ATR sees more financing diversification

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Franco-Italian turboprop manufacturer ATR says financing for its ATR 42/72 deliveries is almost equally spread among commercial debt, export credit agencies (ECA) and lessor funding.

Speaking at the International Society of Transport Aircraft Trading conference in Barcelona last week, head of global sales John Moore said: “ECAs are expected to represent about less than a third of ATR deliveries this year.”

According to him, ECA bond structures will represent 17% of this year’s deliveries, while ECA-backed financings will account for another 8% and 6% will belong to lessors tapping the ECA market.

In January, ATR chief executive Fillipo Bagnato said he expected the availability of ECA support to increase in 2013.At the time, Bagnato acknowledged that the cost of financing was increasing with the full implementation of the new Aircraft Sector Understanding (ASU): "Pricing is going up but the new ASU will also cover up to 100% financing," he said.

ECAs supported 40% of the 64 new ATR deliveries last year, down from 54% in 2011.

The leasing community will represent a larger share of the ATR deliveries this year. According to Moore, operating lessors will represent 31% of deliveries this year.

He expects commercial debt banks to finance about 30% of the ATR 42/72 deliveries this year, while another 11% will be financed by internal cash at the airlines. Capital market transactions will account for 3% of this year’s deliveries.

According to Flightglobal’s Ascend Online database, ATR has delivered four ATR 42-600s and 41 ATR 72-600s since the beginning of the year.

The manufacturer aims to deliver 80 aircraft in 2013 and increase annual production to 90 aircraft by 2014.

ATR has secured 83 firm orders since the beginning of the year.