European export credit agencies (ECA) and insurers supporting the aviation industry spoke at the 2024 Airline Economics Growth Frontiers Dublin conference. During the supported finance panel for Europe, UK Export Finance (UKEF) head of aerospace & defence Pat Cauthery said that "demand for ECA is still at relatively low levels".
The Covid pandemic had proven important for ECAs, since the period provided "strong evidence that ECAs are reliable; that they can react," said Euler Hermes unit head aerospace Thomas Kolberg.
However, that fall in demand for export credit backed deals was largely attributed says Cauthery to the "growing dominance of lessors" that had supported airlines in ways that don't involve ECAs. But he says UKEF supported the UK through the crisis and supported financing for exports in "certain jurisdictions" and for "certain asset types", which is the role the ECAs should be fulfilling.
Within the UK, the ECAs supported airlines, with UKEF supporting around 17 airlines during the Covid pandemic as OEM support was less required with deliveries deferred. Cauthery added that "support is tapering off now as the market has rebounded pretty strongly".
Though, Cauthery said that this "highlights the ability of ECA to kind of come in when needed, be flexible but supporting and then pull back when the market takes over.