Boeing Home Your business and organization name
img1
Current Aircraft Finance Market Outlook
2014-2018
img1
Current Aircraft Finance Market Outlook
2014-2018
img1
Current Aircraft Finance Market Outlook
2014-2018

The Current Aircraft Finance Market Outlook for 2014 can be described as one of continued realignment and balance. A declining reliance on export credit agencies (ECA) and rapid expansion of the capital markets is expected to result in an almost even balance among the primary aircraft finance markets – leasing companies, capital markets, commercial banks and ECAs.

We believe the strength of aircraft  finance is related to the demand for new, fuel-efficient aircraft driven by stable air travel growth and an accelerated replacement cycle in response to higher fuel prices. We also see a rally in the secondary aircraft market as evidenced by an expanding number of participants, many of whom are seasoned aircraft  financiers looking to leverage collateral expertise in a more nuanced and better-yielding market. One market segment where we continue to see pressure is air cargo. The good news is that air cargo volumes are growing and underutilized air freighter capacity is gradually being absorbed.

Our industry can be proud of its track record of debating and addressing real and potential risks. Material concerns about aircraft economic lives and the balance between aircraft supply and demand were addressed openly, achieving broad consensus. Today, we continue to watch how global monetary policies could potentially impact aircraft  finance. We believe the industry is well positioned for the possible outcomes of inflation, higher interest rates or a combination of both. Asset portfolios are excellent inflation hedges and current aircraft  finance costs are at historical lows.

We expect air travel and aircraft demand to remain closely correlated to global economic growth with less impact from derivative drivers like interest rates and fuel prices. Combined with strong aircraft replacement demand, we expect healthy finance markets to provide adequate capital at reasonable prices to fund new airplane deliveries for the industry in 2014.

  we can translate the forecast into sensible business for all constituents.


Learn more»