Jet AI says the financing will be used to launch a Challenger 3500 fractional ownership program.
Private jet flight Jet AI announced this morning that it has arranged non-binding, non-recourse debt financing related to its proposed purchase of Bombardier Challenger 3500 aircraft.
The super-midsize jets are valued at around US$280 million based on current list prices.
A press release states, “The debt financing arrangement, in conjunction with the previously announced Ionic Ventures LLC financing, positions the company well to execute on its long-planned fleet order in management’s view.”
Founder and Executive Chairman Mike Winston said, “Following our successful $25 million order with HondaJet, this new $280 million order with Bombardier for larger jets would represent a substantial increase in scale.”
He added, “Despite being a mature cyclical industry, private aviation continues to offer attractive returns on capital investment. This factor, coupled with the increased likelihood of completing the deal, reinforces our confidence in this multi-year commitment of hundreds of millions of dollars.”
In December 2022, Jet.AI (formerly known as Jet Token) executed a non-binding letter of intent to acquire five new Challenger 3500s from Bombardier.
It plans to pre-sell fractional interests in them.
Since then, the particulars of the aircraft’s specifications were negotiated.
The order was upsized for delivery over three years, beginning in early 2026.
Jet AI said the timing of deliveries allows for “ample time for pre-sales and operational preparation.”
According to Investopedia, “Non-recourse debt is a type of loan secured by collateral, commonly property. If the borrower defaults, the issuer can seize the collateral but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. A non-recourse debt does not hold the borrower personally liable for the loan.”
Last month, the company expanded its jet card program nationally.
It offers customers the option of having up to 75% of their funds escrowed at the time of deposit.
