Market Trends
Popularity of A350 XWB key to securing financing solutions
The latest addition to the widebody family, the A350 XWB, has received nearly 800 firm orders from 41 customers. This represents, in list prices, approximately 250 billion US dollars to be financed in the coming years.
The current significant levels of liquidity in the market signify that airlines have been able to secure attractive financing solutions from numerous commercial sources, including the traditional bank market, capital markets and leasing companies. This has resulted in a lower share of Export Credit Support for Airbus deliveries seen in prior years, especially during the financial crisis.
The 10 A350 XWBs delivered through December 2015 have benefitted from the current buoyant market. These airlines have been able to choose from different sources of commercial financing available, demonstrating that the A350 XWB is an attractive asset class to financiers. Furthermore, impressive levels of maturity of the aircraft at entry into service bodes well for future deliveries as the aircraft matures further – an important consideration for financiers. In addition, the A350 XWB is attracting an increasing amount of Pre-Delivery Payment financing, further demonstrating the confidence that the financing community has in the aircraft.
Currently, it is a beneficial time for airlines seeking financing for aircraft deliveries. Airbus Customer Finance believes that the A350 XWB will continue to be a popular aircraft in the market and will remain at the customer side to facilitate financing needs.
For more information:
Irmela Ginkel, Customer Finance irmela.ginkel@airbus.com
Matthew Saks, Customer Finance matthew.saks@airbus.com