Boeing Among Travel-Related Firms Tapping $18 Billion Lifelines

(Bloomberg) --

Closed borders, travel bans and canceled vacations have sent aircraft companies such as Boeing Co. rushing to draw on emergency credit lines or arrange new short-term financing as the pandemic rages.

Last week, planemakers and leasing companies including Air Lease Corp. and AerCap Holdings tapped at least $18 billion in loans and revolving credit facilities -- a kind of corporate overdraft -- in the face of an unprecedented downturn for the travel history.

• Boeing had already used half of a $13.8 billion short-term loan as it battled with the Max jetliner crisis, and drew on the rest as the virus turned into a pandemic
• Most U.S. airlines have either raised new term loans or drawn on revolving facilities which were largely untouched until the coronavirus hit
• Air France-KLM is the only European airline to have said that it’s turned to a revolving loan to date
• Read more: Airlines Plead for State Relief After Virus Pummels Travel (2)

These are last week’s top corporate borrowers from the travel sector

Europe, Middle East Loans

European borrowers account for $22 billion out of the $73 billion of revolving facilities and new loans available to the travel industry globally

• Seven carriers have around $4.5 billion of revolving facilities available between them.
• British Airways Plc has the biggest -- $1.75 billion -- followed by Air France-KLM with the equivalent of $1.23 billion, according to data compiled by Bloomberg.
• Virgin Atlantic Airways, which has called for government aid for the sector, has $150 million available.

To contact the reporter on this story: Jacqueline Poh in London at jpoh39@bloomberg.net

To contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Chris Vellacott

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