Boeing Rejects Claims We're In A Bubble

Boeing has hit back at claims that the industry is in a 'bubble' over aircraft supply and demand with a report that suggests the market is "in balance". Speaking at the annual International Society of Transport Aircraft Trading (ISTAT) Europe meeting, Kostya Zolotusky, managing director of capital markets development and leasing at Boeing Capital, said that key indicators used to determine airline overcapacity remain within nominal ranges as global deliveries head toward an expected record level of more than $100bn for 2013. “All key measurable and relevant criteria point to a market balance for demand and capacity growth, aircraft utilisation, load factors, stable parked fleet, aircraft lease rates and strong performance for residuals, without outside circumstances affecting the market,” Zolotusky said. Boeing also reported that, as jetliner production rates have risen during the course of 2013, financing for the increased pace of deliveries has kept up. “There is good liquidity at reasonable prices for deliveries despite the fact that aircraft financing is undergoing a meaningful transformation,” Zolotusky said. “We believe we’re well positioned for the availability of adequate and reasonably priced capital to fund the production growth.”

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