Boeing Forecasts Sufficient Financing for Rising Global Aircraft Deliveries

 Boeing Forecasts Sufficient Financing for Rising Global Aircraft Deliveries

- Air-travel resilience, stable demand should support funding for $104 billion
in 2013 deliveries

- Most funding sources expected to improve or be stable despite economic

- Indicators show that global aviation remains healthy, attracting continued

PR Newswire

LONDON, Dec. 4, 2012

LONDON, Dec. 4, 2012 /PRNewswire/ -- Boeing (NYSE: BA) projects the world's
airlines should see reasonable liquidity and pricing for new-aircraft delivery
financing in 2013 even as jet builders ramp up production to meet demand, the
manufacturer announced here today in issuing its fifth annual finance market

"We expect that despite economic and political challenges, global air travel
will again demonstrate its remarkable resilience in 2013. The industry's
global growth and airlines' fleet replacements, accelerated by higher fuel
prices, should keep demand stable and attract sufficient financing," said
Kostya Zolotusky, managing director of capital markets development and leasing
at Boeing Capital Corp., the plane maker's financing and leasing unit which
develops the forecast.

The encouraging report comes amid lingering economic uncertainties and as
higher costs for eligible airline borrowing using government export credit
financing go into effect in 2013.

The manufacturer forecasts total industry jetliner deliveries at $104 billion
in 2013, with 95 percent of that expected to be split between Boeing and

Boeing foresees 2013 financing conditions on par with 2012, and predicts the
largest funding source – commercial banks – should strengthen their
investment. Among other major players, capital markets are expected to grow as
a funding source for U.S. airlines and expand to also serve non-U.S. airlines
and leasing companies. Meanwhile, leasing firms are expected to grow in their
delivery share and gain access to more diverse sources of equity and leverage.

This year began amid concerns that Europe's commercial banks, a primary
aircraft financing source, would pull out of the market due to the continent's
economic crisis. However, Zolotusky said those fears did not materialize, and
in 2013 the company expects that Europe's banks will remain active because the
aircraft space is one of the most attractive and high-performing sectors for
bank investments.

Boeing said regional commercial banks – in places like China, Japan,
Australia, the Middle East and North America – stepped back into or entered
aircraft financing in 2012 and expect to remain in 2013.

In announcing the need for increased financing for rising industry deliveries,
the company said market data clearly supports the higher production pace.

"Aircraft utilization is at record highs as are global load factors. Growth in
people traveling is happening faster now that new capacity is being
introduced. These are fundamental indicators that show that the aviation
market is healthy and perhaps even a little underserved," said Boeing's

The company expects the higher costs and stricter terms for export credit
borrowing next year to drive down reliance on government-backed loan
guarantees, as their use gradually returns to lower historic rates.

Boeing's complete 2013 aircraft finance market outlook can be found at


John Kvasnosky
Boeing Capital Corporation
+1 206-898-9528

Caution Concerning Forward-Looking Statements

This news release contains statements that are "forward-looking" within the
meaning of the Private Securities Litigation Reform Act of 1995. Words such as
"may," "should," "expects," "forecasts," and similar expressions are used to
identify these forward-looking statements. Such statements are based on our
current expectations and assumptions, which may not prove to be accurate. As a
result, they are not guarantees and are subject to risks, uncertainties, and
changes in circumstances that are difficult to predict. These statements speak
to events only as of the date they are made and we assume no obligation to
update or revise any forward-looking statement, except as required by law.
Factors that could cause actual results to differ materially include risks
related to U.S. and global economic conditions, general industry conditions
affecting Boeing or its customers, liquidity of the global financial markets,
Boeing's planned production rate increases across multiple programs and the
overall health of its aircraft production system; and other factors disclosed
by Boeing and Boeing Capital Corp. in Form 10-K, 10-Q and other filings with
the Securities and Exchange Commission.


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