ME investment in Boeing doubles in 2012
Istanbul, April 2, 2013
Middle Eastern airlines last year invested about $4 billion in financing for new Boeing products from regional sources, a figure that’s nearly double what it was in 2011, according to a top executive of the aircraft manufacturer.
Boeing has worked closely with Middle East financial institutions to increase their aircraft financing participation, added Ron Glover, regional managing director at Boeing Capital Corporation, the airplane builder’s financing and leasing unit, and the host of a regional seminar for an audience of aircraft financiers in Istanbul recently.
Airlines worldwide are expected to take delivery of more than $100 billion in new jetliners from major manufacturers by year end, creating opportunities for new entrants looking to invest in large aircraft, he added.
Expected record commercial aircraft deliveries in 2013 are helping fuel strong interest among investors in the Middle East, Africa, Europe and Central Asia, added Glover.
More than 35 financiers from regional commercial banks, investment firms, leasing companies and customer airlines were on hand for the week-long event.
“As production rates continue to head upwards to meet genuine air-travel market demand, the timing couldn’t be better for entering the aviation space and reaping its financial rewards,” said Glover.
This was the eighth year for Boeing’s regional event, offered as a convenient alternative for financiers to attend the leading industry education event otherwise normally only offered in the US.
Co-presented by experts from Boeing Capital and the Boeing Commercial Airplanes marketing staff, the experience provides an inside look at how airlines evaluate the jetliners they purchase.
Financiers learn about the industry’s underlying dynamics and key decision drivers augmented by actual experiences of Boeing airline customers, this year including Emirates, Etihad, Royal Jordanian and Turkish Airlines.
In 2012, Boeing entered into the region’s first working-together agreement for aircraft financing and leasing cooperation with the National Bank of Abu Dhabi (NBAD).
Boeing’s latest market outlook reports airline industry growth in the Middle East is expected to continue over the next 20 years. The 2012 outlook valued the Middle East market at $470 billion over the next two decades, which translates into an expected need for 2,370 commercial jets. – TradeArabia News Service