AerCap CEO warns tariffs could delay Boeing cash recovery

AerCap, the world's largest aircraft leasing company, said on Monday that potential new trade tariffs floated by U.S. President-elect Donald Trump could hit supply chains and hinder planemaker Boeing's efforts to restore much-needed cash. AerCap CEO Aengus Kelly said the biggest priority for Boeing and U.S. regulators should be to streamline certification of the 737 MAX 7 and 737 MAX 10 jets as well as the long-delayed 777X. Trump has pledged tariffs of up to 60% on global goods to protect U.S. workers in a move that experts say would probably draw retaliation from Europe and elsewhere. "We'll have to wait and see ... what's in the detail. A lot of parts that are supplied to Boeing, Airbus and Embraer aircraft are common," Kelly told Reuters on the sidelines of the Airline Economics conference. "What would you do with an engine that's partly made in France? Are you going to put a tariff of 20% on that engine? Is that counterproductive?" Kelly added. Boeing's largest engine supplier is CFM International, which is owned by GE Aerospace and France's Safran. "Boeing needs cash. It has to convert inventory into cash. Tariffs don't help that," Kelly said. "How do you get cash? You deliver airplanes. To deliver an airplane, it must be certified. If it's not certified, there's no chance of getting cash. That is what I would say should be the number one focus," he added.<br/>