The International Aircraft Dealers Association (IADA) has partnered with Jetquity to offer its Residual Value Guarantee Program exclusively to business jet resale clients of the dealer association. The joint announcement was made at an IADA press conference held at EBACE 2024 in Geneva, Switzerland.
The Jetquity programme safeguards business aircraft buyers against future market volatility by agreeing to purchase the aircraft at preset prices, established using proprietary algorithms and AI. Jetquity is an IADA-verified products and services member, with offices in New York, London and Dubai.
“We are very pleased with this agreement to expand our Residual Value Guarantee Programs to the powerhouse IADA international resale network,” said Asad Rahman, Jetquity CEO and managing partner. “We have found that IADA-accredited dealers are the world’s best experts in helping their aviation clients.”
“Our innovative guarantees give IADA dealers valuable tools to help their clients avoid possible future financial downturns in the preowned aircraft marketplace,” Rahman continued. “Only IADA dealers will be permitted to sell Jetquity’s Residual Value Guarantee Program to their preowned clients.”
Jetquity, which currently has 80 deals with aircraft buyers, is financially backed by a collection of Middle Eastern family offices, sovereign wealth funds and US financial institutions. Jetquity has already structured numerous purchasing guarantees for clients of IADA-accredited dealers, including Jetcraft and JetHQ, and a number of IADA OEM members.
“Going forward, Jetquity’s Residual Value Guarantee Program will be available to aircraft buyers using the services of IADA-accredited dealers and certified brokers,” said IADA chairman Phil Winters, who is also VP of aircraft sales and charter management for Greenwich AeroGroup and Western Aircraft. “An IADA dealer who sells a Jetquity Residual Value Guarantee will represent Jetquity in reselling that aircraft,” he added.
Under the Jetquity programme, the aircraft owner clients of IADA dealer members will pay preferential fees consisting of a small percentage of the aircraft’s value, the partners explained. Jetquity guarantees to buy back the aircraft at set prices after three or five years.
At that time, if an aircraft is worth more than the guaranteed value, its owner is free to sell it on the market, with no maximum price cap. If it is worth less, Jetquity buys it at the pre-established price, and engages the IADA dealer to resell it.
