, you no longer have to worry about how new technology, excess supply or global economic conditions will affect resale values.
Disposition Certitude: Our “end-of-lease return option” provides a built-in “buyer” for your aircraft at lease-end for eventual ease of disposition. This enables a smooth transition into your next aircraft—avoiding broker costs, time-on market delays and the hassle generally associated with aircraft sales.
More Efficient Tax Treatment: If you cannot use or are only partially able to use, tax depreciation, an Operating Lease can be structured to lower the cost of your lease payments without adversely affecting your ability to qualify for exemption from state sales and use tax.
Keep Your Bank for Banking: An Operating Lease from Global Jet Capital provides substantial funding on a depreciating asset that is separate and apart from other primary bank facilities and secured only by the aircraft.
Greater Privacy: An Operating Lease reduces visibility to an aircraft’s end user, as the public records of the FAA would identify Global Jet Capital as the owner of the aircraft.
Easier Upgrades: With lower upfront capital requirements, and no need to sell your existing aircraft, the path to a more contemporary, longer-range aircraft just got easier.
Know before you go.
The process of selecting and acquiring an aircraft starts with a deep understanding of the many costs associated with the purchase. There are a range of factors that can affect not only the purchase price but the operating costs as well. Global Jet Capital works closely with its clients to lock in solid pre-approvals, giving you the certainty you need as you go into the acquisition process.
Put a cap on your capital overlays.
Building a new aircraft can be a multi-year process. Manufacturers require that installment payments be made to cover cost of materials and manufacturing. We help you pay for some or all of these installments—generally referred to as progress payments. With progress payment financing, you pay periodic interest charges at an agreed upon rate. All principal amounts loaned as part of the progress payment financing are applied to the permanent financing of the aircraft, whether by way of an operating lease, a finance lease or otherwise. Not traditionally offered by banks, progress payment financing allows you to minimize the amount of capital tied up in the 18 to 24-month period prior to delivery.
Financing is about flexibility
A finance lease (also known as a capital lease) provides financing for up to 100% of the cost of a private jet. Once the lease has been paid in full, the aircraft title will pass from Global Jet Capital to you. With a financing lease, you will be expected to provide an initial down payment towards the acquisition cost of the aircraft (typically between 0% and 15% of the aircraft cost) with Global Jet Capital providing a finance lease to cover the remaining balance of the acquisition cost. The term of the finance lease is typically five to 12 years. The finance lease will be repaid down to a lump sum or "balloon" payment due at the final payment date. The size of the balloon will be a function of the term of the finance lease and age and estimated future value of the aircraft, among other factors.
Customized loan structures
Global Jet Capital offers a variety of loan structures including attractive fixed rates, 5-12 year terms, and convenient payment options. With our broad asset base and powerful financial backing, we’re uniquely positioned to provide customized financial solutions to fit your aviation and business needs.
Upgrades without the downtime
Whether mandated by regulation, driven by technology—or simply reflective of daily use, repairs and refurbishment are a fact of life in business aviation. We know how to mitigate technical risks—the equipment upgrades, refurbishment costs and inspection process that can slow you down. Whether you’re managing a global operation or a first-time buyer, we provide you with options for new or used aircraft, and create the most efficient solutions to support your needs.
|ACJ 319||Used||Middle East||Loan Financing|
Client initially wanted a Finance Lease, but as the transaction date approached the Client chose to convert to a standard Loan Financing. Global Jet Capital seamlessly made the transition and was able to close financing in two weeks. Global Jet Capital also worked very closely with the Client throughout the process to successfully implement an extremely efficient tax structure based on a unique operating construct.
|Global 5000||Used||Europe||Operating Lease|
Client was looking for their incumbent bank to provide an Operating Lease following value erosion on their last business aircraft purchased through standard Loan Financing. Their incumbant bank was only willing to offer a Synthetic or Finance Lease. Client turned to a Global Jet Capital Operating Lease for desired structure and terms.
|Challenger 350||New||Asia Pacific||Operating Lease|
Client initially wanted a Finance Lease, but just weeks prior to delivery decided the residual value risk mitigation and overall flexibility of a Global Jet Capital Operating Lease was a better option. Global Jet Capital quickly revised transaction documents and provided the Client with an Operating Lease without slowing the transaction.
|Citation XLS+||Used||North America||Operating Lease, Equipment
Client was in the process of re-organizing its operations and needed multiple aircraft to support internal travel requirements. A Global Jet Capital Operating Lease supplemented its purchase of an additional aircraft, thereby balancing the residual value risk associated with the ownership of a multiple aircraft fleet. Global Jet Capital was also able to provide Equipment Upgrade Financing that was eventually rolled into the Operating Lease.
|Falcon 7X||Used||North America||Operating Lease|
Global Jet Capital was marketing a used Falcon 7X inventory aircraft that met the Client's requirements. Following a rapid internal pre-buy process Global Jet Capital was able to offer the Client an Operating Lease with a flexible structure allowing for a unique registration and operational context.
|Legacy 500||New||Latin America & Caribbean||Finance Lease|
Client required simultaneous financing of two new Legacy 500 aircraft; one a sale-lease back and one direct financing. Global Jet Capital was able to support the Client's requirement for a unique and flexible multi-national loan structure for the two aircraft that was completed in a very short time frame through two separate Finance Leases.
|G450||New||North America||Progress Payment Financing
Global Jet Capital provided the Client with 100% Progress Payment Financing with automatic conversion to a Global Jet Capital Operating Lease upon aircraft delivery. Seamless transaction with minimal out of pocket expenses for the Client to transition to new aircraft.
Progress Payment Financing
Global Jet Capital pre-approved the Client during their aircraft evaluation process. Once the Client ordered a brand new aircraft they were facing 15 months of Progress Payment Financing. Global Jet Capital was able to structure 100% Progress Payment Financing. The transaction automatically converted into a Global Jet Capital Operating Lease upon aircraft delivery.