Why buy when you can lease? Why tie up $50 million in a jet – a depreciating asset – when you can lease the jet, dress it as your own, fly it as your own, yet not have it on your balance sheet?
Those are the questions being asked here by Colin Steven, formerly of, who is launching Veling Tayara with partners including former Embraer Executive Jets president Ernie Edwards.
“In today’s environment, there are smarter ways to invest your capital than in a depreciating asset,” the company says.
“Ninety percent of the airlines lease,” Steven says. “There’s no reason why the business aircraft operator shouldn’t lease.” Veling Tayara is applying that idea, combining the expertise of business aviation veterans such as Edwards and Steven with the airline leasing acumen of men such as Nirvan Veerasamy, a Veling Tayara director who helped liquidate the aircraft of India’s bankrupt Kingfisher, making money, he says, for the financing banks in the process.
“We understand the asset,” Steven says. “We understand the market.” The first aircraft Veling Tayara will handle? “We’re looking at the top end,” Steven told ShowNews. “The top end is moving.”
The Veling Tayara team believes it will have little problem convincing banks that business jets represent a quality asset in which to put their money.
After all, Veerasamy says, “the people who are operating business jets are a hell of a lot more liquid than the airlines.”
Veling Tayara managing director Colin Steven is based in Dubai; chairman Ernie Edwards is based in Boca Raton, Florida; director Nirvan Veerasamy is based in Mauritius; and structures finance VP Sebastian Moonjely is based in London.
Tayara, Steven notes, is Arabic for “airplane.”