According to the management of Jet Republic, the overriding reason that the company suddenly ceased trading on August 20 was because “the aviation asset finance market has completely dried up, making it much more difficult for potential clients to take out and obtain financing for fractional ownership of jets.”
As JetDirect Aviation Acquisition Company nears its planned purchase of assets of JetDirect Aviation, JDAAC chairman Robert Pinkas acknowledged the company’s responsibility to repay money owed to current and former JetDirect employees. AIN has received multiple complaints of bounced paychecks and non-payment of expenses and benefits from both current and former JetDirect employees.
The used business jet market has not yet reached equilibrium. That was the general consensus among industry experts at the National Aircraft Resale Association (NARA) forum in Dallas at the end of February.
Business aircraft buyers can expect loans to be harder to find and more costly, according to Adam Warner, president of Key Equipment Finance, Downers Grove, Ill. “There are fewer players in the finance market because some banks simply don’t have capital to lend,” he said. Those that have money are more selective and now less willing to finance 100 percent of an aircraft’s value.
Business aviation financiers exhibiting here at EBACE’08 have arrived in Geneva largely uncertain about the full implications of the ongoing squeeze on the global credit market and the availability of funds to pay for aircraft purchases. Last month, EBACE Convention News approached six banks listed as exhibitors, but only two–Citi Private Bank (Booth No. 1441) and Bank of America (Booth No.
While the fractional market continues to expand, shareholder growth is advancing at a slower rate, according to data from the Union Bank of Switzerland (UBS).
The Canadian Cabinet has approved a $250 million loan from the so-called Canada Account for a past transaction involving 10 Bombardier CRJs to Cincinnati-based Comair. The move marked the first application of a new $1.2 billion credit facility established by the Canadian government specifically to fund regional jet sales. It also relieved Bombardier of its exposure to an interim private loan issued at the point of sale.
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