Boeing forecasts strong growth for aircraft financing in 2019

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Aircraft financing will continue to grow strong next year as about 143
billion U.S. dollars will be invested in meeting the demand for new commercial
airplanes, U.S. top aircraft manufacturer Boeing Company (Boeing) said
Thursday.

World major aircraft manufacturers will see the delivery of new airplanes
increase constantly in the next few years, which will be valued at about 180
billion dollars by 2023, Boeing said in the annual Current Aircraft Finance
Market Outlook (CAFMO) released Thursday.

Boeing said funding for deliveries is expected to be balanced between
commercial bank debt and capital markets and cash, and airlines and lessors will
have some of their lowest historical costs of financing.

"The aircraft financing market remains healthy, with adequate commercial
liquidity, providing a wide range of efficient options available for our
customers," said Tim Myers, president of Boeing Capital Corporation.

2019 will be another year of balanced funding for commercial airplane
deliveries, which reflects the broader industry primarily split between bank
debt, capital markets and cash, Myers said.

Boeing said aircraft leasing has grown to represent more than 40 percent of
in-service commercial aircraft ownership, and export credit agencies remain a
critical funding source, particularly in the United States.

Myers said innovations will continue in the coming year and more first-time
entrants will tap into the aviation market, which will expand the capacity for
funding new deliveries as well as pre-delivery payments, mezzanine debt
financing and the secondary aircraft market.

The Boeing report also forecasts that more investment will go to new
deliveries of aircraft and the secondary aircraft financing market.

(CHINA PLUS)