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Introduction

Aug. 18, 2016, © Leeham Co.  The US Congress reauthorized the ExIm Bank after a long effort to kill the institution. But the Bank remains out of business for transactions for more than $10m. This means Boeing can’t use the Bank for export financing for purchasers of its 7-Series airplanes.

Why?

Because the Bank doesn’t have a quorum for its Board of Directors.

Why?

Because one US Senator is blocking appointments that would put the Bank back in business.

Who is this Senator?

US Sen. Richard Shelby (R-AL) is the lone senator blocking the US ExIm Bank from approving credit support for more than $10m. Boeing was a large beneficiary of ExIm support. Shelby is a supporter of the Airbus A320 plant in Mobile (AL). Photo via Google images.

Richard Shelby of Alabama. Shelby once supported ExIm Bank. Now he doesn’t.

According to news reports, Shelby became a convert to the extreme right’s view that ExIm is a form of corporate welfare and Boeing is its primary recipient. Boeing doesn’t need this support, Bank opponents say.

LNC believes there might be another reason.

Alabama is where Boeing rival Airbus opened an A320 assembly plant last year.

Summary

• Airbus had an advantage over Boeing with ExIm Bank shut down—until Airbus ran into its own export financing issues.
• Boeing has a defense unit in Huntsville (AL).
• Emerging Boeing rival Bombardier retains export credit financing support.