Boeing projects USD126bn needed to finance aircraft purchases in 2017

Boeing released (10-Dec-2016) its 'Current Aircraft Finance Market Outlook', stating strength in the capital markets and innovative funding developments will provide airlines and lessors efficient aircraft financing solutions in 2017. Overall, Boeing forecasts continued strong demand for new commercial aircraft in 2017, resulting in about USD126 billion in deliveries across the industry with potential to grow to USD185 billion by 2021. Key highlights include:

• Notable new funding sources are emerging from the institutional market in South Korea, regional banks throughout Asia Pacific and a rise in non-US investor participation in enhanced equipment trust certificates (EETCs);
• High volume in the leasing industry will allow new lessors to grow their fleets and established lessors to purchase new aircraft;
• Commercial bank volume will exceed capital market funding for both Boeing deliveries and the industry overall; this trend is primarily driven by the rising share of deliveries to China, where bank debt is the most prevalent source of financing. [more - original PR]