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Boeing forecasts strong demand for new commercial airplanes

By Swati Deshpande,

Added 12 December 2016

Financing industry to provide approximately $126 billion in aircraft funding in 2017

Boeing says strength in the capital markets and innovative funding developments will provide airlines and lessors efficient aircraft financing solutions in 2017.

The ninth annual Boeing Current Aircraft Finance Market Outlook forecasts the sources of financing for new commercial airplane deliveries in the coming year and the industry's overall delivery financing requirements for the next five years.

"We're seeing increasingly diverse financier and investor activity in the aircraft financing industry, providing more options to meet most growth in funding needs," said Tim Myers, president of Boeing Capital Corporation. "Access to commercial bank debt and continued participation from the capital markets in 2017 will allow airlines and lessors to capitalize on the strength of the aviation industry and robust global passenger traffic trends."

Boeing forecasts continued strong demand for new commercial airplanes in 2017, resulting in about $126 billion in deliveries across the industry with potential to grow to $185 billion by 2021.

"Capitalizing on the growth ahead requires regulations and policies that facilitate the efficiency and stability of the aircraft financing industry. Banking regulations that sensibly value aircraft assets and continued efforts to move toward global standardization of transactions through the Cape Town Convention will help ensure long-term availability of aircraft financing," Myers said. "Further, while the healthy financing environment has helped to absorb the impact of the lack of export credit in the short-term, history shows this is not sustainable."

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