On Air Now

Tune in to Listen

93.9 FM Hibbing, MN

Weather

Current Conditions(Hibbing,MN 55746)

More Weather »
42° Feels Like: 37°
Wind: SE 8 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Today

Partly Cloudy 58°

Tonight

Showers Late 44°

Tomorrow

AM Showers 58°

Alerts

  • 0 Severe Weather Alerts
  • 0 Cancellations

Boeing sees aircraft finance market rising to $112 billion in 2014

An Airbus A380 aircraft of Deutsche Lufthansa (top) takes of passing over an Airbus A380 aircraft of Emirates at the ILA International Air S
An Airbus A380 aircraft of Deutsche Lufthansa (top) takes of passing over an Airbus A380 aircraft of Emirates at the ILA International Air S

LONDON (Reuters) - Commercial jet buyers are set to turn to rapidly-expanding capital markets for more financing in 2014, as the value of jet sales rises by about 7.7 percent to $112 billion, Boeing Co forecast on Tuesday.

Capital markets will account for about 22 percent of total jet financing, up from 14 percent this year and just 3 percent in 2009, Boeing said in an annual forecast.

These markets, whose fast expansion has been helped by the Cape Town Treaty facilitating investor interest in non-US airlines, are making up for the sector's declining reliance on export credit, which will finance only 18 percent of sales in 2014, down from 23 percent this year.

Commercial banks are likely to provide 25 percent of financing next year, compared to 28 percent this year, Boeing said. Chinese banks will overtake Japanese banks as the second-largest providers of bank debt at 23 percent, after the Europeans at 25 percent.

Cash purchases are expected to fall to 23 percent, down from 25 percent of the total, Boeing said.

Most of the $112 billion worth of passenger jets the industry is forecast to deliver in 2014 is divided between Boeing and Airbus .

(Reporting by Brenda Goh, Editing by Paul Sandle)

Comments