Boeing Likes Order Outlook

In integrated defense systems, earnings from operations were $881 million, down 10%. Revenue was $8 billion, down 4%, Boeing said.

John McMahon, CEO of Genesis Lease(GLS Quote) said current delivery expectations by Boeing and Airbus assume participation by various government financing entities.

"If Boeing were to produce 480 aircraft this year, there's a need for $30 billion to $36 billion in aircraft financing, and it's the same at Airbus," McMahon said, in an interview. "That creates a need for somewhere in the range of $65 billion in financing. The expectation is that will require a higher level of support from government than has previously been the case."

Boeing said it expects to provide about $1 billion in 2009 financing. McMahon said the Export-Import Bank will likely provide about $9 billion, while the European export credit agencies will likely provide a similar level of support for Airbus. Additionally, French banks backed by their government agreed recently to provide $6.4 billion to back Airbus and the French aviation industry.

" Boeing has secured a tremendous level of orders, and they're in a relatively strong position," McMahon said. "I think they might experience a higher level of deferral than they would prefer, but generally speaking outright cancellations come with hefty penalties."