NetJets has launched an in-house financing service for fractional ownership buyers designed, it says, to by-pass the time-consuming and complex financial offerings available through the banks or third-party offering. The move will also help to rebuild its fractional customer base, which was hit badly by the economic downturn.
NetJets chief executive David Sokol says: "Whether they are renewing an existing ownership share, expanding their private jet usage, or simply looking for a way to reduce upfront costs, this financing option represents a smart way to make capital deployment decisions. And, because of our financial strength [as a subsidiary of Berkshire Hathaway], NetJets is the only private aviation company to be able to offer direct, competitive financing."
NetJets Direct Financing is only available to owners that are business entities. Private individuals do not qualify.
The financing minimum is $100,000, with a down payment of 20%, a fixed interest rate, and a term and amortisation schedule that is based on the vintage of the aircraft and the contract length. The term is up to five years with an amortisation schedule of 20 years, minus the age of the aircraft and a balloon payment at the end.