16 DECEMBER 2013
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Boeing has released its seventh annual aircraft finance market forecast, projecting that investors and financiers in the major aircraft finance markets will deliver balanced liquidity to fund what is expected to be another record global jetliner production year in 2014.
"Realignment and balance are the words that best describe 2014's aircraft financing environment," said Kostya Zolotusky, managing director of capital markets development and leasing at Boeing Capital Corp. "We anticipate adequate financing at reasonable prices as the industry works to respond to balanced global customer demand and an accelerated replacement cycle resulting from higher fuel prices."
Boeing forecasts industry jetliner deliveries in 2014 totalling US$112 billion, with 95% of that expected to be split between Boeing and Airbus.
The forecast noted the declining use by airlines of export credit agency (ECA) financing from the Export-Import Bank and the rapid expansion of commercial aircraft-backed bond issuances. According to the report, these factors are expected to result in an almost even balance among primary aircraft financing sources, including aircraft leasing companies, commercial banks, the capital markets and ECAs.
The report also highlighted an improvement in used aircraft financing after several years in which higher fuel prices and other economic factors disrupted the balance between the new and used jetliner markets. www.boeing.com/boeing/bcc/
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