Boeing renting out 747s to cargo carriers

Washington

BOEING has a temporary plan to save the iconic but slow-selling 747 jumbo jetliner: buying its own planes and leasing them to cargo haulers.

With the effective shutdown by Congress of the Export-Import Bank - which traditionally has helped overseas carriers purchase planes - Boeing lost a key sales tool. Making matters worse, leasing companies have been hesitant to finance a plane with a dwindling customer base.

So Boeing is now renting out the massive, hump-backed 747s to cargo carriers in countries such as Russia and Azerbaijan, which increases the company's exposure to potential defaults on payments.

Through the end of last year, Boeing had provided financing valued at US$1.26 billion to 747 customers through Boeing Capital Corp, regulatory filings show. That's about a fivefold increase from the close of 2012. In fact, 747-related loans and operating leases n…