As many as 29 new private jets worth around US$1 billion ($1.4 billion) could be delivered to Singapore between now and 2025, according to analysis by Shearwater Aero Capital, a US-based global corporate aviation finance specialist.
Singapore has a fleet of some 52 business jets, the firm said in a statement yesterday. Of these, 41 are classified as "heavy" or large aircraft while four are medium-sized. Seven are classified as "light", and are some of the smallest aircraft models.
Shearwater Aero Capital managing partner Chris Miller said Singapore is an attractive market for business aviation finance firms as it has larger, more expensive aircraft than other countries. "Like the rest of Asia, Singapore is also waking up to the benefits of using (loans) to purchase business aircraft, as opposed to just paying cash," he said.
Around 30 to 40 per cent of all business aircraft purchases in the Asian region in recent years have been financed with loans, he told The Business Times.
Shearwater Aero Capital provides asset-based loans on new or pre-owned business jets worth over US$100 million (S$137 million), by securing the aircraft as collateral. It acts as a direct lender with its funds coming from private investors comprising family offices and high net worth individuals. It has financed clients from Asia, the Middle East, Africa and the United States.
While the company does not have Singapore-based clients, some of its clients in Malaysia and Hong Kong have a business presence in Singapore.