Friday 27 April 2018
$550bn ORDERS

Mideast needs 2,850 new planes in next 20 years

Istanbul, April 1, 2014

Boeing in its latest forecast said the Middle East will require an estimated 2,850 commercial jets, worth $550 billion over the next two decades as the region's carriers continue to surpass global air traffic and capacity growth rates.

The leading aircraft maker expects the worldwide market for commercial aircraft financing to remain strong as airlines continue to receive expected record levels of deliveries of new, fuel-efficient airplanes in 2014, said top company officials at its ninth annual regional airline planning seminar for financiers which concluded last week in Istanbul, Turkey.

Boeing provided the positive aircraft funding update at the seminar which attracted 30 financing executives from regional commercial banks, investment firms, leasing companies and customer airlines from throughout the Middle East, Europe, Africa and Central Asia.

The week-long program was a more convenient regional version of the manufacturer’s long-running Seattle-based educational program for financiers.

This year, Boeing was joined by executives from Turkish Airlines in the education process on how airlines determine their airplane fleet needs and finance them.

“Globally the liquidity balance looks good as the commercial aviation industry rebalances itself to move away from export credit support, due in part to its increased pricing, and more toward reliance on the commercial markets,” remarked Ron Glover, the regional managing director for Aircraft Financial Services at Boeing Capital Corp, the aircraft builder’s financing and leasing unit and host of the event.

Boeing said worldwide the major aircraft manufacturers were expected to deliver roughly $112 billion in new jetliners by year end to operators, creating opportunities for new entrants looking to invest in large aircraft.

“With record production rates continuing in response to genuine demand driven by higher fuel prices, timing couldn’t be better for investors wanting to enter the aviation space and benefit from its financial rewards,” Glover said.

Boeing pointed out that the industry was seeing a rare balance among the primary sources for new aircraft funding – aircraft leasing companies, commercial banks, the capital markets and export credit agency (ECA) support among them.

In addition, the current healthy aircraft financing market encompasses both well-known funding sources along with smaller regional commercial institutions, many entering aircraft financing for the first time.

Boeing cited the growth attained by investors in Japan, Russia, China and Latin America and called for particular attention to progress in the Middle East, as the region fulfills its potential as an emerging aircraft investment center.

“In the Middle East in 2013, 65 per cent of Boeing’s deliveries were financed by local Middle East banks”, revealed Glover.

“This is a significant increase over the last few years and a clear indicator that the region’s financiers thoroughly grasp the great investment opportunities associated with our commercial airplanes,” he added.-TradeArabia News Service

Tags: Middle East | Boeing | plane |

More Travel, Tourism & Hospitality Stories

calendarCalendar of Events