More fallout from the shutdown of the Export-Import Bank and other problems in the satellite industry:
Boeing Co (BA.N) on Monday told its workers that it expected to cut as many as “several hundred” jobs in its satellite business through the end of 2015 due to a downturn in U.S. military spending and delays in commercial satellite orders.
Multiple commercial orders were being delayed by recent failures of launch vehicles and uncertainties about the future availability of financing from the U.S. Export-Import Bank, whose government charter lapsed on June 30, the company told key managers in an internal communication.
Boeing spokesman Tim Neale confirmed the reductions and said the total number of people affected would be finalized in coming months. Some could find work in other parts of Boeing, he said.
He said the reductions were “necessary to remain competitive for ongoing and future business.”
Statement by Aerospace Industries Association President and CEO David F. Melcher on Congress allowing the authorization of the Export-Import Bank to lapse
Arlington, Va. —Today Congress missed an opportunity to support thousands of American jobs at firms across the nation that are striving to compete in a global marketplace tilted against them by foreign governments and subsidized competition. Despite the Export-Import Bank of the United States having the support of broad bipartisan majorities in both chambers of Congress, a small minority has prevented a vote reauthorizing this important export financing tool for U.S. exporters.
Washington, D.C. (Ex-Im Bank PR) – Continuing its support of the space industry in America, the Export-Import Bank of the United States (Ex-Im Bank) has authorized a $105.4 million loan to Space Communication Ltd. of Ramat Gan, Israel, to finance the Space Exploration Technologies (SpaceX) launch of the Amos-6 communications satellite, the purchase of American made-solar arrays, and insurance brokered by Marsh USA (Marsh).
Washington, D.C. (Ex-Im PR) – In a decision that will support thousands of high-tech jobs in the U.S., the board of the Export-Import Bank of the United States (Ex-Im Bank) has authorized two transactions aggregating $461 million to underwrite the export of American-made satellites to Hong Kong.
In the first transaction, the Bank authorized a $171.29 million direct loan to ABS to finance the purchase of a FS1300, C/Ka/Ku-band geostationary satellite from Space Systems/Loral Inc. (SS/L) and insurance from Aon. The satellite is scheduled to launch in 2013.
Additionally, the Bank authorized a separate $289.71 million direct loan to ABS to facilitate the purchase of two 702SP C- and Ku-band geostationary satellites from Boeing Satellite Systems International (Boeing), insurance from Aon, technical support, and the launch of both of the satellites with Space Exploration Technologies (SpaceX) Falcon 9.
AIA PR — The Aerospace Industries Association strongly urges Congress to pass the bipartisan agreement reauthorizing the Export-Import Bank. With the May 31 deadline swiftly approaching, it is imperative that Congress act quickly.
“This agreement helps level the playing field versus foreign competitors who receive substantial financing from their own governments,” said AIA President and CEO Marion C. Blakey. “We can’t expect American companies to compete with one hand tied behind their backs.”
Statement by AIA President and CEO Marion C. Blakey
The Aerospace Industries Association strongly supports the bipartisan amendment offered by Sen. Maria Cantwell (D-Wash.) and co-sponsored by Sen. Lindsey Graham (R-S.C.), which reauthorizes the Export-Import Bank through September 30, 2015, and increases the cap on its lending authority. Without the passage of this amendment the bank runs the risk of losing its important ability to help American companies export.