AerCap CEO warns tariffs could hinder Boeing cash recovery (updated)

AerCap Holdings

13/01/2025 12:35

* 
      Tariffs could hit supply chains, AerCap head says
    

        * 
      Also hinder Boeing's efforts to generate cash 
    

        * 
      Priority should be to streamline jet regulation
    

        * 
      Jet and parts shortages could last years
    

  
 (Adds quotes and context from paragraph 3)
       DUBLIN, Jan 13 (Reuters) - The head of the world’s
largest aircraft leasing company, AerCap  AER.N , said on Monday
that potential new trade tariffs floated by U.S. President-elect
Donald Trump could hit supply chains and hinder efforts by
Boeing  BA.N  to generate much-needed cash.
    The biggest priority for Boeing and U.S. regulators should
be to streamline certification of the 737 MAX 7 and 737 MAX 10
jets as well as the long-delayed 777X, CEO Aengus Kelly told
Reuters in an exclusive interview on the sidelines of the
Airline Economics conference.
    Trump has pledged tariffs of up to 10% on global imports and
60% on Chinese goods, plus a 25% surcharge on Canadian and
Mexican products, to protect U.S. workers in a move that experts
say would probably draw retaliation from Europe and elsewhere.
    "We'll have to wait and see...what's in the detail. A lot of
parts that are supplied to Boeing, Airbus and Embraer aircraft
are common," Kelly said.
    "What would you do with an engine that's partly made in
France? Are you going to put a tariff of 20% on that engine? Is
that counterproductive?". Boeing's largest engine supplier is
CFM, owned by GE Aerospace  GE.N  and France's Safran  SAF.PA .
    "Boeing needs cash. It has to convert inventory into cash.
Tariffs don't help that," Kelly said. "How do you get cash? You
deliver airplanes. To deliver an airplane, it must be certified.
If it's not certified, there's no chance of getting cash. That
is what I would say should be the number one focus."
    Boeing was not immediately available to comment outside of
U.S. business hours.
    Speaking as AerCap celebrates the 50th anniversary of
aircraft leasing in Ireland, Kelly also said he believed a
shortage of supply of jets and parts would last for "years" in
the wake of several years of underproduction following COVID-19.

 (Reporting by Tim Hepher, Editing by Louise Heavens, Kirsten
Donovan)
 ((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters
Messaging: tim.hepher.thomsonreuters@reuters.net))