Boeing Sees More Growth in Aircraft Financing Demand

(American Machinist, Cleveland, 9 December 2018) Boeing is forecasting strong demand for new commercial airplanes will continue in 2019, with deliveries by major OEMs totaling about $143 billion, and growing to $180 billion by 2023. The commercial-aircraft market’s strong fundamentals also are drawing new participants and investment in used aircraft. The figures and projections are presented in Boeing’s yearly Current Aircraft Finance Market Outlook report, a five-year forecast of the commercial aircraft sector’s financing trends. Boeing predicts that new-aircraft deliveries will be funded by commercial bank debt, capital markets, and cash. Aircraft leasing agents, which represent over 40% of commercial aircraft ownership now, will be supported by historically low financing costs. Export credit also will remain a critical funding source, particularly in the U.S., Boeing added. The JD SUPRA news service has pointed to three new developments in aircraft financing and leasing, AFIC, Balthazar and GATS, which have grown out of the recent drying up of export credit support for Boeing and Airbus financings.