Boeing Capital Sees $104 Billion in Total 2013 Leases

Boeing 737-MAX-7-8-9 ArtworkBoeing Capital Corp., the leasing and financing arm of Boeing Co. (NYSE: BA), released its aircraft finance market outlook for the next five years this morning. Boeing Capital expects total industry deliveries to reach $104 billion in 2013, with Boeing and Airbus taking about 95% of the sales.

The company's managing director said:

Stable demand growth, along with aircraft replacement requirements accelerated by higher fuel prices, should drive a rising appetite for new fuel-efficient airplanes. We expect that the underlying demand and a scarcity of new airplane delivery positions will ensure an adequate availability of capital at reasonable prices to fund new airplane deliveries for the industry in 2013.

A slight drag on the leasing business could come from new regulations that reduce export credit support typically supplied by governments. In 2012, export credits totaled 30% of expected total sales of about $95 billion. In 2013, export credits will contribute about 25% to the expected $104 billion in sales. Commercial banks and capital markets are expected to fill the gap and to support the increase in sales. Boeing expects only 5% of deliveries to be funded by buyers' cash holdings.

Boeing Capital expects aircraft leasing to expand from 40% of the world's fleet currently to 50% by the end of the decade.

Boeing Capital's outlook report is available here.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Aerospace & Defense Tagged: BA
Read Full Story

Markets

DJIA 21,080.28 -2.67 -0.01%
NASDAQ 6,210.19 4.94 0.08%
S&P 500 2,415.82 0.75 0.03%
NIKKEI 225 19,686.84 -126.29 -0.64%
HANG SENG 25,639.27 8.49 0.03%
DAX 12,602.18 -19.54 -0.15%
USD (per EUR) 1.12 0.00 0.01%
USD (per CHF) 0.97 0.00 0.02%
JPY (per USD) 111.32 0.01 0.00%
GBP (per USD) 1.28 0.00 0.01%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.