Boeing released (07-Dec-2017) its Current Aircraft Finance Market Outlook (CAFMO) forecasting USD139 billion will be needed to finance new aircraft deliveries in 2018, up 13.9% year-on-year. The aircraft manufacturer anticipates “diverse markets and participants will continue the upward trend in availability of efficient financing for record new aircraft deliveries” in 2018. Boeing forecast continued strong demand for new commercial aircraft could see the need for aircraft financing grow to USD189 billion by 2022. Other key highlights include:
- Commercial bank debt is likely to again finance the largest share of Boeing deliveries;
- Capital markets and cash should remain viable sources of financing;
- Export credit is expected to regain modest market share as export credit agencies are used as a selective source of financing;
- Innovations in aircraft finance, like the newly created Aircraft Finance Insurance Consortium non-payment insurance market, are expected to grow in 2018.