Boeing (NYSE:BA) has long been one of the biggest player in aircraft production, alongside its main competitor, Airbus, and the company has enjoyed record-breaking successes in the past year that have lead to it predicting a $100-plus billion financing market for jets in 2013.
Boeing has topped a year-to-date delivery record it set only two years ago when it delivered its 377th Boeing 737. The company also managed to break year-to-date and annual order records with the jet. Airbus is also setting records of its own in all-time year-to-date deliveries of its jet models.
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With record-setting performance, it’s no wonder Boeing sees the financing market growing to record-setting sizes.
The market is expected to grow mostly in commercial bank financing, as commercial banks step in to take on the reduced financing from export-credit agencies. Capital markets are also expected to grow by about 4 percent, to 14 percent of total jet financing. Commercial banks should finance 28 percent, with export-credit dropping to 23 percent, and cash purchases staying at about 25 percent.
Boeing’s own managing director of capital markets development, Kostya Zolotusky, added that aircraft financing is attractive and lucrative for bank investments — perhaps why Boeing expects commercial bank financing to rise.
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