You win some, you lose some

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By admin October 8, 2015 20:42

You win some, you lose some

Boeing is on a bit of a rollercoaster ride of ups and downs of late, the order stream is strong and deliveries are powering forward but events outside of its control continue to weigh heavily on the US manufacturing giant.

The loss of Transaero is to Boeing what Skymark was to Airbus, but make no mistake the Boeing 747-8I situation is far more troubling than any lost A380 order given that Transaero had four 747-8Is on order. That takes the number of aircraft on order to just eleven and a number of those are not for commercial use. Two of the aircraft type (which are for commercial service) on order are for Arik Air, a good airline with the potential to fill the aircraft connecting London with Nigeria but the chances of Arik taking delivery without US Export-Import Bank backing is remote. There are eight of the cargo version on order at this time also. Boeing will lower the production rate to one aircraft per month.

On Capitol Hill, Republican lawmakers clashed behind closed doors yesterday over whether they should support legislation to revive Ex-Im Bank this month. The discussion centered around efforts to force a vote on the legislation through a discharge petition, a parliamentary move that requires 218 signatures. To get over that target supporters of the bank will require both Republican and Democratic support. But Republican leaders are advocating a withdrawal of support for the move to revive the bank. This might well all but kill off the attempts to bring forward a vote and as such the matter might have to wait until after October 29 when a new House speaker will be elected. At this rate, an October revival of the all-important bank seems highly unlikely and that will mean Boeing will need to start shuffling the order books, maybe pushing back African airlines such as Ethiopian that relies on Ex-Im backing to gain access to economically viable financing. These airlines may have to turn to the sale and leaseback market.

admin
By admin October 8, 2015 20:42