Airliner Export Credit Feels the Political Heat
Delta Air Lines leads a legal challenge to prevent the U.S. Export-Import Bank from providing financing for foreign airlines to purchase new aircraft. (Photo: Delta Air Lines)
Delta Air Lines leads a legal challenge to prevent the U.S. Export-Import Bank from providing financing for foreign airlines to purchase new aircraft. (Photo: Delta Air Lines)

Boeing’s recent assertion that the appetite of capital markets to fund airliner orders has increased comes as especially welcome news to manufacturers and their customers at a time when other sources of funding seem under pressure. Export credit, in particular, now comes generally at higher interest rates and with tougher equity requirements. At the same time, such government-backed capital has become a hostage to global politics, according to Kostya Zolotusky, managing director for capital markets development and leasing at Boeing Capital.