AerCap CEO warns tariffs could hinder Boeing cash recovery By Reuters

DUBLIN (Reuters) – The head of AerCap, the world’s largest aircraft leasing company, said on Monday that potential new trade tariffs proposed by U.S. President-elect Donald Trump could hit supply chains and hamper Boeing’s ( NYSE cash

The biggest priority for Boeing and US regulators should be streamlining certification of the 737 MAX 7 and 737 MAX 10, as well as the long-delayed 777X, CEO Aengus Kelly told Reuters in an exclusive interview on the sidelines of the Airline Economics conference.

Trump has promised tariffs of up to 10% on global imports and 60% on Chinese goods, plus a 25% surcharge on Canadian and Mexican goods to protect American workers, which experts say is likely to trigger retaliation from Europe and elsewhere.

“We’ll have to wait and see what goes into detail. A lot of the parts that are supplied to Boeing, Airbus and Embraer aircraft are common,” Kelly said.

“What would you do with an engine that’s part French, are you going to put a 20 percent tariff on that engine, is that counterproductive?” Boeing’s biggest engine supplier is CFM, which is owned by GE Aerospace and France Saffron (EPA:).

“Boeing needs cash. Tariffs don’t help it. How do you ship planes? It has to be certified.” it’s not certified, there’s no cash. That’s what I’d say should be the number one focus.”

Boeing was not immediately available for comment outside US business hours.

Speaking as AerCap celebrates 50 years of leasing aircraft in Ireland, Kelly also said he believed the shortage of aircraft and parts supply would last for “years” following several years of underproduction following COVID-19.