Deliveries for commercial jetliners are set to leap by £5.5bn in 2013 according to a forecast by aircraft manufacturer Boeing.
With 95% of the market for commercial aircraft in 2013 expected to be split between Boeing and Airbus, the world’s two largest manufacturers of planes will again ramp up production with £65bn worth of jetliners forecast to be delivered in 2013, up from £59bn in 2012.
The increase is set to continue with banks in the Middle East and Japan upping their levels of finance for the purchase of aircraft, what has become a relatively safe investment in what is still a turbulent time to invest. Rising demand across the world for air travel will see the market swell to £82bn by 2017.
If Boeing fulfils its remaining commitments for the year then deliveries of its commercial jetliners are expected to exceed 600 for the first time, a steep rise on the 477 jetliners that arrived at airports across the world during 2011.
Rolls-Royce engines built in Derby enter a number of Airbus and Boeing jetliners, and Airbus has a wing-making facility in Broughton, North Wales, which is supported by its sister site in Filton, near Bristol.
The company directly employs 10,000 people and claims to support around 140,000 jobs in the UK with its wing work.
The fifth annual finance market forecast comes amid lingering economic uncertainties and as higher costs for eligible airline borrowing using government export credit financing go into effect in 2013.
Boeing warned that the company and its customers need to reduce their reliance on export credit as the new Aircraft Sector Understanding take effect.
Beginning January 2013, higher fees and equity requirements mandated by Organisation for Economic Co-operation and Development’s 2011 Aircraft Sector Understanding go into force reducing what was ruled as unfair support for Boeing from the Export-Import Bank of the U.S.
In announcing the need for increased financing for rising industry deliveries, the company said market data clearly supports the higher production pace.
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 them to remain in 2013.
“Growth in people travelling 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 under served,” said Boeing’s Kostya Zolotusky, managing director of capital markets development and leasing.