56 new private jets worth €2 billion in Malta by 2025

A global corporate aviation finance specialist is predicting that as many as 56 new private jets could be delivered to Malta between now and 2025

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A global corporate aviation finance specialist is predicting that as many as 56 new private jets could be delivered to Malta between now and 2025. The cost of these aircraft could be in the region of $2 billion.

Shearwater Aero Capital provides asset-based financing options to help clients purchase new or pre-owned business aircraft by securing the aircraft as collateral and intelligently managing the asset to preserve its value.A global corporate aviation finance specialist is predicting that as many as 56 new private jets could be delivered to Malta between now and 2025.  The cost of these aircraft could be in the region of $2 billion.

Shearwater Aero Capital provides asset-based financing options to help clients purchase new or pre-owned business aircraft by securing the aircraft as collateral and intelligently managing the asset to preserve its value. Since its launch in 2014, it has provided over $100 million in asset-based loans on aircraft located around the world.

The company’s analysis reveals that Malta currently has a fleet of around 119 business jets, and 101 of these are classified as ‘heavy’ or large. Three of the jets are medium sized, and 15 are classified as ‘light’ – these represent some of the smallest aircraft models.

The data does not specify how many of the aircraft are privately owned and how many belong to the numerous air charter companies that use Malta as a fixed base of operations.

Chris Miller, Managing Partner of Shearwater Aero Capital, said Malta was a very attractive market for business aviation finance companies like theirs.

“It has larger, more expensive aircraft than some other countries, and the market here is increasingly focusing on benefits of using financing to purchase business aircraft as opposed to just paying cash,” he said.

Asset-based financing provides an opportunity for investors to capture high-yield value in the fastest growth segments of aircraft sales – international developing markets.

Last month Shearwater Aero Capital announced it’s looking to raise up to $200 million to support its growth, following its strongest performance ever in 2018. The company provides finance solutions for all types of aircraft.  

Family offices and private equity firms have provided the vast majority of its funding, and they have received an average Return on Investment (ROI) of between 13% and 15%, with no losses.

Funding is relatively low risk with an average loan to value of 65%. As added investment security, all financed aircraft are independently operated by third parties unrelated to the obligor, so in the event of a default Shearwater can quickly repossess and liquidate the aircraft to satisfy outstanding balances.

2018 was Shearwater’s strongest yet accounting for 60% of the company’s business since its launch in 2014.  

Last year, its average loan size was approximately $7 million.  It has provided loans from $1.5 million to $15 million for a range of aircraft from a Hawker 400 XP to a Bombardier Global 5000 and financed clients from Asia, the Middle East, Africa and the USA.

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