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Aircraft financing firm sees Singapore getting 29 private jets worth US$1b in next 6 years

AS many as 29 new private jets worth around US$1 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 press statement on Thursday. Of these, 41 are classified as "heavy" or large aircraft while four are medium-sized. Seven of the jets are classified as "light", representing some of the smallest aircraft models.

Chris Miller, managing partner of Shearwater Aero Capital, said Singapore is an attractive market for business aviation finance companies because 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,” Mr Miller said. 

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He told The Business Times on Thursday that around 30 to 40 per cent of all business aircraft purchases in the Asian region in recent years have been financed with loans.

Shearwater Aero Capital provides asset-based loans on new or pre-owned business jets worth over US$100 million, by securing the aircraft as collateral.

The company acts as a direct lender with its funds coming from private investors comprising family offices and high net worth individuals. It has provided loans from US$1.5 million to US$15 million for a range of aircraft from a Hawker 400 XP to a Bombardier Global 5000. It has also financed clients from Asia, the Middle East, Africa and the US.

While the company does not have Singapore-based clients, some of its clients in Malaysia and Hong Kong have a business presence in Singapore, Mr Miller told BT.