Considering going private? The experts at UBS demystify the ownership model and reveal everything you need to know about purchasing our own jet.
Acquiring a private jet is often driven by the desire for simplicity, privacy, and the freedom to travel independently. The process involves answering important questions and finding the right solutions: from selecting the ideal jet to navigating the acquisition procedure; appointing professional aircraft management to keep your aircraft in top condition; and deciding whether to finance the aircraft. This includes exploring various financing options such as loans or leases, and working with financial experts to structure the best deal. Proper financial planning ensures that the acquisition and maintenance of your private jet are both cost-effective and aligned with your long-term goals. Fortunately, expert assistance in aircraft finance is available to guide you through every step.
UBS, a leading global wealth manager, finances mid-size to ultra-long-range aircraft for ultra-high-net-worth-individuals as part of their global wealth management services. With experts in Zurich, Singapore, and Hong Kong, the team offers decades of experience in providing tailor-made financing solutions for both current and prospective owners.
The aviation department is supported by UBS offices in other global destinations, including Monaco where the company has a stable of private bankers. The aviation and yacht finance team, led by Johan Blitz, leverages an extensive global network to offer a wide range of solutions. Based in Zurich, Blitz has over two decades of experience with global banks. He established UBS’s aviation finance department in 2006, growing it into an award-winning team, and now also leads the yacht finance department.
“The acquisition of a private jet is recognised as a significant endeavor, especially for ultra-high-net-worth-individuals who seek independence and privacy,” Blitz states. “A private jet offers unparalleled freedom and flexibility, allowing owners to travel safely on their own terms.”
Blitz observes that the acquisition of a private jet can be a smooth and rewarding experience, tailored to meet varying levels of complexity. “Clients seeking to acquire a business jet are not merely looking for a service; they are looking for a trusted partner to guide them through this journey, which can be complex. It goes beyond a simple transaction, requiring a deep understanding of the client’s unique needs and aspirations.”
And expertise and dedication throughout the entire undertaking are key ingredients to ensure the acquisition is seamless and tailored to specific requirements. “We guide the client with the knowledge and expertise gained from hundreds of transactions, ensuring that their desire for freedom and peace of mind becomes a reality,” says Blitz.
Here, he reveals insights into the process of private jet financing, shedding light on the key aspects and considerations involved.
Who approaches you for private jet financing?
Individuals or their representatives who are looking to acquire their first private jet, those who already own one and wish to upgrade, or those seeking to optimise their current aviation assets. Most of the time, incoming requests come from our teams of private bankers that have a holistic approach to the relationship. For example, in Monaco, we have a strong and dynamic team that we educate on a regular basis about our specific offering. With our experts, we provide access to a network of industry professionals essential for a smooth acquisition process. This comprehensive support not only facilitates exploring all available options but also saves valuable time for our clients, allowing them to focus on what truly matters.
What are the first things you look into?
From the outset, we assess closely with our clients to understand their needs and objectives. Whether it’s an equity release of an already owned aircraft, financing a new acquisition, or purchasing a newly built jet, we recognise that each situation is unique. Together, we develop bespoke solutions tailored to meet the specific requirements and aspirations of each client, ensuring a seamless and personalised experience.
How long does it take to secure financing?
Once we have agreed on general terms, we coordinate the deal structuring to reach a mutual agreement. This includes an overall assessment of the aircraft and the applicant’s financial situation. Given a satisfying understanding of all parties, a documentation procedure will follow, where time-conscious coordination between all involved parties is one of our key capabilities. Based on experience, our expected timeline is approximately three to four weeks from request to disbursement of financing.
People interested in learning more about aspects of financing an aircraft can ask their local private banker to visit Johan Blitz and his team in person during EBACE25.
