(MENAFN- AFP) US aerospace giant Boeing on Tuesday forecast strong demand for new commercial airplanes next year as aviation financing remains exceptionally liquid in a low interest-rate environment.
"We expect strong market demand for new, fuel-efficient airplanes to result in about $124 billion of commercial aircraft deliveries industry-wide in 2015, double the amount from 2010," Boeing said in its 2015 aircraft finance market outlook.
Funding for Boeing deliveries in 2015 is expected to reflect the broader industry, the Chicago-based company said. Funding would be roughly balanced between cash, commercial bank debt and capital markets amid an "unprecedented diversity of capital providers".
"The strength we're seeing in aircraft finance is largely the result of a healthy and balanced global demand for new aircraft, which is being driven by anticipated growth in passenger traffic, record airline profitability and the continuation of a replacement cycle to improve the fuel and performance efficiency of the global fleet," said Tim Myers, vice president and general manager Aircraft Financial Services for Boeing Capital Corporation.
Continued strength in the main commercial aircraft finance sectors in 2015 should lead to historically low levels of export credit usage, Boeing said.
Commercial bank debt and the capital markets would account for a combined 60 percent of airline deliveries.
Boeing forecast financing growth would moderate over the next few years, with more than $120 billion expected to be needed for deliveries in 2016 and $156 billion in 2019.
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