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Boeing loses second potential satellite deal over Ex-Im lapse
September 15, 2015 / 3:47 PM / 2 years ago

Boeing loses second potential satellite deal over Ex-Im lapse

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NATIONAL HARBOR, Md., Sept 15 (Reuters) - Boeing Co on Tuesday said Singapore-based satellite operator Kacific had decided it would not consider a bid on a satellite contract from Boeing without financing from the U.S. Export-Import Bank, whose charter expired in June.

This marks the second signed or potential satellite deal Boeing has forfeited due to the congressional wrangling over Ex-Im's future, following a decision by privately held ABS, based in Bermuda and Hong Kong, to cancel an order in July.

Kacific is a new broadband satellite operator geared to deliver high-speed internet to enterprises, agencies and remote communities in the Pacific islands, Indonesia, the Philippines, New Zealand and Papua New Guinea.

Boeing spokeswoman Gayla Keller said Kacific notified Boeing that it could not compete for the satellite order without financing backed by Ex-Im.

"This is another example of how the lapse in Ex-Im's charter is having a direct impact on our business - not only in commercial airplanes but in satellite orders," Keller said.

Boeing announced last month that it will cut as many as several hundred employees in its satellite business, citing the uncertainty regarding Ex-Im financing as a contributing factor.

"Many of Boeing's international customers rely on Ex-Im and the uncertainty surrounding the bank does affect our ability to grow our business with new orders and could affect future workforce decisions," Keller said.

The U.S. Export-Import Bank's role was to provide export credit insurance, working capital guarantees and guarantees of commercial loans to foreign buyers of U.S. products.

No further details were immediately available about the potential size of a Kacific order, or the scale of any additional layoffs. (Reporting by Andrea Shalal; Editing by Dan Grebler)

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