Washington, US: New-commercial airplane deliveries by all aircraft manufacturers is forecast to total US$139 billion in 2018, a rise of US$17 billion from 2017, and expected to grow to US$189 billion by 2022, according to the annual Current Aircraft Finance Market Outlook report by aircraft manufacturer Boeing.
Diverse markets and aerospace companies are expected to continue the upward trend in the availability of efficient financing for record new aircraft deliveries in 2018.
“Financiers and investors continue to be attracted to the aircraft market, and part of that appeal is because it’s a growth business with stable returns,” said Tim Myers, president of Boeing Capital Corporation.
The strength in the aircraft finance market comes from the recent year-over-year growth of new airplane deliveries across the industry.
The growth in need for aircraft financing is expected to be met in a variety of ways, said Mr Myers. “Looking ahead to 2018, traditional funding means like commercial banks and capital markets will continue to be the largest sources of financing. We’re also seeing innovations in new markets, like insurance and global export credit, to help meet those delivery funding needs.”