Boeing sees funding for aircraft buyers remaining strong
By Sarah Young
LONDON (Reuters) - Boeing Co (BA.N: Quote) sees no let-up in the strong supply of funding available to help commercial jet aircraft buyers acquire the $124 billion worth of airliners expected to be delivered next year, the U.S. planemaker said in its annual forecast.
New aircraft deliveries have risen steadily over the last five years, with the $124 billion spending forecast for 2015 double the value of deliveries in 2010.
"The financing today ... is continuing to be very plentiful for airlines," Boeing Capital Corporation's vice president for aircraft financial services, Tim Myers, told reporters at a news conference.
"We're seeing the most volume we've ever seen in this market right now."
Airlines were benefiting from the liquidity of the jet financing market, an increasing diversity of sources available, competition between lenders and low interest rates.
Demand for new jets is expected to continue to rise, driven by emerging markets such as China. In September Airbus (AIR.PA: Quote), Boeing's main rival, raised its 20-year forecast for jet demand by 7 percent to 31,400 passenger and freighter aircraft worth some $4.6 trillion at list prices.
Lenders into the market were attracted by the anticipated growth in passenger traffic, record airline profitability and the strong need amongst some airlines to replace their fleet with more fuel-efficient jets.
Capital markets are a growing source of funding for aircraft deliveries, forecast to support nearly a third of deliveries next year, up from just 3 percent in 2009. Continued...