UK charter airlines occupy a vital role in British aviation - connecting holiday makers with Mediterranean, Caribbean and long-haul destinations that scheduled carriers do not serve direct, and providing ad-hoc capacity for sports tours, religious travel and specialist charter markets. Finance for charter airline operations reflects the seasonal revenue profile, aircraft utilisation patterns and fleet planning cycles that characterise this sector.
UK charter airlines holding Public Transport Licences (PTLs) and operating under UK CAA Part-121 are the largest users of commercial aviation finance in the non-scheduled sector. Fleet planning typically involves a mix of owned and leased aircraft, with finance structures calibrated to the summer programme cycle and long-term capacity planning.
Holiday charter airlines typically operate A320 family or Boeing 737 family aircraft. Ad-hoc charter operators may use a wider range of aircraft types - from executive jets to 737s and A321s. The finance structure for charter airlines needs to reflect the seasonality of revenue, the importance of aircraft availability for the summer programme, and the regulatory requirements of PTL operation.
DBF works with charter operators ranging from single-aircraft PTL holders to multi-aircraft charter airline groups. We understand the seasonal cash flow patterns, the importance of aircraft availability and the relationship between fleet planning and finance obligations. Our lender relationships span the full range of charter operator requirements from light-touch HP facilities to complex fleet restructurings.
Key Lenders for This Segment
| Lender | Rate from | Strengths |
|---|---|---|
| Investec | 5.8% p.a. | Specialist aviation, large tickets, strong covenants |
| HSBC | 6.0% p.a. | Global capability, complex structures |
| Close Brothers | 6.1% p.a. | Proven commercial desk, accessible |
| Paragon | 6.9% p.a. | Flexible on complex or unusual structures |
| Shawbrook | 7.2% p.a. | Accessible for newer operators |