Boeing

Boeing asks 60 billion to support the aviation sector

Summary

Boeing asks for $50 billion in aid from the government Description video: The aerospace giant says it needs that money to pay its employees during slumping sales as the coronavirus outbreak continues. Boeing asks 60 billion to support the aviation […]

Boeing asks for $50 billion in aid from the government

Description video:
The aerospace giant says it needs that money to pay its employees during slumping sales as the coronavirus outbreak continues.

Boeing asks 60 billion to support the aviation sector

Boeing seeks $ 60bn in government support for aerospace industry hit hard by coronavirus pandemic.

Donald Trump said earlier that his administration will support a leading US defense contractor and one of the world’s two largest aircraft manufacturers..

«We appreciate the support of the President and the Administration for the 2.5 million jobs and 17,000 suppliers Boeing needs to remain the top US exporter. We look forward to working with the administration and Congress», – the company said in a statement.

Coronavirus has reduced demand for air travel to a minimum, as a result of which airlines are forced to cut costs. Market participants worldwide, including Delta, American and United, park hundreds of aircraft in hangars and minimize capital costs, putting Boeing and its European competitor Airbus into distress.

Boeing said the funds could come in the form of loan guarantees for the company and the rest of the aerospace industry, which includes United Technologies., General Electric and Spirit Aerosystems.

Any liquidity provided to the company will be used to make payments to suppliers to keep the supply chain operational.

US Airlines Seek More than $ 50 Billion in Government Aid to Overcome Crisis.

«The long-term outlook for the industry is still strong, but until global passenger traffic recovers to normal levels, these measures are needed to manage pressure on the aviation sector and the broader economy.», – noted in Boeing.

The aircraft maker’s share price has dropped nearly 55% this month, to close on Tuesday at a four-year low of $ 124.14.

A company spokesman said they are currently not making any changes to staffing, dividends, or salaries..

In turn, Southwest executives, JetBlue, Delta and United are either cutting salaries or abandoning them altogether.

Boeing asks 60 billion to support the aviation sector