Boeing says strength in the capital markets and innovative funding developments will provide airlines and lessors efficient aircraft financing solutions in 2017.
“We’re seeing increasingly diverse financier and investor activity in the aircraft financing industry, providing more options to meet most growth in funding needs,” Tim Myers, president of Boeing Capital Corp., said. “Access to commercial bank debt and continued participation from the capital markets in 2017 will allow airlines and lessors to capitalize on the strength of the aviation industry and robust global passenger traffic trends.”
Boeing forecasts continued strong demand for new commercial airplanes in 2017, resulting in about $126 billion in deliveries across the industry with potential to grow to $185 billion by 2021.
The predictions were made during the ninth annual Boeing Current Aircraft Finance Market Outlook, which forecasts the sources of financing for new commercial airplane deliveries in the coming year and the industry’s overall delivery financing requirements for the next five years.
Highlights of the 2017 aircraft finance market outlook included reports that notable new funding sources are emerging from the Korean institutional market and regional banks throughout Asia Pacific, and a rise in non-U.S. investor participation in enhanced equipment trust certificates.