SAN DIEGO, March 18, 2014 /PRNewswire/ -- Boeing [NYSE: BA] expects the market for financing new aircraft to remain strong as airline customers continue to demand for new, fuel-efficient airplanes.
"Globally the liquidity balance looks good as the industry rebalances itself to move away from export credit support, with its more expensive pricing, and more toward reliance on the commercial markets," said Tim Myers, vice president/general manager for Aircraft Financial Services at Boeing Capital Corp., the aircraft builder's financing and leasing unit.
Myers was among aircraft financing panelists at the annual ISTAT Americas conference for global professionals working to connect commercial aircraft financing needs with those seeking aircraft investments.
Boeing said that airplane financing globally is experiencing a rare balance among primary delivery financing sources – leasing companies, commercial banks, the capital markets, export credit agency (ECA) support and private equity and hedge funds among them – as global 2014 deliveries head toward an expected roughly $112 billion total."The new global agreement governing export financing is working. We're seeing balance between ECA and commercial market support. We have a strong presence by new players in the marketplace coming from the capital markets, growth in private placement transactions and new leasing firms coming into the space," Myers said. Boeing noted that the overall healthy new-aircraft financing market encompasses well known financing sources and smaller regional commercial institutions, many entering aircraft financing for the first time. "We're seeing growth in Japan, Russia, China and Latin America. In the Middle East, for example, 65 percent of Boeing's deliveries are now being financing by local Middle East banks," Myer said. "It reflects a remarkable global diversification that would not be possible if the markets didn't have a fundamental belief in the strength of the air-travel market and the product value of new, fuel-efficient airplanes as fuel prices remain high." Speaking to the aircraft trading audience, Boeing shared its latest analysis on why used-aircraft financing has seen higher pricing than for new deliveries.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV