Financial and Investment Models For Business Aviation Development

Ruslan Seisembekov ()

Journal of Artificial Intelligence General science (JAIGS) ISSN:3006-4023, 2024, vol. 4, issue 1, 525-542

Abstract: Business aviation has become an essential facilitator of international business, providing flexibility, connectivity, and time savings to corporate leaders, entrepreneurs, and governments. Nevertheless, the developmental path of the sector is heavily relying on long-term financial and investment frameworks that can help to purchase, maintain, and increase the number of business jet fleets. This paper reviews three significant ownership models, such as charter companies, fractional ownership, and public-private partnerships (PPP) as a way of developing business aviation. The paper elaborates their strengths and weaknesses in relation to their financial structures, operational implications, and scalability by examining their operational implications and their strengths and weaknesses in responding to various demands of the market.In addition to internal sources of financing, the paper examines the possibility of international investment with special attention to the Gulf nations and China. The Gulf states, with their sovereign wealth funds as well as aviation-focused plans, have made their mark as the world leaders in aviation infrastructure and luxury travel markets, making them a good investment in business aviation. In the meantime, the rapid amassing of private wealth by China, along with its changing regulatory structures and its Belt and Road Initiative, represents an equally valid source of potential capital and strategic partnership.This paper, based on a comparative and analytical approach that rests on the available literature, industry reports, and global aviation case studies, shows that the most sustainable aviation business development is hybrid financing that involves charter operation, fractional ownership models, and infrastructure supported by PPP. The results indicate that regulatory alignment, promotion of the use of private capital, and use of international relationships, especially with Gulf and Chinese investors, can greatly boost globalization in the sector.

Keywords: Business aviation; financial models; charter companies; fractional ownership; public–private partnerships (search for similar items in EconPapers)
Date: 2024
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