Dec. 4, 2012
/PRNewswire/ -- Boeing (NYSE: BA) projects the world's airlines should see reasonable liquidity and pricing for new-aircraft delivery financing in 2013 even as jet builders ramp up production to meet demand, the manufacturer announced here today in issuing its fifth annual finance market forecast.
"We expect that despite economic and political challenges, global air travel will again demonstrate its remarkable resilience in 2013. The industry's global growth and airlines' fleet replacements, accelerated by higher fuel prices, should keep demand stable and attract sufficient financing," said
, managing director of capital markets development and leasing at Boeing Capital Corp., the plane maker's financing and leasing unit which develops the forecast.
The encouraging report comes amid lingering economic uncertainties and as higher costs for eligible airline borrowing using government export credit financing go into effect in 2013.
The manufacturer forecasts total industry jetliner deliveries at
in 2013, with 95 percent of that expected to be split between Boeing and Airbus.
Boeing foresees 2013 financing conditions on par with 2012, and predicts the largest funding source – commercial banks – should strengthen their investment. Among other major players, capital markets are expected to grow as a funding source for U.S. airlines and expand to also serve non-U.S. airlines and leasing companies. Meanwhile, leasing firms are expected to grow in their delivery share and gain access to more diverse sources of equity and leverage.
This year began amid concerns that
's commercial banks, a primary aircraft financing source, would pull out of the market due to the continent's economic crisis. However, Zolotusky said those fears did not materialize, and in 2013 the company expects that
's banks will remain active because the aircraft space is one of the most attractive and high-performing sectors for bank investments.
Boeing said regional commercial banks – in places like
– stepped back into or entered aircraft financing in 2012 and expect to remain in 2013.
In announcing the need for increased financing for rising industry deliveries, the company said market data clearly supports the higher production pace.