Jury Still Out on Effect of Credit Crunch on Aircraft OEMs

It seemed unlikely that tightening credit wouldn’t trigger more order cancellations or delivery deferrals among the world’s airlines, so even though the to

By Gregory Polek • Senior Editor

January 30, 2009

It seemed unlikely that tightening credit wouldn’t trigger more order cancellations or delivery deferrals among the world’s airlines, so even though the top manufacturers seem to have escaped the early stages of the crisis relatively unscathed, many predict a pronounced drop in financial support by the second half of this year.

Stuart Hatcher, an analyst for UK consultancy International Bureau of Aviation, told AIN that while certain banks have decided to exit aviation altogether, some of the industry’s most reliable sources of funding will simply suspend their activities until conditions change. But as even the best capitalized banks hesitate to commit to deliveries in the second half of the year, the big manufacturers say they can maintain production rates with the help of in-house financing and export credit agency/ExIm bank support.

The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background.

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