Boeing Will Restructure Its Commercial Aircraft Finance Arm

As part of an effort to streamline its organizational structure, Boeing (NYSE:BA) said on Thursday that it will merge its aircraft financing division with its commercial jets division.

Boeing stated that, following the retirement of Boeing Capital Corp (BCC) President Tim Myers this spring, it will "realign" the commercial aviation unit's finance arm while retaining "strong cooperation" with the company's treasury arm. Airfinance Journal previously reported the development.

Boeing Capital provides asset-based financing and leasing to prospective commercial aircraft purchasers. By relocating the financing organization under its commercial airplane division, Boeing wants to streamline the purchasing process for its customers.

The reorganization would "concentrate resources on our core business of servicing our customers and their finance requirements," Boeing Chief Financial Officer Brian West said in an internal memo obtained by Reuters.

A spokeswoman for Boeing stated that the change will give airlines with "more consistent help" for arranging aircraft finance.

West stated in a message that Rob Martin, chief financial officer of the commercial airline division, and David Whitehouse, Boeing's treasurer, will be responsible for the transfer.

The shutdown of Boeing Capital maintains Boeing's history of operating structure consolidation. The corporation announced in November a restructure of its defense segment that sought to cut its business divisions in half.