Boeing forecasts strong growth for aircraft financing in 2019

2018-12-07 09:34

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Aircraft financing will continue to grow strong next year as about 143 billion U.S. dollars will be invested in meeting the demand for new commercial airplanes, U.S. top aircraft manufacturer Boeing Company (Boeing) said Thursday.

World major aircraft manufacturers will see the delivery of new airplanes increase constantly in the next few years, which will be valued at about 180 billion dollars by 2023, Boeing said in the annual Current Aircraft Finance Market Outlook (CAFMO) released Thursday.

Boeing said funding for deliveries is expected to be balanced between commercial bank debt and capital markets and cash, and airlines and lessors will have some of their lowest historical costs of financing.

"The aircraft financing market remains healthy, with adequate commercial liquidity, providing a wide range of efficient options available for our customers," said Tim Myers, president of Boeing Capital Corporation.

2019 will be another year of balanced funding for commercial airplane deliveries, which reflects the broader industry primarily split between bank debt, capital markets and cash, Myers said.

Boeing said aircraft leasing has grown to represent more than 40 percent of in-service commercial aircraft ownership, and export credit agencies remain a critical funding source, particularly in the United States.

Myers said innovations will continue in the coming year and more first-time entrants will tap into the aviation market, which will expand the capacity for funding new deliveries as well as pre-delivery payments, mezzanine debt financing and the secondary aircraft market.

The Boeing report also forecasts that more investment will go to new deliveries of aircraft and the secondary aircraft financing market.
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