By Valerie Insinna
WASHINGTON (Reuters) – Boeing said on Thursday it is merging its aircraft financing arm into its commercial airplanes business unit as part of a push to simplify its corporate structure.
After the retirment of Boeing Capital Corp (BCC) President Tim Myers this spring, Boeing said it will “realign” the financing arm within the commercial airplane unit while still maintaining “strong coordination” with the company’s treasury arm. Airfinance Journal earlier reported the move.
Boeing Capital, a subsidiary of Boeing, provides asset-based financing and leasing to prospective commercial jet buyers. By moving the financing organization under its commercial airplane unit, the Boeing hopes it can simplify the buying process for customers.
The realignment will “focus resources on our core work of supporting our customers and their financing needs,” Boeing Chief Financial Officer Brian West said in an internal memo viewed by Reuters.
A Boeing spokesperson said the shift will provide airline customers “with more consistent support” for arranging aircraft financing.
Rob Martin, finance chief for the commercial airline business, and Boeing Treasurer David Whitehouse will be responsible for the transition, West said in the memo.
The closure of Boeing Capital continues a trend for Boeing to consolidate operational structure. The company in November announced a reorganization of its defense unit aimed that halved its business divisions.
(Reporting by Valerie Insinna; editing by Ben Klayman and Stephen Coates)
