Boeing has publicly announced that the company supports a $60 billion aid package for the aerospace manufacturing industry. The manufacturer, who recently lost its Washington State tax cuts, which had amounted to 40%, has had to navigate some tough waters, including the fact that its cash flow was negatively impacted by the grounding of the 737 MAX. Boeing ended 2019 with a full-year net loss of $636 million.
Now, the recent outbreak of coronavirus threw another curveball towards Boeing and its suppliers. While the manufacturer so far has continued production at its sites in the United States, it also implemented a policy allowing some employees to work from home, as it announced on March 16, 2020. So far, fifteen Boeing employees were diagnosed with COVID-19, reported the New York Times.
The Chicago-based company has stated that it appreciated the support of the United States President for Boeing to remain the number one United States’ exporter, with 2.5 million jobs and 17,000 suppliers behind the manufacturer’s success, highlighted Boeing’s press release.
The $60 billion aid package, in the form of access to public and private liquidity, including loan guarantees, would be dedicated to the whole United States aerospace manufacturing industry.
“This will be one of the most important ways for airlines, airports, suppliers and manufacturers to bridge to recovery. Funds would support the health of the broader aviation industry, because much of any liquidity support to Boeing will be used for payments to suppliers to maintain the health of the supply chain.”
On the other side of the Atlantic Ocean, Airbus announced that it has temporarily stopped production in Spain and in France to prevent coronavirus from spreading.
