Boeing sees export credits waning as aircraft funding source

More commercial jet buyers will tap rapidly-expanding capital markets to finance $112 billion of jet sales in 2014 as state-backed export credits become pricier and more politically sensitive, Boeing Co (BA) said on Tuesday. Money from government-backed export credit agencies (ECA), once used to pay for the bulk of jet deals, will make up 18 percent of plane financing next year, down from 23 percent in 2013, the U.S. aircraft maker said in an annual forecast. “Higher fees and higher equity requirements are driving more customers to other markets …(and) export credit has a higher – than what we’ve seen historically – political component to it,” said Kostya Zolotusky, managing director of capital markets development and leasing at Boeing Capital Corp. Airbus and Boeing this month looked set for a photo finish in their annual order race this year, although Boeing remained ahead on deliveries, which drive revenue and are the most widely used benchmark for ranking the top two jetmakers.


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