To coincide with Africa’s first African
business aviation conference and exhibition (AfBAC), running from 29th November
to 1st December in Johannesburg, South Africa, new analysis of industry data by
Global Jet Capital, a global leader in financial solutions for private aircraft,
reveals that the continent’s business jet market is set for significant growth.
The company predicts that the African private
jet fleet will grow by more than 25% by 2025, with 160 new aircraft being
delivered to the continent. These aircraft are forecast to have a total value of
around $3.9bn, or just under $500m per year.
A key driver behind this growth will be the
southern Africa region which is expected to account for around a third of all
the jets based in the continent.
Region |
Private jet fleet size 2017 |
Anticipated private jet fleet size 2025 |
|
Southern
Africa |
145 |
184 |
Western
Africa |
97 |
124 |
North
Africa |
79 |
101 |
Central
Africa |
59 |
75 |
Eastern
Africa |
29 |
37 |
|
All
Africa |
408 |
520 |
The total value of the jets to be delivered to
southern Africa by 2025 is predicted to be around $1.4bn. One of the big
challenges in ensuring these forecasts are met and that Africa benefits from the
advantages of business aviation is to have the financing solutions available to
support aircraft acquisitions.
Simon Davies,
VP Sales, Middle-East and Africa for Global Jet Capital, comments: “We recently
carried out research amongst business aviation professionals which showed that
more than three quarters expect the demand for aircraft financing to increase in
the next five years.2 It is critically important that clients are able to access
financial support in order to continue to develop the African business aviation
fleet.
“We are seeing a growth in global demand for
operating leases, which have the advantage to the operator of placing the
residual risk of the aircraft with the lender rather than the lessee. We expect
to see this trend in African markets as well and look forward to discussing
these options at AfBAC this week.”
Global Jet Capital is capitalized by three
global investment firms - GSO Capital Partners, a Blackstone company in
partnership with Franklin Square Capital Partners; The Carlyle Group; and AE
Industrial Partners. In January 2016, Global Jet Capital completed the purchase
of GE’s corporate aircraft lease and loan book in the Americas. The company
currently has approximately $2.5bn in assets under management. |