24-Sep-2010 11:57 AM

Middle East source of opportunities for aircraft financing capital: Boeing Capital

Boeing Capital Corp MD Middle East and Africa John Matthews stated the Middle East continues to emerge as a source of opportunities for aircraft financing capital, but added that chances for additional aircraft investment remain untapped, particularly as global economic conditions further improve (albawaba, 23-Sep-2010). Mr Matthews stated that the environment continues to improve for the various sources for aircraft financing - such as commercial banks, export credit agencies and private equity - adding that all-in pricing for aircraft funding remains at historic lows. Boeing also credits the Middle East with helping develop new industry financing sources, adding that it believes "airplanes are ideal for Islamic financing, since a fundamental criterion is that such investments be asset based".

Boeing Capital Corp: "The Middle East remains a robust area for the aircraft investor as the region continues to diversify its funding sources, but the door remains wide open to profitable opportunities. Air travel here is stronger than most other regions, which creates great opportunity for willing investors in aircraft financing ... The markets are much stronger than they were and they continue to gradually improve. There is no talk of a gap in terms of required funding and new planes continue to deliver on time with less difficultly than last year," John Matthews, MD Middle East and Africa. 

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