Airbus confident in financing for 2009 deliveries

Phoenix
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Buoyed by financial support from export credit agencies Airbus believes the majority of its deliveries this year will gain financing.

Airbus Americas CEO Barry Eccleston says financing was secured for deliveries scheduled during the first half of this year prior to the global economic collapse and credit freeze.

Eccleston told attendees at the Phoenix Sky Harbor International Aviation Symposium that Export Credit Agencies should support roughly 45%-50%, while Airbus will supply roughly $1 billion in financing.

He also sees some movement in the sale-leaseback market even as that segment gets hammered by frozen credit markets.

Accounting for some "fallout" Eccleston believes export credit agency support, some lessor deals and Airbus financing should result in the airframer "getting pretty close" in terms of meeting delivery targets.

IATA chief economist Brian Pearce tells ATI the French government "has pretty much said they'll support loans" for deliveries in 2009. He believes more uncertainty surrounds deliveries in 2010 and 2011 as passenger demand has dropped dramatically. Unlike the previous downturn in 2002-2004, Pierce explains low cost carriers are not going to alleviate the pressure on aircraft sales. "Even in Europe those airlines are cutting capacity."