in Business & Finance

Boeing forecasts new participants and more options for 2016 aircraft financing

Posted 22 January 2016 · Add Comment

Boeing has said airlines and lessors will continue to have access to efficient funding at attractive pricing throughout 2016 as new participants enter the aircraft financing industry and current participants innovate and provide more options.

The eighth annual Boeing Current Aircraft Finance Market Outlook, released today, 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. 

 “The sustained strength of the aircraft finance markets is being driven largely by healthy aviation industry fundamentals and balanced supply and demand for commercial aircraft,” said Tim Myers, president of Boeing Capital Corporation. 

“Passenger traffic is growing above long-term trends, airplane utilisation and load factors continue to rise, replacement demand remains strong and global airlines are producing record operating results and profits. With these conditions prevailing, financiers continue to see commercial aircraft as a good investment and that’s resulting in good access to efficient funding for our customers.” 

Boeing forecasts continued strong demand for new commercial airplanes in 2016, resulting in about $127 billion in deliveries across the industry. 

“We’ve seen a number of new entrants in the aircraft financing industry over the past few years and we expect to see more this year as commercial aircraft continue to be seen as attractive, stable assets,” said Myers. “One of the exciting things to watch this year will be the way existing participants respond to the new entrants, driving innovation and creating more funding options for airlines and lessors.” 

Key elements of the 2016 finance market outlook include: 

    The trend of lessors selling all or part of their portfolios to participants in the capital markets to create capacity for new acquisitions and opportunities for future growth should continue, thanks to ongoing innovation within the leasing industry

    Lessors are expected to support about 40 percent of all deliveries, securing most of their leverage through the capital markets

    Capital markets and banks should account for approximately two-thirds of delivery funding

    Commercial bank debt will continue to play a vital role in aircraft finance, but tighter global regulations and U.S. dollar pressures (in certain markets) may constrain the sector’s volume

    Export credit usage should continue at historically low levels, reflecting the current strength of commercial markets

     

 

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Emirates service to Tunis becomes daily

Emirates has reaffirmed its commitment to Tunis by increasing the frequency of flights between Dubai and Tunis from six to seven a week starting 30th October 2017.

TIACA expands global reach with new board member from Africa

A new board member, representing the ground handling and cargo carrier sectors of Africa has been appointed to the TIACA Board of Directors.

Global Aviation to lease an A300 freighter

Libya's Global Aviation will shortly wet-lease an A300C4 freighter from Moldova's Air Stork , reports ch-aviation.

New CEO of SAA to start role in November

South African Airways (SAA) has announced the start date of its new Chief Executive Officer (CEO) at the airline's headquarters, Airways Park, Johannesburg, as November 1, 2017.

Construction at terminal 3 at Accra-Kotoka International effects certain operators

With construction work on Accra-Kotoka Internationals new Terminal 3 flagship project moving into top gear some operators at the airport have had to change location to facilitate the development.

Sanjeev Gadhia elected to TIACA board

Africa has its first representative on the board of TIACA (The International Air Cargo Association, USA) which is the largest air-cargo association in the world.

AfBAC Expo SK2017
See us at
AIMA Africa 2017GroundHandling BT0303280917Global Aerospace BT28218ACI Africa BT77181017Aviation Africa BT18418AfBAC Expo BT2017