Boeing, the US aircraft maker, is facing a double crisis due to the spread of the Corona virus, in addition to the problems associated with its 737 MAX aircraft.
According to the statement, the aviation giant, which makes the US presidential plane and civilian and military aircraft, requested about $ 60 billion as federal support for the aviation industry in the United States, without being clear after the mechanism for the work of this rescue plan.
"Boeing is on the brink, and it will not survive without a government bailout," said Bill Akman, a prominent investor in reserve coverage funds. The company suffered mainly from financial pressures even before the Corona virus crisis, as its 737 Max planes, which were considered bestsellers, were out of service for more than a year due to two deadly catastrophes, and this resulted in losses estimated at about $ 18 billion expected to increase.
The picture became more and more bleak due to the Corona crisis, with the massive decline in demand for aviation, which puts the company's customers in difficult economic conditions, and these developments led to a decline in Boeing shares, and made its market value on Friday about $ 54 billion.
The company announced that it had frozen the distribution of its revenues until further notice, and that its CEO, Dave Calhoun, and Chairman of the Board, Larry Kellner, would stop the payment until the end of the year. The company, which had previously confirmed that the buybacks had been stopped, had announced that the program would remain indefinitely suspended.
And Boeing's double crisis casts shadows on other companies, but it still enjoys significant support in Washington due to its importance to the American economy, by employing approximately 130,000 people. This figure does not include the largest group workers employed by the group's 17,000 suppliers. President Donald Trump gave the green light for tough measures to help companies, telling reporters at a news conference: We must protect and help Boeing.
In a financial evaluation, the company mentioned that there are various options of approaches, which are currently being discussed to support the aviation industry in the United States, while refusing to elaborate on the options presented. Aid to the aviation sector is not covered by a $ 1 trillion fiscal stimulus plan, currently being drafted in Congress, although it includes aid to airlines.
An option for the government to take a stake in Boeing was discussed, and the Oregon Democrat Earl Blumenauer said: The taxpayers must obtain shares in the company in exchange for aid so that people benefit from their investment when the company is financially stable. Boeing should seek protection from bankruptcy, as General Motors and Chrysler did after the 2008 financial crisis in accordance with Chapter 11 and restructure its financial system.
