The company recently launched Europe's first direct financing product for the fractional aircraft industry. This follows the successful launch of financing in the USA, which the company started in 2010.
"We are responding to increasing abandonment of aviation financing by banks and lending institutions. Finance is particularly needed in key markets like Eastern Europe and Russia, but will be available across all regions." stated Luis Pinto, CFO, NetJets Europe.
Customers need to make an initial 25% down payment, then finance the balance, with interest rates varying depending on the hours purchased. The structure lets an acquirer capitalize the acquisition on their balance sheet and write off depreciation.
"With the current economic climate, many businesses are working to avoid the large capital outlay traditionally associated with jet or even fractional jet ownership, especially given the scarcity of credit from the traditional lenders. However, corporates still need to fly to do business and remain competitive, and want the financial and tax benefits that leasing can't deliver." continued Luis Pinto.
The company claims that the finance model delivers significant savings compared to leasing on midsized jet options, and even greater reductions on larger cabin models.