|
The global market for aircraft financing is headed toward healthy structural changes, but first it must weather another tough year, according to a Boeing Company (BA) executive, Dow Jones reported.
Boeing expects a worldwide need for US$62 billion for airlines to buy new commercial aircraft in 2010, down from $68 billion this year, as fewer aircraft get delivered to airlines, Kostya Zolotusky, managing director, capital markets development at Boeing Capital said.
Boeing Capital unveiled its forecast for the 2010 aircraft lending market. Boeing and Airbus will be asked to provide less financing support to customers in 2010 than in 2009, according to the forecast.
At the beginning of this year, some bankers believed there could be a funding gap of $10 billion or more, as bone-dry credit markets forced European banks out of the aircraft-finance business. Credit woes also hit the parent companies of many aircraft lessors, resulting in big players like International Lease Finance Corp., a unit of American International Group (AIG), being put up for sale.
But the capital markets opened up this year, allowing airlines to raise cash, much of which will finance deals next year. As well, regional banks in growth markets like China and the Middle East contributed most of the $18 billion in bank financing. Government export-import banks in the US and Europe contributed $21 billion of aid this year.
Boeing and Airbus ended up plugging a relatively small financing gap of $2.5 billion this year. Boeing said it will help customers with $800 million of financing in 2009 and now sees a need for less than that in 2010.
Boeing expects 2010 to be challenging, as Europe, the historical mainstay for aircraft bank lending, remains on the sidelines. Zolotusky said capital markets, mainly in the US, and regional banks in China, Asia and the Middle East will contribute to financing at similar levels to 2009, as will government banks.
|
Back:
Next:
