AerCap’s CEO, Aengus Kelly says potential new trade tariffs proposed by President-elect Trump could cause disruption to supply chains and affect Boeing’s financial recovery.
The need for efficient certification of Boeing’s aircraft models, particularly the 737 MAX and 777X, is emphasized as crucial for converting inventory into cash through deliveries.
AerCap has faced delays in aircraft deliveries due to supply chain issues and expects tight supply conditions to persist over the coming years.
Geopolitical risks, particularly in Russia and China, are affecting aircraft lessors’ operations and strategies, leading to a cautious approach in these markets.
Gus Kelly told delegates at the Airline Economics conference: “We’ll have to wait and see what’s in the detail. A lot of parts that are supplied to Boeing, Airbus AIR.PA and Embraer EMBR3.SA aircraft are common. What would you do with an engine that’s partly made in France? Are you going to put a tariff of 20pc on that engine? Is that counterproductive. Boeing needs cash. It has to convert inventory into cash. Tariffs don’t help that.”
