Boeing Demands $60 Billion in Aid for U.S. Aviation Sector

Boeing Demands $60 Billion in Aid for U.S. Aviation Sector

Boeing Tuesday demanded a $60 billion lifeline aid for the struggling U.S. aerospace manufacturing sector, which is suffering from huge losses from the grounding of 737 MAX and coronavirus pandemic.

Boeing Demands $60 Billion in Aid for U.S. Aviation Sector

Boeing spokesperson Gordon Johndroe subsequently stated the company “helps a minimum of $60 billion in access to public and private liquidity, along with loan ensures, for the aerospace manufacturing sector.”

Boeing refused to say how much of that would be for the plane manufacturer versus loan guarantees for its suppliers; it was unclear if U.S. banks would loan any of the over $60 billion without authorities backing.

The U.S. plane manufacturer has informed legislators it needs crucial government support to fulfill liquidity needs and it cannot raise that in present market situations, the individuals stated.

Boeing confirmed Monday it was discussing with the administration about the short-term aid, while U.S. President Trump stated Tuesday the U.S. government would offer support. Boeing has noted that about 70% of its revenue flows to its 17,000 suppliers and has told legislators that without vital assistance, the entire U.S. aviation manufacturing industry could collapse.

The amount of aid Boeing needs stays in flux based on market conditions and the way long the crisis lasts. Congressional delegates are reviewing Boeing’s cash needs as Congress considers a stimulus and rescue package that might exceed $1 trillion.

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