NetJets Europe has launched the first direct financing product for the European fractional ownership market. The creation - backed by NetJets' parent Berkshire Hathaway - provides new customers with an alternative financing method with rates comparable to those offered by major financial institutions, said the company, based in Lisbon, Portugal.
"With the current economic climate, many businesses are working to avoid the large capital outlay traditionally associated with [outright] jet or even fractional jet ownership, especially given the scarcity of credit from the traditional lenders," said NetJets Europe chief finance officer Luis Pinto. "However, corporates still need to fly to do business and remain competitive, and want the financial and tax benefits that leasing can't deliver."
NetJets' financing model bridges the gap between lease and acquisition, NetJets added, "allowing customers to purchase a midsize or long-range aircraft with a 25% down payment". The interest rates vary depending on the amount of hours purchased by the customer. NetJets boasts a fleet of 160 aircraft and around 1500 customers evenly split between fractional, block charter card and leasing.