Fitch Ratings remains positive about credit quality in the North American aviation market in 2008, despite recent economic concerns including the so-called credit crunch sparked by the US sub-prime mortgage market collapse.

In Fitch's view, there would need to be a substantial amount of "contagion" leading to a global economic downturn for the market outlook to become negative.

Fitch says the sector is not exhibiting signs of weakness, as illustrated by the strong orders for large commercial aircraft and business jets in recent months. Also, Fitch does not believe lower aircraft orders in 2008 would be a warning sign of overall weakness due to high orders in the past three years and large backlogs.

Fitch expects all segments of the commercial aerospace industry to deliver solid growth in 2008, and this growth should continue into 2009.

Source: Flight International