ETStar From Canada, joined Jan 2004, 2103 posts, RR: 10 Posted (3 years 1 month 5 days 16 hours ago) and read 6448 times:
News article states that two lenders for ET's 787s have pulled out of the deal as the agreement had expired before the deliveries of the Dreamliners.
Quote:
Reliable sources told The Reporter that DVB and ING recently pulled out of the financing deal as the agreement had expired before the deliveries of the Dreamliners. It is to be recalled that Boeing had repeatedly postponed the deliveries of the new aircraft.
Sources said the two banks would have renewed the financing deal had it not been for the global economic crisis. According to sources, ING completely withdrew from financing aviation businesses in the wake of the economic crisis. DVB, however, was willing to renegotiate with the management of Ethiopian on financing options. Sources say DVB had asked for a higher interest rate and exposure fee, which is at least double what had been agreed initially. Ethiopian has reimbursed the financiers more than 13 million dollars. So far Ethiopian has paid 30 million dollars for the new aircraft. “Ethiopian is in a good financial position to finance the Dreamliners’ purchase. There are also other financing options,” sources said. The Reporter has learnt that at the moment Ethiopian is financing the Dreamliners’ purchase. Next week an Ethiopian delegation will leave for the US to hold talks with EX-Im, Boeing and other financiers. EX-IM is still committed to assist Ethiopian.
787kq From United States of America, joined Mar 2006, 543 posts, RR: 0 Reply 2, posted (3 years 1 month 5 days 3 hours ago) and read 3636 times:
Quoting Stitch (Reply 1): How can it be at risk if, and I quote:
“Ethiopian is in a good financial position to finance the Dreamliners’ purchase. There are also other financing options.”?
Good question. I think the suggestion is that because many banks' financial positions are precarious. So even good credits, that would normally recieve loans, are not being financed.
Osiris30 From Barbados, joined Sep 2006, 3175 posts, RR: 29 Reply 3, posted (3 years 1 month 5 days 3 hours ago) and read 3629 times:
Quoting 787kq (Reply 2): Good question. I think the suggestion is that because many banks' financial positions are precarious. So even good credits, that would normally recieve loans, are not being financed.
Boeing will just do what Airbus is doing, and arrange for them to get financed worst case... Ethopian and Boeing have a long and prosperous relationship.
I don't care what you think of my opinion. It's my opinion, so have a nice day :)
Stitch From United States of America, joined Jul 2005, 23614 posts, RR: 79 Reply 4, posted (3 years 1 month 5 days ago) and read 3000 times:
Quoting 787kq (Reply 2): Good question. I think the suggestion is that because many banks' financial positions are precarious. So even good credits, that would normally recieve loans, are not being financed.
But using that argument, every Boeing and Airbus plane not yet delivered is "at risk" because even if financing is in place, the financiers might want to change the terms of the loan, as ET's did with their 787s.
Now that may very well be the case, but are we really going to argue every single order and delivery? I should hope not.
Quote... "ING withdrew from the project while DVB sought higher interest rates and fees, the Addis Ababa-based newspaper said. The airline will now seek alternative financing, it said"
Quoting Stitch (Reply 4): are we really going to argue every single order and delivery? I should hope not.
ditto!
But alas... since there's no other 787 news around, what else is there for people to concentrate on?
It's better to ask a stupid question during training, rather than make a REALLY stupid mistake later on!
Danny From Poland, joined Apr 2002, 3432 posts, RR: 2 Reply 6, posted (3 years 1 month 4 days 13 hours ago) and read 1767 times:
Quoting Stitch (Reply 1): How can it be at risk if, and I quote:
"Ethiopian is in a good financial position to finance the Dreamliners' purchase. There are also other financing options."?
For a time there was a large vinyl banner celebrating ET's 787 order in the cafe at the Museum of Future Flight.
Quoting Stitch (Reply 4): But using that argument, every Boeing and Airbus plane not yet delivered is "at risk" because even if financing is in place, the financiers might want to change the terms of the loan, as ET's did with their 787s.
It is at risk because even carriers in good financial condition require financing to take delivery of new aircraft. A lot of these have been already arranged but every loan agreement has certain validity conditions and usually is limited in time. Due to excessive delays at Boeing Ethiopian and many other face a problem of lapsing financings for 787. With they way markets are now the alternatives are limited and usually more expensive than the previous ones.
Baroque From Australia, joined Apr 2006, 15380 posts, RR: 60 Reply 8, posted (3 years 3 weeks 5 days 16 hours ago) and read 1084 times:
Quoting Stitch (Reply 4): But using that argument, every Boeing and Airbus plane not yet delivered is "at risk" because even if financing is in place,
That is probably the new reality and where planes are delayed as the A380 and 787, a not so nice "window of opportunity" opens.
Well away from the high finance of airplanes and the general banking problems, our four big banks are 4 of only a dozen or so banks world wide with good credit ratings and still businesses in Aus are having difficulty in getting finance. It might have started with houses in the US and the UK, but the credit problems are affecting just about everything these days. While one might wonder why the various stimuli and bail(s)out do not seem to have helped, perhaps the real question is how bad would it be without them?
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