Poor $87 Billion Boeing Fears Losing Sales If Feds Stop Helping Them Out

Daily Caller News Foundation logo
Peter Fricke Contributor
Font Size:

Boeing is concerned that its long-term sales will suffer if conservative Republicans succeed in killing the Export-Import Bank this year.

The South Carolina Post and Courier reported Sunday that, “There’s a good chance the bank will go under this year,” and as its largest customer, Boeing will likely suffer the brunt of the loss. Between 2007 and 2013, about one-third of Ex-Im financing went to Boeing– far more than was awarded to any other company. (RELATED: Is the Export-Import Bank Done?)

Ex-Im drew conservative criticism last year, “with many Republicans seeing the bank’s existence as a form of corporate welfare,” and barely survived a re-authorization battle in September. Lawmakers agreed on a compromise extending the bank’s charter for six months — until the end of June — and opponents are optimistic they will have the votes to kill it at that point.

The Post and Courier claims that “more than 75 percent of Boeing’s future production [is] headed to places like China, India, and Indonesia,” but because of the high cost of aircraft purchases, “many emerging economies in Asia can’t afford them without the bank’s help.” (RELATED: Boeing, Delta Square Off on Export-Import Bank)

According to Aviation International News, U.S. aerospace industry sales grew by about 4 percent in 2014, “with large airliner sales setting the pace.” Civil aircraft sales, which represent the industry’s largest segment, increased from $69.7 billion in 2013 to an estimated $75.3 billion in 2014.

Data compiled by the Aerospace Industries Association (AIA) reveals that “orders increased for a sixth consecutive year, with foreign orders representing 72 percent of the aircraft backlog,” and that the driving force behind that growth was “Boeing’s 1,274 net orders and $40 billion in orders and commitments.”

AIA President and CEO Marion Blakey remarked at a recent luncheon that “You can count on AIA carrying forward the fight for a full reauthorization until a decisive victory is obtained.”

The Post and Courier claims the bank’s supporters “say they don’t know what all the fuss is about, considering that Ex-Im “actually produces a profit—more than $3.4 billion since 2005.” (RELATED: Export-Import Banks Gives Billions to Boeing, Coal to Taxpayers)

Jim Newsome, president and chief executive officer of the S.C. State Ports Authority, told the Post and Courier that Ex-Im is “an effective form of financing that earns money. I don’t understand why you would change it.”

In an op-ed for Reason, Tim Carney disagrees, pointing out that the subsidies awarded by Ex-Im, “put the U.S. taxpayer on the hook if a foreign customer fails or refuses to pay back a loan.”

More than half of the bank’s financing takes the form of loan guarantees, which Carney describes as “mostly a subsidy program for Boeing,” with more than half going to cover Boeing exports over the past three years.

“Luckily for Ex-Im (and U.S. taxpayers), purchasers of jumbo jets have a tiny default rate so far,” Carney says, but he also notes that a growing number of legislators are concerned that Ex-Im could lead to government bailouts like those given out during the financial crisis.

Follow Peter Fricke on Twitter

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact