Paris: Global airlines face a hike in the cost of financing aircraft deliveries as an international pact on export credits squeezes already-scarce funding, according to consultants PwC.
Tougher policies by leading Export Credit Agencies (ECAs) could result in higher ticket prices and speed up the development of alternative funding channels in the $100 billion jetliner market, it said in a report published on Monday.
Although the industry is expected to cover its needs this year, the higher costs and tightening of funds could also put pressure on manufacturers such as Airbus and Boeing to fill the gap with more customer finance, it added.
Manufacturers made up 7 percent of global aircraft financing in 2012, up from 3 percent in 2011, according to the report.
For years government export credit agencies in the main aircraft-producing nations -- the United States, Canada, Brazil and EU members such as France, Germany and the UK - have acted as a backstop to promote exports to fragile foreign airlines.
07/01/13 Reuters/Economic Times
