Regional airline carriers turn to crowdfunding platform

BY VICTORIA BRYAN, CROWDFUNDING has been used to finance everything from bands to business start-ups, social causes and even plastic surgery. Now it is being used to buy planes.

A new online platform is attempting to attract investors to finance the purchase of small passenger jets — deals that have often struggled to find backing from traditional lenders.


Major airlines such as Emirates and Lufthansa and big leasing companies, which place large orders for dozens of huge aircraft, find it relatively easy to get funding from banks and investment firms.

But regional operators tend to buy just a couple of planes seating under 100 passengers at a time, making funding such deals less attractive as an investment proposition, with lenders demanding more collateral than before the financial crisis.

David Bradley-Ward, a director at regional plane lessor Phoenix Aircraft Capital and a corporate financier, co-founded after Phoenix struggled to find funding for a deal last year to buy a jet from one airline and lease it to another.

The web platform aims to raise money for both leasing companies and airlines via peer-lending to meet the funding gaps in purchasing small aircraft. The difficulty in finding financing means many regional carriers are not able to renew their fleet as quickly as they would like and the process can be costly.

“There’s plenty of financing going on but it’s financing at a different level. There’s no trickle-down effect, which is why we’re seeing the growth of the peer-lending industry,” former RAF engineer Bradley-Ward says.

Crowdfunding allows individuals and small businesses to raise money from pools of investors who can put money into peer-to-peer lending schemes. Investors can lend as little as £10, often without the fees accompanying equity funds.

Pioneering platform Kickstarter, which has been running for five years, says it has received $1.28bn to date from 6.9-million backers to fund 68,181 completed financing projects.

However, given the uncertainties of crowdfunding, which has attracted criticism for lack of investor protection,, a lending platform for aircraft leasing transactions, is starting small.

Its first deal on the site, launched last month, aims to raise £100,000 to help fund Phoenix’s purchase of an ATR 42-500 turboprop jet to be leased to state-owned Colombian airline. Similar aircraft can cost up to $20m when bought new.

read more & source

Tags: , ,


Redding Record SearchlightCrowdfunding isn't about buying but about donatingRedding Record SearchlightImagine you're an innovator with a big idea but not a lot of cash to bring the idea to fruition. You spend some of your own money up front to design a cool demo, and then yo [...]

TechCrunchSnopes seeks crowdfunding in ownership battleTechCrunchHow many times have you heard some urban legend, chain letter or misleading bit of news repeated and immediately found a thorough, fact-based debunking on Snopes? Like every damn day for the last 20 years or so, right? S [...]

Vermont Public RadioAs Regulations Change, Interest In Equity Crowdfunding GrowsVermont Public RadioWhat's often called 'equity crowdfunding' is giving businesses, especially start-ups, a way to raise money when they can't access capital from traditional sources, l [...]

Can-Do Playground featured in national park crowdfunding campaignnews.delaware.govWILMINGTON – On the heels of its 10th anniversary celebration, the Can-Do Playground at Alapocas Run State Park has been selected to be featured on the national crowdfunding site, “Fund Your Park,” by th [...]

MashableStudy shows women are way better than men at crowdfundingMashableMale investors often don't fully understand the value of ideas women entrepreneurs pitch them. They throw capital at food delivery service after food delivery service, but ignore ideas that cater to groups t [...]

BBC NewsCrowdfunding bid to save Brighton's seafront terracesBBC NewsA crowdfunding campaign is being launched to kick-start the repair and regeneration of a section of crumbling Victorian seafront arches. The entire Grade II listed cast iron structure that forms Brighton's [...]

YouCaring Selected as Preferred Crowdfunding Platform for Major League BaseballMarkets InsiderSAN FRANCISCO, July 26, 2017 /PRNewswire/ -- YouCaring today announced that it has entered into a partnership with Major League Baseball (MLB) to bring crowdfunding to the Big Leagues. Throug [...]

Friday Hack Chat: Crowd SupplyHackadayCrowdfunding is a mixed bag, at best. On one hand, you have fantastically successful products like Pebble, Oculus, and the Kano personal computer that managed to take in money, turn out a product, and become a successful company. (If even just for [...]

State College NewsMillbrook Marsh Selected for National Crowdfunding CampaignState College NewsMillbrook Marsh Nature Center in College Township has been selected to participate in the National Recreation and Park Association's "Fund Your Park," crowdfunding campaign. C [...]

American Banker (subscription)Crowdfunding platform expands into small-business lendingAmerican Banker (subscription)CircleUp, which runs an online platform where institutional investors provide equity capital to small businesses, is expanding into lending. The San Francisco-based com [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |