ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Business trends

Japanese megabanks open lending taps for aircraft finance

Asia's airline industry a promising borrower as the middle class expands

An AirAsia Japan jetliner sits on an airport tarmac. The expansion of budget airlines in Asia is one factor driving demand for aircraft.

TOKYO -- Japan's major banking groups, or megabanks, are increasing their loans to leasing and airline companies as the country's lending rates remain extremely low due to the central bank's negative interest-rate policy, as well as other factors. The airline industry, meanwhile, shows much promise as a borrower with robust growth potential, given that a single plane costs hundreds of millions of dollars.

Over a 20-year period through 2036, the number of private jetliners around the world is expected to rise by 80% to about 38,000. More than 80% of this is expected to be demand for new jetliners and replacement aircraft. In Asia and other emerging markets with a growing middle class, smaller, narrow-body jets with capacity of about 200 passengers lead the market.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more