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

Sudan's glimmer of hope

For a decade, Sudan Airways has struggled to maintain services in the face of US sanctions against the African nation. Those sanctions have now been eased, but the airline still faces problems, as deputy general manager, Yasir Timo,

Aero South Africa set to go

Messe Friedrichshafen, the global show for general aviation, has set its sights on a new destination....South Africa.

Boeing and FedEx express announce order for 24 medium and large freighters

Boeing and FedEx Express today announced a new order for 12 767 Freighters and 12 777 Freighters as the world's largest air cargo carrier continues to invest in the industry's most capable freighters to better serve its customers.

Fastjet increases flights between Harare and Victoria Falls

Fastjet will increase its flights between Harare and Victoria Falls by two additional frequencies with effect from 2 July 2018, reports Afritraveller.

The battle for survival

More than 50 local airlines have emerged and collapsed since Nigeria’s independence in 1960 and, as Chukwu Emeke reports, the cycle looks set to continue.

Honeywell research shows growing investment in 'connected' technology

The commercial aviation industry is at the beginning of a technology investment wave fuelled by advancements in high-speed, in-flight Wi-Fi connectivity according to a new report by Honeywell released today.

TAA SK0902311218
See us at
AirCargoAFA_BT220318210219AAD2018 BTGroundHandling BT2205130918