Tariff Turmoil: AerCap and Boeing's Crossroads

AerCap CEO Aengus Kelly warns that potential new trade tariffs by U.S. President-elect Donald Trump could disrupt supply chains, impacting Boeing's cash flow and aircraft certifications. Tariffs could affect Boeing's delivery schedules amid ongoing supply chain issues, crucial for Boeing to generate cash flow.

AerCap, the globe's leading aircraft leasing company, has raised concerns over potential trade tariffs introduced by U.S. President-elect Donald Trump. These tariffs could disrupt Boeing's supply chains, hindering the planemaker's effort to improve cash flow, according to AerCap CEO Aengus Kelly. This, in turn, could impact Boeing's ability to certify and deliver its 737 MAX and 777X models, essential for generating revenue.

Kelly emphasized the importance of expediting the certification process, stating, "We'll have to see what's detailed in these tariffs. Parts supplied to major aircraft manufacturers like Boeing are global." The tariffs could challenge Boeing's largest engine supplier, CFM International, which relies on parts from both GE Aerospace and France's Safran.

As AerCap marks its 50th anniversary, Kelly noted ongoing supply chain challenges might persist. The delay in new fuel-efficient jets has forced airlines to rely on older models. Despite geopolitical risks in regions like Russia and China, AerCap adapts to remain a vital player in the aircraft leasing industry.

(With inputs from agencies.)