Boeing steps into airplane financing for the first time after 2005
10 Nov 2008
Boeing Capital Corp, the Chicago-headquartered Boeing's in-house commercial finance company has said it may may sell as much as $2 billion of debt to allow its parent to help airlines struggling to secure funding amidst wide-spread credit crunch. The unit did not provide any time frame for the debt sale.
Kostya Zolotusky, Boeing Capital Corp. managing director, said last week in Hong Kong there may be ''a requirement over the next several years" to support carriers. He said Boeing would need to help carriers, particularly from the US, as they struggled to raise resources from commercial lenders.
This would be the first time since 2005 that Boeing would offer finance to carriers to fund purchases.
According to Zolotusky, Boeing Capital expects to deploy about $1 billion next year.
According to Zolotusky, Boeing's overseas orders, which account for about 90 per cent of Boeing's record $275 billion commercial backlog, are less affected as they continue to receive support from government agencies and banks.
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