Production rate increases 'double-edged sword': JP Morgan

This story is sourced from

Aircraft production rate increases at Airbus and Boeing are a "double-edged sword", said JP Morgan in a research note yesterday, reiterating the view of certain conference speakers at an industry event in Dublin.

"While demand remains high and financing readily available for new, modern fuel-efficient aircraft - lease rates, values, and financing availability for mid-life aircraft continue to suffer," said JP Morgan.

On another note, JP Morgan said the sale of RBS Aviation Capital to Sumitomo Mitsui Financial Group earlier this month was fuelling an air of optimism surrounding public markets financings.

"Most conference participants anticipate operating lessors will be even more active in the capital markets going forward," said JP Morgan.