International bank crisis puts spotlight on ECA funding for aircraft

(flightglobal.com, Sutton, 22 September 2008) "The market is set to go through a radical change as the number of active banks in aviation finance has shrunk to about 30, down from 50 in the last downturn. The tightening market will inevitably see the airframers moving again into aircraft financing, many believe... In terms of funding sources, Export Credit Agency financing is the only indicator that has remained "green or satisfactory" according to the Boeing Capital Corporation chart of capital providers over the past year. Airbus estimates ECA financing will account for 17% of this year's deliveries but anticipates ECAs will slightly increase support next year. [Airbus] is predicting a rise to about the 20% level."