Jetrader - January/February 2013 - 8

Aircraft Financing
Financing for new, used equipment should flow from established and new sources per Boeing’s 2013 current finance market outlook

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Kostya Zolotusky –
Boeing Capital managing director for capital markets development and leasing serves as lead forecaster for the manufacturer’s annual and well-respected air ﬁnancing market forecast. (Photo: Boeing)

Demand drives factory ﬂow, ﬁnancing –Boeing’s 787 Dreamliner production line in Everett, Wash. is seen here as the new 21st century jetliner program hit its predicted ﬁve-airplaneper-month production rate in November 2012. The 787 program is on track to reach its planned 10-per-month rate by late 2013. Production rate increases are the norm for Boeing and competitor, Airbus, as world air travel continues to see demand driven by growth and ﬂeet replacements accelerated by higher jet-fuel prices. (Photo: Boeing)

In 2012, the lives of those who build, buy or ﬁnance new commercial jets weren’t overly complicated by the availability of delivery ﬁnancing. 2013 promises to repeat that performance even amidst higher industry delivery rates and as new export-credit lending terms comes into play. That’s the position of Boeing, which in early December issued the manufacturer’s latest annual forecast for the global air ﬁnance markets that was born out of the 2008 ﬁnancing crisis. Boeing’s latest view portrays a world market where large aircraft deliveries continue at high levels, with a scarcity of future delivery positions, in response to sustained demand thus continuing to attract adequate capital at reasonable prices. The forecast is assembled by the company’s aircraft ﬁnancing and leasing unit, Boeing Capital Corp. A lot like 2012 — Its “stoplight” view of major capital providers (See Aircraft ﬁnancing environment chart) forecasts 2013 conditions generally on par with 2012. The outlook for commercial banks is somewhat improved and stable or improving conditions forecasted for lessors, private equity and, in particular, the capital markets. However, export credit remains a watch area as higher costs and stricter terms mandated by the new Aircraft Sector Understanding negotiated in 2011 by the Organization for Economic Cooperation and Development (OECD) takes full effect. According to Kostya Zolotusky, Boeing Capital managing director for capital markets development and leasing and its chief forecaster, 2012 didn’t deliver the surprise that many expected as a result of Europe’s lingering sovereign debt crisis.” “Everybody was focused on the demise of commercial bank debt due to the pressures in Europe. As we said all along, rumors of the European banks’ demise were greatly

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Jetrader - January/February 2013

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