Boeing to move historic financing arm under jet business

Boeing said Thursday it is absorbing its decades-old aircraft-financing arm into its commercial airplanes unit as part of a push to simplify its corporate structure. After the retirement of Boeing Capital Corp President Tim Myers this spring, Boeing said it would "realign" the financing arm within the commercial airplane unit while maintaining "strong coordination" with Boeing's treasury arm. Boeing Capital, a subsidiary of Boeing, provides asset-based financing and leasing to airlines lacking access to funding. The realignment will "focus resources on our core work of supporting our customers and their financing needs," Boeing CFO Brian West said in an internal memo viewed by Reuters. The closing of Boeing Capital continues a trend for Boeing to consolidate its operational structure and ends a significant chapter in the fast-expanding air finance industry. Boeing in November announced a reorganization of its defense unit that halved the number of sub-divisions. It has also moved to cut 2,000 white-collar jobs in finance and human resources. The move comes days after the final delivery of the Boeing 747. BCC was credited with prolonging the reign of the Queen of the Skies for several years after stepping in to finance the sale of freighters to Russia's Volga-Dnepr with leasing deals when other financiers were reluctant to back the aging jet.<br/>