The price of one Boeing 787 aircraft could increase by $ 40 million in a rate scenario in the worst case, Aercap CEO Aengus Kelly said.
“In an absolute worst scenario, for example, an increase of 25% across the board on rates, a tit-for-tat from both sides-a Boeing 787, the price will rise by $ 40 million,” said Kelly on CNBC's “Squawk Box on Wednesday.” “Nobody will want to pay for that.”
In that kind of scenario, Kelly said that most airlines would probably turn to Airbus instead, which could give that company the chance to take 75% to 80% of the world market.
Aercap“ The largest plane in the world in the world, bought 150 aircraft, helicopters and reserve machines from Boeing last year, Kelly added.
Although it is too early to determine the exact effects of rising tariff tensions, the world economy has responded to President Donald Trump's plans, with the last addition of 25% rates for steel and aluminum imports that come into effect on Wednesday, resulting in rapid counter-measures of the European Union.
Despite a chaotic year of problems for Boeing, Kelly said that Aercap, the largest buyer of aviation assets in the world, has seen a recent improvement in quality, reliability and safety of products from Boeing.
Looking for 2025 for Boeing, Kelly emphasized that what the manufacturer really needs has cash to deliver aircraft in a reliable way. Despite a rocky year for the aircraft maker, Kelly said that he “never had a hesitation” about a Boeing plane and that the production process of the company has been considerably improved.
“Boeing has taken enormous steps in terms of quality, safety and reliability in the past year,” said Kelly. “We see it because we are on the shop floor every day to buy aircraft.”
Kelly also said despite concerns about a recession of air travel and a weaker question of Delta Air Lines Income, he remains Bullish, where the company generally continues to see a strong question. The current 'soft patch', he said, is driven by labor costs.
