Aircraft finance and export credit agencies
(ECA Watch, Ottawa, 29 January 2009) A plethora of articles this month show the importance of official export credit support for commercial aircraft sales. German, French and U.S. ECAs are offering more support to buyers of new Airbus and Boeing commercial aircraft amid fears that the reluctance of world banks to lend may be undermining the plane manufacturer's sales.
Airbus Flies in the Face of Recession Winds
BusinessWeek - USA
Airbus is counting on European export credit agencies—quasi-governmental banks that help finance export deals—to provide financing for about half of Airbus deliveries this year, twice the normal level... Airbus, in contrast to its U.S. archrival, Boeing (BA), is predicting it can fly through the turbulence with relatively little disruption. On Jan. 9, Boeing said it would lay off 4,500 workers, or 6.7% of its commercial jet workforce, on expectations of a sharp downturn in 2009. Airbus says it expects no layoffs—and it's forecasting that it will deliver almost as many planes this year as it did in 2008, when it shipped a record 483 aircraft. Airbus does expect a big drop in new orders this year and next. (Boeing, crippled by a two-month strike, delivered only 375 aircraft in 2008.)
Aircraft lessors hunker down for grim 2009
Flight International - USA
Consolidation is widely considered a potential salve to the leasing sector's wounds... However, the unavailability of credit could seriously complicate potential mergers and acquisitions, including insurance giant AIG's disposal of aircraft leasing arm ILFC and the sale of bankruptcy-hit Allco Finance... With consolidation problematic, lessors are likely to train their sights on export credit agencies and airframers as they look to ease their liquidity worries...
US export credit agency Ex-Im Bank has already expressed its willingness to provide direct loans, and European counterparts such as France's Coface and Germany's Euler Hermes can be expected to take a similar line... Meanwhile, Airbus expects to double the amount of vendor financing that it provides, and Boeing's financing arm - Boeing Capital - has filed a shelf registration with the US Securities and Exchange Commission to sell up to $5 billion in debt securities.
Airbus suffers sharp fall from 2008 orders
Financial Times - London,England,UK
Airbus on Thursday warned that its commercial aircraft orders could shrink by two-thirds this year, as airlines battle against falling traffic and difficulties in financing new deliveries... Airbus was expecting greater backing from the leading European export credit agencies to guarantee new aircraft financing
Airbus expects export credit agency financing to double in 2009
Flight International - USA
By Max Kingsley-Jones Airbus expects export credit agency financing of new airliner deliveries this year will reach almost double the level of the boom years before the global financial crisis... One development of the credit squeeze has been an increase in leasing activity.
Bigger Role for Ex-Im Guarantees in Jetliner Sales
Wall Street Journal - USA
The U.S. Export-Import Bank, hoping to alleviate the effects of the
credit crunch, plans to boost its guarantees for Boeing Co. jetliner
sales by almost 50%, to as much as $9 billion this year. But with lenders now skittish about funding a vast array of borrowing, the US Export-Import Bank and comparable export credit agencies in other countries are proving vital to international transactions.
Airlines and lessors face decreasing pool of capital
Flight International - USA
No doubt aircraft manufacturers, helped by European export credit agencies and the US Export-Import Bank, will provide financial support to the airlines. But they will also be called on to provide financial aid to the
operating lessors and to a level perhaps never seen before. But even
so, this support is unlikely to be enough to fund this year's $65-70
billion new aircraft financing bill as capital will also be needed for
refinancings, used aircraft deals and various corporate purposes.
EADS shares up after signs of French govt support
guardian.co.uk - UK
PARIS, Jan 26 (Reuters) - Shares in Airbus parent EADS rose
on Monday on signs the French government was preparing to inject
5 billion euros ($6.5 billion) into banks to help finance the
purchase of airplanes... Although not presented as a direct bailout, the plan would
be the first significant government package directed at the
aerospace industry, one of France's biggest export earners and
source of thousands of high-tech jobs... Les Echos said the state would inject the money into banks with a record of lending to the aerospace industry and named Calyon, Societe Generale, BNP Paribas and Natixis.
Germany to join France in credit offer to Airbus buyers
Monsters and Critics.com - USA
Berlin - Germany joined France Tuesday in offering credit to buyers of new Airbus planes amid fears that the reluctance of world banks to lend may be undermining the plane manufacturer's sales. Germany's federal bank, KfW, and export credit guarantees agency, Hermes, will enable customers to keep buying Airbus jets.
French aerospace aid plan cheers Airbus
guardian.co.uk - UK
PARIS, Jan 26 (Reuters) - European planemaker Airbus said a French plan to provide up to 5 billion euros ($6.5 billion) to support plane purchases would help secure aircraft deliveries as government aid for the ailing economy spreads beyond banks and cars. France's trade minister defended the move, saying it would not distort competition and that the state was not giving money directly to Airbus, owned by Franco-German aerospace group EADS . The German government said it was unaware of the plan.
AerCap Signs $1.4 Billion Facility Agreement for A330 Financing
PR Newswire (press release) - New York,NY,USA
Calyon arranges KLM export credit
Trade Finance (subscription) - London,UK
Calyon, acting as arranger and agent, has closed a $425 million export credit financing of two 777-300ERs for KLM.