January 22, 2018 / 12:35 PM / in a year

Planemakers expect export funding impasse to be resolved soon

DUBLIN, Jan 22 (Reuters) - The world’s leading planemakers said on Monday they expected uncertainty over Western government financing for Airbus and Boeing exports to be resolved in coming months, while Airbus said it was working on an alternative system with insurers.

A system of export credits designed to help some airlines pay for jets has been suspended for around two years: in the United States due to a political stalemate over appointments at the Export Import Bank (EXIM) and in Europe because of talks over new rules following compliance problems at Airbus.

Airbus expects European export financing to be partially restored “fairly soon,” an Airbus executive told the Airline Economics conference in Dublin.

“We do believe we will see the comeback soon if everything goes to plan,” she said.

But funding is unlikely to be on the same scale as in the past due to the toughened rules, under which applications are expected to take longer, Christin Lodberg, vice-president of customer finance, said.

Airbus is meanwhile working with a group of five insurance companies to set up an alternative export funding system, echoing Boeing’s involvement with the recently formed Aircraft Finance Insurance Consortium (AFIC), she said.

A Boeing Capital Corp executive said talks over nominations at the U.S. Export Import Bank were expected to take a backseat during the current budget impasse in Washington, but predicted the agency’s status would be resolved in this quarter. (Reporting by Tim Hepher; Editing by Conor Humphries)

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