Boeing says Asia Pac cargo market drive global air freight

ASIA continues to play a pivotal role in global aviation, including aircraft financing, according to Boeing, and its banks are playing an important role in aviation finance, led by China, including HSBC and Standard Charter Bank, and Australia.

"Asia's demand was the key. And that includes demand for markets for aircraft, passenger travel and aircraft finance," said Kostya Zolotusky, managing director for capital markets development for the company's customer financing unit, Boeing Capital Corporation.

Mr Zolotusky was speaking at Boeing's Financiers and Investors Conference for Asia and Greater China in Hong Kong. The annual event presents the company's view of aircraft financing market conditions.

"Asia was clearly the engine that pulled the global aviation sector out of its doldrums in terms of the bulk of the growth, speed of recovery and continued strength," he said.

China's "burgeoning aircraft financial markets shines most bright," said Foster Arata, Boeing Capital vice president for Asia and Greater China and the conference host.

"The Chinese continue to do a lot of aircraft financing inside China, both for operating leases and finance leases, and China's continued to expand globally in both the financing and leasing arenas," said Mr Arata.

As examples, he cited recent financing by ICBC to Qatar Airways for four Boeing 777-300LRs and the acquisition by CDB Leasing and ICBC of aircraft portfolios now resident in Ireland, which is said to be the world's leading aircraft leasing base, thus expanding the Chinese franchises.

"Today, there's an even greater sense of confidence in the strength of the Asian engine," said Mr Zolotusky.

The positive sentiment comes as Boeing forecasts in its latest market outlook that Asia Pacific will over the next two decades "need more than US$1.3 trillion in new commercial airplanes, and the commercial fleet will nearly triple from 4,110 airplanes in 2009 to 12,200 airplanes in 2029," it said.

"The region's recent double-digit freight recovery lends credence to predictions that its air cargo market will lead all global air traffic routes, with domestic Chinese and intra-Asian markets growing at 9.2 per cent and 7.9 per cent per year respectively, a Boeing statement said.

Boeing's investment bankers, Boeing Capital works with third-party financing sources that provide nearly all of the financing support required by Boeing customers. BCC also managed the company's $5 billion portfolio of approximately 300 aircraft, Boeing said.
(Source:www.schednet.com)