Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Boeing in talks for short-term U.S. government assistance

Stock MarketsMar 16, 2020 09:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The company logo for Boeing is displayed on a screen on the floor of the NYSE in New York

By David Shepardson

WASHINGTON (Reuters) - Boeing Co (N:BA) confirmed it is in talks with senior White House officials and congressional leaders about short-term assistance for itself and the entire aviation sector.

Boeing, already struggling to win approval from regulators for its 737 MAX to return to service after two fatal crashes in five months, is in talks with the U.S. government to try to win support for manufacturers, suppliers, airlines and airports, the person said.

This discussions come on a day the planemaker saw its stock plummet 24% to $129.61, and is off more than 60% over the last month as the coronavirus pandemic slashed travel demand worldwide. Earlier on Monday, S&P Global (NYSE:SPGI) downgraded Boeing's credit rating and lowered its free cash flow expectations for the company.

The Boeing talks for short-term government aid were reported earlier by Bloomberg News, and later confirmed by a source familiar with the situation to Reuters.

Boeing said late Monday that ready short-term access to public and private liquidity will be one of "the most important ways" for airlines, airports, suppliers and manufacturers to recover. "We appreciate how the administration and Congress are engaging with all elements of the aviation industry during this difficult time," is added.

Boeing said it is "taking steps to manage the pressure on our business. We’re leveraging all our resources to sustain our operations."

U.S. airlines and cargo carriers have said they are seeking at least $58 billion in loans and grants along with additional tax changes, while airports have sought $10 billion.

Boeing declined to say how much in assistance it was seeking or in what form it might take, but added the entire U.S. aerospace industry that "supports over 2.5 million jobs and 17,000 suppliers – is facing an urgent challenge resulting from the coronavirus pandemic."

U.S. President Donald Trump, in a tweet late Monday, wrote "the United States will be powerfully supporting those industries, like Airlines and others, that are particularly affected" by the coronavirus. A White House official confirmed the talks "to discuss their views generally just as we have with others."

Boeing and airlines are making the case that they need quick assistance and hope that there will be action in days, the person familiar with the talks and airline officials said.

Reuters reported Wednesday that Boeing was planning to draw down the rest of a $13.8 billion loan it agreed last month.

Boeing’s total debt nearly doubled to $27.3 billion in 2019, as it compensated airlines and grappled with additional production costs for the 737 MAX even as the grounding prevented it from delivering the aircraft to buyers.

Last week, Boeing said it was freezing new hiring and overtime except in certain critical areas to preserve cash, the U.S. planemaker’s chief executive.

Boeing Chief Executive Dave Calhoun told employees on Wednesday the company was taking steps to address the business pressures that result from “the pain our customers and suppliers are feeling" and added that layoffs or furloughs were also a “real possibility."

Airlines are slashing flights and it raises questions about whether they will cancel orders for the MAX, which has been grounded for just over a year.

Boeing idled production of the MAX in January and has said it hopes to win approval for return to service in mid-2020.

Boeing in talks for short-term U.S. government assistance
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Jason Zou
Jason Zou Mar 17, 2020 12:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Boeing looks now like GM right before its bankruptcy.
ZhonniBad Okpara
ZhonniBad Okpara Mar 16, 2020 10:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If Boeing knows what is good for it, it should go redesign the 737 otherwise it will be in bankruptcy. People will not trust the software, they don't trust the plane, and they don't trust Boeing for putting profit over safety. I see restructuring written all over Boeing.
Privacy Please
WTIHedge Mar 16, 2020 10:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I also need short term financing from the government.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email