Exclusive: Boeing to fold BCC into BCA | News | Airfinance Journal

Exclusive: Boeing to fold BCC into BCA

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Boeing is shuttering its Boeing Capital Corporation (BCC) financing entity as part of a reorganisation to simplify the business and support customers that coincides with the retirement of Tim Myers.

Following the departure of BCC president Tim Myers in the spring, Boeing plans to "realign the Boeing Capital organisation to operate within Boeing Commercial Airplanes, while maintaining strong coordination with Boeing Treasury," according to an internal memo from Boeing’s chief financial officer Brian West and reviewed by Airfinance Journal. 

Boeing said the majority of BCC’s work is focused on the commercial business, so the alignment will help ensure the "consistency of support" to customers. 

Myers announced his plans to retire from the financing unit on 16 February after a 30-year career with the original equipment manufacturer. He became president of BCC in February 2015.

Richard Hammond, vice-president and global head of customer finance, is expected to take over from Myers, sources indicate. 

Rob Martin, BCA's chief financial officer, and David Whitehouse, Boeing's treasurer, will lead the business transition. 

The memo concluded: "And as we realign, we will look for ways to simplify the organisation and focus resources on our core work of supporting our customers and their financing needs. We’ll share more information frequently as we move through this transition."

BCC is Boeing’s financing subsidiary that arranges, structures and provides financing for commercial airplane, space and defence products. It was inherited in the 1997 merger with McDonnell Douglas Corp and served as a financier of last resort for weaker-credit customers, occasionally providing backstop financing for airlines.

BCC has a portfolio of 181 aircraft, according to Airfinance Journal's Fleet Tracker and company reports. 

Commenting on the changes, a Boeing spokesperson said: “With most of Boeing Capital’s work focused on supporting our airline customers, this transition pairs the work with our commercial team. Working more closely together will help us provide customers with more consistent support while helping address the industry’s financing needs." 

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Transaction Snapshot
Air Company | Bond issue | 01-24 | $1.5bn
Financial Close:
11/02/2024
SPV:
Some Aviation Trust
Value:
$1,500.00m USD
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