The role of well-structured financial solutions

Aircraft acquisition is a capital-intensive and time-consuming process that involves significant technical and financial considerations, while also requiring close collaboration with banks and investors.

Well-structured financial solutions are therefore essential for carriers today to grow their fleets. Firstly, tailored monetary products and credit facilities ensure timely aircraft procurement and flexible payment structures. Secondly, expert advice can help manage interest rate fluctuations and other risks, preserving liquidity or providing tax benefits.

Because passenger demand doesn’t sleep, the aim is to find a path forward for airlines to maintain operational stability and remain competitive.

Managing risks

Timely and well-aligned financing is critical to avoid the pitfalls of an aircraft acquisition. Misaligned or delayed advice can lead to increased interest rates, lack of funding availability and missed payment obligations. When airlines have limited fleet capacity due to the delayed acquisition of aircraft, it restricts their ability to meet passenger demand. Inefficient structures not only increase costs therefore, but also limit a carrier’s expansion plans.

Having a proactive approach and partnering with a trusted advisor mitigates uncertainties and challenges for airlines, ensuring operational stability and customer satisfaction.

The value of connections

When looking for a partner in the acquisition process, the key is finding a team that holds close relationships with financial institutions. The right advisor can help in understanding airline needs, offering customized products and ensuring there are no surprises along the way.

Jetcraft Commercial has originated, purchased, sold and remarketed more than 500 aircraft, with a global team that is well-placed to offer innovative and competitive solutions for its customers. We streamline the acquisition process, leveraging our ties with banks, lessors and export credit agencies. Supporting regional airlines and those in developing markets to navigate the complex fiscal landscape is also our speciality, so financing secured is timely and meets specific needs.

Accessing credit

In December 2023, Jetcraft Commercial announced its partnership with Absa Group Limited, enhancing our capability to support strategic growth and market expansion for our airline partners. The credit facility allows Jetcraft Commercial to purchase and hold aircraft while customers secure funds, providing buyers with the flexibility to seize opportunities quickly.

It also supports operators with complex needs and longer purchase timelines, especially in markets where financing may be less readily available. Establishing new lines of credit also opens the door to leasing activities, reflecting the changing dynamics of the commercial aviation market where leasing is becoming more commonplace.

At Jetcraft Commercial, we offer diverse expert consultation, streamlined processes and proactive risk management, ensuring sustainable growth and operational excellence for our customers.