Boeing Capital is hopeful that a nominee to the board of the US Export-Import Bank could be confirmed by May, as the lack of export credit support is increasingly creating challenges in aircraft campaigns.
The airframer hopes that the Senate banking committee could begin hearings on nominee John Mark McWatters as early as this month, said Timothy Myers, president of Boeing Capital, at the ISTAT Americas conference in Phoenix.
This could start as soon as tomorrow, following the banking committee chairman Richard Shelby's campaign primary in Alabama today, he adds.
Shelby appears not face a serious challenger in the state's Republican primary.
Ex-Im's doors have been closed to new deals since the end of June 2015, when the US Congress failed to reauthorise its charter for the first time in its history. The bank was reauthorised in December but has lacked a board quorum ever since.
The lender cannot provide financing or loan guarantees valued at more than $10 million without a quorum.
Boeing did not feel a negative impact from the closure through the end of 2015, says Myers. Ex-Im was able to close loan guarantees approved prior to the lapse of its charter during this period.
The lack of Ex-Im has created more challenges for Boeing since the beginning of the year.
"From a competition standpoint, absolutely that's impacting us," says Myers.
Boeing is at a disadvantage versus Airbus – and to a lesser extent Bombardier and Embraer – in new aircraft campaigns without the support of an export credit agency, he says.
"You don't want to start from behind," Myers says, noting that this is the case without Ex-Im.
Boeing is yet to lose an order as a result of the lack of Ex-Im but is "getting there", he warns.
Source: Cirium Dashboard
