| HeraldNet - Snohomish County's online news source |
 TUESDAY, FEBRUARY 9, 2010 9:44 pm |
||||||||||
 |
||||||||||
|
||||||||||
|
||||||||||
|
|
||||||||||
|
|
||||||||||
Business 
|
|||||||||
AIG woes could hurt Boeing With 94 Boeing jets on order, ILFC warns that its future depends on the insurance giant staying afloat. EVERETT -- A major Boeing Co. customer needs funding from its troubled parent company, American International Group, AIG, or another source to stay afloat.International Lease Finance Corp. warned its future is in jeopardy in a regulatory filing Wednesday. "We have been significantly and adversely affected by recent events in the marketplace, including challenges faced by AIG," the aircraft leasing company said in a filing to the Securities and Exchange Commission. ILFC said it borrowed $800 million on March 12 from AIG to fund its debt through the end of the month. But the buyer of Boeing and Airbus aircraft will need additional funding, roughly $900 million, for debts that come due in April. Although AIG has approved an additional loan, that funding will be subject to scrutiny by the U.S. government, which is bailing out the insurance giant. In its filing, ILFC noted that AIG believes it can meet financing obligations over the next 12 months or until AIG can sell off the aircraft lessor. But ILFC warned that the outcome of AIG's plans could be different or its judgments may be "incorrect." Outside funding may be difficult for ILFC to obtain given the tight credit market and the leasing company's ties to AIG. ILFC said the lowering of AIG's credit rating as well as increased volatility in the aviation industry also could hinder the company's ability to receive financing from another source. "Our business is also subject to numerous other risks and uncertainties. … Many of these risks are interrelated and the occurrence of certain of them could in turn cause the emergence, or exacerbate the effect, of others. Such a combination could materially increase the severity of the impact on us," ILFC said in its filing. But local analyst Scott Hamilton, with Leeham Co., doesn't see ILFC's troubles creating huge problems for Boeing or Airbus. "I don't think the federal government would ever let ILFC go into bankruptcy," Hamilton said. Still, "the risks are there," he added. If ILFC can't find funding for its Boeing jet deliveries, the leasing company likely will get a hand from the Boeing Capital Corp., the aerospace company's financing arm. "This is Boeing's biggest customer," Hamilton said. ILFC has 94 aircraft on order with the Boeing Co, including requests for 74 Boeing 787s. Boeing officials already have said the company may have to step in and finance jet orders for customers this year. Like ILFC, airlines face declining cargo and passenger travel and a tightening credit market. |
- A revolutionary 747
- Fire breaks out at Everett car dealer
- Everett rethinks boutique wineries
- A tidy lawn could be law in Lynnwood
- Snohomish County's bargain housing won't last
- Boeing's 747-8 takes off after weather delay
- Plan for I-5 closures this week
- A new bowling alley for Monroe?
- Lake Stevens man homeless after fire
- I-5 bridge joint may give you a jolt, but it isn't damaged
- Vote on school levies by Tuesday
(11) - A tidy lawn could be law in Lynnwood (10)
- State Senate votes to toss I-960's tax-raising hurdle (9)
- Lynnwood sets height limit on grass: 8 inches (8)
- Everett rethinks boutique wineries (5)
- Everett police officers cleared in 2008 shooting death (5)
- 1949 travel aid shows how few places blacks were welcome in Washington (4)
- I-5 bridge joint may give you a jolt, but it isn't damaged (4)
- A new bowling alley for Monroe? (3)
- Toyota has powerful D.C. friends (3)
- Edmonds educator, famous announcer dies
- Mill Creek to appeal ruling on annexation
- Through the air, with the greatest of ease
- E-W thriving under new coach
- The path to citizenship
- EUUC puts on ‘Pants & Shoes’
- Wolfpack wins the ‘Battle'
- Lynnwood’s annexation plans OK’d
- Arlington's Cascade Valley Hospital celebrates expansion, national award and 100 years of service
- Business Licences Feb. 2010
- Technology tips for launching your own business
- Business Events Feb. 2010
- Tech Talk: No excuse today for going without a Web site
- State already raising fees and rates that restrict business growth
- Some legislators again targeting people’s initiative petition rights
|
 
|
|
|
|
| TODAY'S TOP JOBS |
| View All Top Jobs |
| Top Cars |
|
| Top Homes |
|
|
ADVERTISEMENT |
|
|
|Contact Us
|Advertiser Services
|Home Delivery
|Newsstand Locations
|Classifieds
|Feedback
|About the Company
|Work@the Herald
|Site Map |
|
COMMENTS | Be the first to comment
Log in or register to post a new comment.
To read other terms and conditions, click here