Jet.AI secures non-recourse financing for fleet expansion
Bombardier Challenger 350 photographed on May 3, 2019 at KTRM
Private aviation company Jet.Ai announced that it has successfully arranged non-binding, non-recourse debt financing to purchase Bombardier Challenger 3500 aircraft.
The company said the proposed purchase of Bombardier aircraft is valued at approximately $280m based on today’s list price.
“Today’s announcement marks a significant step forward in our fleet expansion plan. Following our successful $25m order with HondaJet, this new $280m order with Bombardier for larger jets would represent a substantial increase in scale,” said Mike Winston, founder and executive chairman, Jet.Ai.
“We anticipate deliveries to commence in 2026, allowing ample time for pre-sales and operational preparation. Despite being a mature cyclical industry, private aviation continues to offer attractive returns on capital investment.”
It is worth mentioning here that Jet.Ai announced its intention to acquire five Bombardier Challenger 3500 super-midsize jets in December 2022 to sell fractional interests.
Non-recourse financing is a specific type of loan where if Jet.AI can’t repay the debt, the lender can’t go after their other assets (like other airplanes they own).
It’s a riskier loan for the lender, so Jet.Ai is likely to have agreed to pay a higher interest rate for the financing.
