Business Aviation and Helicopter Financing Sector

Expert View – Business Aviation and Helicopter Financing Sector

What are the trends you observe in the business aviation and helicopter sector?
Business Aircraft and Helicopters of course but also Corporate Aircraft are an integrated and vital part in emergency medical and ambulance services, search and rescue, prevention of fires and fire-fighting and various operations in aerial-work and critical areas (forces of nature) to provide care to the people.
SGEF is a long-term business partner in financing business aircraft and helicopters for the world-leading manufacturers. Due to our extensive network and in-depth knowledge in structuring tailor-made financing solutions we provide structured financing to European Medium to Large Corporates and Helicopters Operators.

There are the following significant trends in the Business Aviation and Helicopter Sector:

• (i)    Implementing high-efficient engines with reduced emissions and powered by sustainable fuel (produced out of recycled materials) and reduction of noise. 

• (ii)    Development of hybrid and electric powered light-aircraft and unmanned helicopters (civil-drones)

• (iii)    Improved maintenance to extend the lifetime of the equipment and optimize the investment needs.

SGEF is focusing on structured financing solutions of flying business tools for the real economy. We're supporting primarily SME corporates and helicopter operators in their financing needs.

What are the challenges faced by the industry?
All aircraft and helicopter manufacturers today are facing enormous pressures: Emissions on state-of-the art turbine engines (used for aircraft or helicopters) have been already reduced by 20% in the last ten years and noise by 22%. 
There are very comprehensive efforts ongoing in developing alternative engines powered by electricity or hybrid (hydrogen). Further any flight in the EU has to be compensated by mandatory payments to fully offset the CO2 emissions. 
The ongoing maintenance costs have been already significantly reduced due to substantial developments in using durable and lasting parts and vintage assets will be recycled. 
The corporate aviation market is transforming to sharing models. The usage of corporate aircraft (from the light- to the large one) is even more sensitized by today's corporate owners and decisionmakers. Helicopters save hundreds of lives every day and corporate aircraft contribute substantially to manage necessary business travel for entrepreneurs and decisionmakers.

What can SGEF bring to this sector?
Humans need mobility in their professional and private life. All means of transport (land, water and air) are in the middle of a huge transformation to become more efficient and sustainable. 
IT-Technology and a significant change in our awareness and thinking brought sensitivity in our daily life how to manage meetings and leisure time more sustainably (less travel and virtual communication) but personal communication and meetings are still imperative for people.
Our aviation portfolio is strictly and meticulously managed and monitored on a global basis with local, dedicated aviation specialists in various key countries of SG Group.

We can bring into value in structuring customized financing solutions to cover the needs of our corporate customers. 
SGEF is a first mover in financing of “green flying assets”. We're already working on financing solutions for electric powered aircraft and commercial drones for civil services. Further we're working out structured financing solutions for aircraft sharing models wherein few corporates investing in one asset.

Due to our comprehensive network and in-depth industry expertise we're highly supporting these trends and bring value to the manufacturers and their clients to enable a transformation of the Business Aviation and Helicopter Industry to operate with sustainable and eco-friendly assets.

We are financing flying assets for the real economy!