Boeing: Financial sector to provide USD143bn in aircraft funding in 2019

Boeing released (06-Dec-2018) its annual 'Current Aircraft Finance Market Outlook' study predicting that the financing industry is set to provide approximately USD143 billion in aircraft funding in 2019 and potential to grow to more than USD180 billion by 2023. Other highlights include:

• Funding for deliveries is expected to be balanced between commercial bank debt and capital markets and cash;
• Airlines and lessors are expected to have some of their "lowest historical costs of financing";
• Capital markets continue to grow, bolstered by unsecured borrowing;
• Aircraft leasing has grown to represent over 40% of in-service commercial aircraft ownership;
• Export credit agencies remain a small but critical funding source, particularly in the US;
• More participants and investment in new deliveries and the used aircraft market.

Boeing Capital Corporation president Tim Myers stated: "We continue to see innovations and first-time entrants into the market, providing increased capacity for funding new deliveries as well as pre-delivery payments, mezzanine debt financing and the secondary aircraft market". [more - original PR]