Source: The New Zealand Herald

This must be for domestic airline as the Boeing Bank Ex-Im bank hardly says no.

I don't know that this this issue depends specifically on the Ex-Im Bank, Falcon ?

I've been reading a few speculative pieces on this very issue of late. It appears that with the 'credit crisis', that the number of fully-blown global banks that are prominent in the arena of aircraft financing deals has collapsed from over 60, to somewhere in the vicinity of 35. As the banks (particularly in the USA) are being re-organised and refocused, it appears that this particular area of expertise and funding is shrinking dramatically.

Ergo, the number of available financing options / sources for such companies as ILFC, GECAS etc and smaller airline carriers is drying up. Obviously, the majors such as GECAS and ILFC would experience comparitively few problems, but smaller leasing companies without the scale of these two may well find the need to re-examine their sources / streams of funding.

It is generally pre-supposed that both Boeing and Airbus will return to the business of financing (by recreating or substantially restructuring Finance divisions) shortly, as well as manufacturers such as Bombardier and Embraer. Apparently, the Japanese are already in significant discussions with Airbus on this very matter, as we post.

Lastly, not everyone chooses to avail themselves of the Ex-Im Bank financing streams. I'm reminded of QF's acquisition of it's B747 fleet in the late 1970's - early 1980's, where about half of the fleet was purchased outright and the finance / leasing package for the balance was put together by one or two commercial US banks and a consortium of Japanese-led banks.

Considering that the financial bailout did not pass and it is assumed that credit and financing will be harder to come by for companies, Boeing and Airbus may be forced to finance aircraft in order to get sales.

At least oil is below 100.

^
Very true Falcon, there is some good news.

I know Boeing used to offer their own financing in the early 2000's (Boeing Capital out of Long Beach, CA), but I don't know if that continued past the 9/11/01 "draw down".

And now with ILFC having problems securing credit and looking to be sold by AIG to shore up their own accounts, both Boeing and Airbus will likely need to be more proactive in securing funding for their customers.