Boeing seeks help from White House, headline toss

Boeing seeks help from White House, headline toss

Boeing still collapsed 23% yesterday on Wall Street, the lowest since September 2016. Carried away by the new widespread fall in the markets, the aeronautical giant has seen its capitalization melt by 60% since the start of year. The company has suffered for many months from the immobilization of the 737 MAX following two fatal accidents, the still unknown date of return in the air, or a wave of order cancellations. A series of headwinds to which was added the coronavirus pandemic and its enormous impact on a sector which is on the verge of going through the most serious crisis in its history.

Boeing seeks help from White House

In this context, Boeing has asked White House and Congressional officials for short-term emergency aid for itself, its suppliers and the airlines to avoid a spate of mass layoffs. In a statement, Boeing confirmed that “positive and ongoing discussions are continuing with government and industry leaders” – including in the Trump administration and in Congress. “Short-term access to public and private liquidity will be one of the most important ways for airlines, airports, suppliers and manufacturers to transition to recovery … We appreciate the way the l ‘administration and Congress are engaging with all elements of the aviation industry in this difficult time. ”

The US State Will Not Drop The Industry

In a tweet, President Donald Trump said that the US government “would support the airlines 100%”:

The aerospace industry is facing “extreme disruption” in the short term and possibly beyond, says Ron Epstein, analyst at Bank of America. “In our opinion, the business models of the world’s airlines will be severely tested, carriers will reduce their investments, growth plans will be cut and there will be bankruptcies … The 737 Max program could be particularly affected because of its own idiosyncratic circumstances “.

S&P degrades by two notches!

Without further ado, S&P downgraded the Seattle group’s credit score by two notches to bring it back to ‘BBB’. The rating agency expects a cash outflow of $ 11-12 billion this year, followed by a weaker than expected recovery next year due to the prolonged grounding of the 737 Max. “In addition, the significant reduction in air travel worldwide due to the coronavirus is likely to result in an increase in aircraft order carryovers, which will put additional pressure on cash flow.”


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