Subscribe Free
in Business & Finance

Boeing releases annual Current Aircraft Finance Market Outlook

Posted 12 December 2016 · Add Comment

Boeing said strength in the capital markets and innovative funding developments will provide airlines and lessors efficient aircraft financing solutions in 2017.

 

The ninth annual Boeing Current Aircraft Finance Market Outlook forecasts the sources of financing for new commercial airplane deliveries in the coming year and the industry’s overall delivery financing requirements for the next five years.

“We’re seeing increasingly diverse financier and investor activity in the aircraft financing industry, providing more options to meet most growth in funding needs,” said Tim Myers, president of Boeing Capital Corporation. “Access to commercial bank debt and continued participation from the capital markets in 2017 will allow airlines and lessors to capitalize on the strength of the aviation industry and robust global passenger traffic trends.”

Boeing forecasts continued strong demand for new commercial airplanes in 2017, resulting in about $126 billion in deliveries across the industry with potential to grow to $185 billion by 2021.

“Capitalising on the growth ahead requires regulations and policies that facilitate the efficiency and stability of the aircraft financing industry. Banking regulations that sensibly value aircraft assets and continued efforts to move toward global standardisation of transactions through the Cape Town Convention will help ensure long-term availability of aircraft financing,” Myers said. “Further, while the healthy financing environment has helped to absorb the impact of the lack of export credit in the short-term, history shows this is not sustainable.”

Highlights of the 2017 aircraft finance market outlook include:

  • Notable new funding sources are emerging from the Korean institutional market, regional banks throughout Asia Pacific and a rise in non-U.S. investor participation in enhanced equipment trust certificates (EETCs)
  • High volume in the leasing industry will allow new lessors to grow their fleets and established lessors to purchase new aircraft
  • Commercial bank volume will exceed capital market funding for both Boeing deliveries and the industry overall; this trend is primarily driven by the rising share of deliveries to China, where bank debt is the most prevalent source of financing
* required field

Post a comment

Other Stories
Advertisement
Latest News

Nouvelair pace of change accelerates

Nouvelair, a Tunisian private company operating charter and scheduled flights, will celebrate its 30th anniversary in 2019. Deputy general manager, Chokri Zarrad, shared his ambition for the company with Vincent Chappard.

World Aviation Safety Summit to establish dangerous goods handling strategies

The 6th Annual World Aviation Safety Summit (WASS) will provide a focus on approaches for handling dangerous goods, organizers of the event revealed today. Hosted by the Dubai Civil Aviation Authority, WASS 2018 is set to return for its

Swiss International Air Lines chooses Joramco as maintenance provider

Joramco and Swiss International Air Lines (SWISS) have signed a five-year agreement by which Joramco will perform C-Checks and HMV checks on the SWISS Airbus fleet, A320, A333 and A340.

Why the future of air travel must be digital

How will the aviation industry anticipate and respond to growing numbers of customers with changing habits and expectations? Mohammed Adnane Retmi, head of Orange Applications for Business indirect, Middle East, Africa and Russia

Apollo 15 command module pilot, Col. Al Worden, to attend Bahrain Airshow

In conjunction with the Bahrain International Airshow 2018, U.S. astronaut/scientist/inventor will address industry, military and student leaders, encouraging multilateral partnership to “break through barriers”.

Marrakech gears up for the sixth edition of the Marrakech Air Show

The sixth edition of the Marrakech Air Show, the largest African civil and military aviation event, will be held in Marrakesh between 24th and 27th of October at the Royal Air Force military base in Marrakesh.

DomainH_SK2808161118
See us at
MEBAA BT1004121218MAPS18_BT1207131118BIAS BT271017161118AviationShowBT1110141118AIME19BTA3005120219GATM BT1004061118Aviation Africa BT0607280219MarrakechAirshow BT2507241018