To restore faith in the 737 MAX, Boeing needs to prove its flagship jet is not j...
Investors in Boeing shares and in MAX planes are watching closely as compensation negotiations determine how much of the financial pain of the crisis each side swallows.
AerCap, the world’s largest aircraft lessor, said it was expecting Boeing to compensate it if it were forced to find new lessees for MAX jets dumped due to the delay. Kelly noted strains in the market, saying ‘loan-to-value’ - or the share of the MAX’s purchase price that a bank will cover, may be lower than for a competing Airbus. Some lenders may try to “extract some premium” by raising borrowing costs, he added.
Lessors “will focus a lot on when Boeing end up having to announce a replacement - which for us as asset owners would be the key to deciding whether it’s something we want to invest in,” said Paul Sheridan, CEO of lessor AMCK Aviation.
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