Boeing, China banks to work together to expand financing involvement

Boeing has agreed with four of China’s leading banks to work together to expand the country’s involvement in aircraft financing both within China and elsewhere in the world. BCC President Walt Skowronski led a delegation to Beijing in mid-November to meet with officials from the Bank of China, the Industrial and Commercial Bank of China, China Development Bank and the Export-Import Bank of China.

“China is currently the fastest-growing aviation market in the world, and Chinese banks are taking on an increasingly important role in supporting aviation’s unparalleled growth here,” said Skowronski.

The BCC executives also joined with more than 40 government, banking and leasing officials in the first “reunion” of participants in the Boeing-China Leasing Seminar program that began in 2005.

Fall conferences fi nd investor interest in Asia and Middle East

Boeing Capital concluded its 2008 Financiers and Investors conference series with record crowds at events in the Asia Pacifi c and Middle East regions, a good indicator of investor interest, despite the global economic unrest.

The Hong Kong event attracted more than 90 financiers. “In addition to our traditional banks, the Chinese bank and leasing company participation was significantly more noticeable, reflecting the growing importance of the Chinese banking and leasing sector to the aviation industry,” said Foster Arata, BCC vice president and managing director for Asia Pacific and Greater China. BCC’s Middle East event two week before in Dubai yielded similar investor reaction. It attracted approximately 80 participants, twice the size of the fi rst event there in 2005.

“Investors who have capital available and are willing to enter the airplane financing market will find much less competition now,” said John Matthews, BCC managing director for the Middle East and Africa. “Investors can take advantage of short-term financial market dislocations to enhance the returns of their longer-term airplane portfolios.” Matthews also shared BCC’s view that aircraft, as high-value assets, are ideal for Islamic fi nancing where terms are governed by Shariah (or Islamic) laws.

Boeing hosts annual appraisers forum

Boeing Capital held its fifth annual appraisers forum in Seattle this fall. The session set attendance records and included 90 percent of the industry’s certifi ed airplane appraisers, along with leading bank analysts covering the airplane fi nancing sector.

“There was some concerned conversation at times given the economy but also the ability for the appraisers to talk with the bankers and us in real-time about how we see the market potential,” said Joe Ozimek, BCC managing director for aircraft programs and valuations.