Under the Jetquity program, buyers of business aircraft agree at the time of the purchase to later sell their aircraft to Jetquity at a preset price.
GENEVA—The International Aircraft Dealers Association has partnered with Jetquity to offer a Residual Value Guarantee Program to its business aircraft resale clients.
The program offers Jetquity’s guarantee that it will buy the aircraft after a period of three or five years, the two announced the day before the opening of the European Business Aircraft Association Conference & Exhibition here.
Under the Jetquity program, buyers of business aircraft agree at the time of the purchase to later sell their aircraft to Jetquity at a preset price established through the use of algorithms and artificial intelligence. It is a way to guard against future market volatility or downturns in the pre-owned market, says Asid Rahman, Jetquity CEO and managing partner.
The buyers pay a fee equal to a small percentage of the aircraft’s value. Should the aircraft be worth more than the guaranteed price, the owner is free to sell it on the market, with no maximum price cap. If it is worth less than the guaranteed price, Jetquity buys it at the pre-established figure.
“An [International Aircraft Dealers Association] dealer who sells a Jetquity Residual Value Guarantee will represent Jetquity in reselling the aircraft,” says Phil Winters, the association’s chairman, who is also vice president of aircraft sales and charter management for Greenwich AeroGroup & Western Aircraft.
Jetquity, which Rahman founded in May 2023, has done 80 deals with aircraft buyers, he says. The company is financially backed by a number of Middle East family offices, sovereign wealth funds and U.S. financial institutions. Jetquity operates offices in New York, Dubai and London.
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