14-Mar-2013 3:03 PM

Boeing sees significant shift in aircraft delivery financing

Boeing stated (12-Mar-2013) the business of aircraft delivery financing is “shifting significantly”, as global commercial aircraft production is expected to surpass USD100 billion in 2013. Boeing Capital Corp VP/GM for aircraft financial services Tim Myers said the company is “seeing significant shifts in the financing strategies for how airlines pay for their airplanes". Mr Myers added that “most of these shifts in the long term are very positive for the industry. However, in the near term, we should expect the need to adjust to ensure that the financing transition for airlines occurs smoothly”. Boeing expects more geographic diversity in banking investments, and continued strong interest by bond investors seeking aircraft-backed assets. Boeing expects the shift toward the public market will require an adjustment of how the industry manages delivery financing, including partnering with new constituents like the rating agencies and fund managers. Mr Myers said “airlines will be leasing airplanes more than buying” to lower ownership costs and help cash flows. [more - original PR]

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