Hawaiian only one
of Boeing’s problemsThe aircraft manufacturer's financing
division has $1.8 billion in receivables that
have been past due for more than three months
Boeing Capital Corp., faced with mounting delinquencies from Hawaiian Airlines and other customers, reported yesterday that 23.4 percent, or $1.76 billion, of its $7.5 billion in total receivables were more than 90 days past due at the end of the second quarter.
The financing unit of Boeing Co. said in a Securities and Exchange Commission filing that Hawaiian, the aircraft lessor's sixth-largest customer, owed Boeing Capital $466 million as of June 30, including $95 million worth of installments that were more than 90 days late. In the first half of the year, Boeing Capital said that $4 million of the $22 million it received from Hawaiian was more than 90 days delinquent.
Hawaiian, which filed for Chapter 11 reorganization bankruptcy on March 21, has been attempting to renegotiate its leases with Boeing Capital on 16 Boeing 717s that are used for interisland flights and three Boeing 767s that are used for mainland routes.
Another 767 that Hawaiian was scheduled to take in April was canceled and is being remarketed by Boeing Capital. The lessor and Hawaiian have so far agreed to three extensions to give themselves time to renegotiate their leases. The latest extension expires Aug. 31, after which Boeing Capital would be allowed to repossess its planes unless a new lease or extension is reached.
Boeing Capital executive Anil Patel, who negotiates leases with Hawaiian, said he's had some initial discussions with Hawaiian Airlines trustee Joshua Gotbaum but hasn't started talking specifics.
"What we're trying to do is allow Josh Gotbaum to basically understand what the financial condition of the airline is and to get his bearings," Patel said. "We haven't identified when those (detailed) discussions will start yet. But we think he's very capable and we're very encouraged."
AirTran is Boeing Capital's largest customer with 11.4 percent, or $1.4 billion, of the lessor's total portfolio. United is next at 9.9 percent, or $1.2 billion, followed by American, 6.9 percent, $825 million; ATA, 5.6 percent, $667 million; Boeing, 4.6 million, $551 million; and Hawaiian, 4.5 percent, $537 million.
Boeing Capital, which said it may take a charge against earnings if its waning 757 jet line is closed, said nonperforming assets grew to 8.9 percent, or $1.07 billion, of its total $12 billion portfolio at the end of the second quarter. Nonperforming assets represented 4.6 percent, or $545 million, of the portfolio at the end of 2002.
