Jetquity Launches To Provide Aircraft Value Backing

Aviation technology and financial entrepreneur Asad Rahman has teamed up with veteran industry executive and former National Air Transportation Association executive v-p Ryan Waguespack to launch Jetquity, an international private investment house that backs the residual values of private jets.

With offices in the U.S. and the Middle East, Jetquity is rolling out two plans: Protect Plus, for aircraft up to three years old, which protects a minimum of 80 percent of the residual value for five years, and Protect, for aircraft between three and 15 years old, which protects a maximum of 75 percent of the residual value for five years.

“When you buy a business jet today, one of the concerns you may have...is what’s my aircraft going to be worth in a few years’ time,” explained Rahman, who previously founded London-based NeoJets and AR Jet Set Club. Under the programs, aircraft owners have an assurance of their aircraft’s value after five years.

"With the current economic climate, the timing of the Protect Program couldn't be more apt," said Rahman, who is CEO of the new venture. "We've seen a remarkable demand for both our standard and bespoke programs. Our customers seek certainty and value, and this is precisely what our Protect Program delivers."

Jetquity is backed by Middle East sovereign wealth funds, U.S. investment firms, and some of the largest family offices and was founded through the study of years of analytics surrounding the business aircraft market.

Rahman previously established a technology company to collect data on business aviation and identify key patterns of asset utilization versus valuation in the context of macroeconomic trends, he noted. Jetquity leverages that approach, which enables the company to more accurately assess values, even in a time of inflated pricing.

He gave as an example the Gulfstream G650ER, which has a concentration of oil and gas buyers. The company can build in risks of its asset evaluations of the G650ER in part, taking into account the larger oil and gas market.

“We can now build on top of that data and effectively create business aviation's first real fintech [financial technology] where we're able to take that data and use it to actually solve a problem,” Rahman told AIN.

Enrolled aircraft must meet certain quality-of-care standards, and Jetquity has developed a selection of management companies that would meet those standards. “We want to drive quality and pedigree quality and management right into the market,” Rahman said, “so our owners see a higher end game of the value of the asset.”

Waguespack, who is spearheading that end of the business as head of asset management, added, “We've been at the forefront of developing this program with a strong focus on not just meeting but exceeding expectations. By working alongside the industry’s leading players, we're creating a program that truly elevates the ownership experience, while simultaneously building value for our stakeholders."

While a new program, Jetquity had already built a backlog of 18 aircraft globally to enroll. “We've had such a surge of interest,” he said, “we’re kind of cherry-picking.”