Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published April 7, 2009 at 5:51 PM | Page modified April 8, 2009 at 11:40 AM

Comments (4)     E-mail E-mail article      Print Print view      Share Share

Boeing customer Lion Air gets financing for 30 jets

Indonesian low-cost carrier Lion Air, which has ordered a whopping 162 of Boeing's newest 737-900ERs, has won approval for more than $1 billion in financing support from the U.S. Export-Import Bank, allaying concerns that it would not find sufficient financing.

Seattle Times aerospace reporter

Indonesian low-cost carrier Lion Air, which has a whopping 162 of Boeing's newest 737-900ERs on order, has won approval for more than $1 billion in loan support from the U.S. Export-Import Bank, allaying concerns that it would not find sufficient financing.

Ex-Im Bank's board approved $238 million in financing and made a nonbinding preliminary commitment of a further $841 million if Lion Air formally requests it. The bank said the combined amount will support the deliveries of 30 of the 737-900ERs from Boeing.

Bank spokeswoman Linda Formella said the money could be provided either as a loan guarantee or as a direct loan, depending on Lion Air's requirements.

"Ex-Im Bank welcomes this opportunity to support the export of Boeing aircraft to Lion Air," said Ex-Im vice president of transportation, Robert Morin.

Carol Sexton, Southeast Asia managing director of Boeing Capital, the company's financing unit, said in a statement that the financing would support jobs at Boeing in Washington state, and at engine-maker CFM International in Cincinnati, Ohio, as well as at hundreds of suppliers to both.

Last month at a conference in Phoenix, Ariz., Morin said the Ex-Im Bank sees the global credit crunch creating a big shortfall in airplane financing this year. He said the Bank will accordingly increse its financing in the sector, up from the $4-5 billion typical in recent years to around $8-9 billion in 2009.

The bank's explicit purpose is to support jobs in the U.S. by offering export financing.

"This is game day for the Ex-Im Bank," Morin said in Phoenix.

Lion Air's unfilled Boeing orders are worth more than $13 billion at list prices. Market data from aircraft valuation firm Avitas pegs the true value of those jets, after standard discounts, at more than $8 billion.

Dominic Gates: 206-464-2963 or dgates@seattletimes.com

Copyright © 2009 The Seattle Times Company

More Business & Technology headlines...

E-mail E-mail article      Print Print view      Share Share

Comments (4)
Time to strike.  Posted on April 8, 2009 at 11:15 AM by mork34. Jump to comment
Maybe something good will come out of Europe yet ! ! Glad for this news in any event. Now, if we could just be assured of the jetfuel to...  Posted on April 8, 2009 at 7:30 AM by BoeTiger. Jump to comment
Soooo, I guess they didn't need that AIG subsidiary so much after all... Fail.  Posted on April 7, 2009 at 7:55 PM by John A. Bailo. Jump to comment

advertising


Get home delivery today!

More Business & Technology

Nintendo re-enlists Mario, savior of video-game industry

Verizon-Frontier deal stirs concern among consumers

Brier Dudley: 'Guitar Hero' founder excited about future

NEW - 11:03 PM
Hutch gets $10M from Bezos family for immunotherapy research

Interface: Socrata helps public agencies share data

Advertising

Video

Raw Video | Real Salt Lake receives the MLS Cup trophy
Real Salt Lake is handed the 2009 MLS Cup trophy at Qwest Field, November 22, 2009.

Raw Video | Real Salt Lake fans celebrate
Real Salt Lake fans enter Qwest Field
Raw Video | MLS Cup Opening Ceremony
LA Galaxy's David Beckham
Real Salt Lake's Kyle Beckerman
MLS trophy arrives in Seattle
Chittenden Locks Inspection
Full interview with New Moon actors
Interview with New Moon actors

Marketplace

nwautos

2009's most fuel-efficient sedansnew
Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment

Open Houses

Find this weekend's open house listings.
Or search by location:

 
Most read
Most commented
Most e-mailed
 
 
Advertising