During a press conference on Tuesday, Trump pointed out that Boeing got hit really hard by the global crisis and that its suppliers in the aerospace industry such as its engine maker General Electric continue to suffer. Trump reiterated that the country has to protect Boeing and that he will ensure that support is provided.
US aircraft manufacturer Boeing Co had called on the US government prior to the conference on Tuesday to provide the country's aerospace manufacturing industry with financial support to avoid a collapse amid the ongoing coronavirus epidemic. The company asked for a $60 billion lifeline from the government to offset the huge losses incurred by major companies in the industry.
Boeing is requesting for the rollout of government loan guarantees and other financial support as it and other companies are facing possible liquidation due to the epidemic. The manufacturer is particularly in peril as its flagship 737 Max planes continue to be grounded worldwide.
Company spokesman Gordon Johndroe mentioned in a statement that the company is calling for a minimum of $60 billion worth of public and private liquidity that can include loan guarantees for companies in the country's aerospace manufacturing industry.
Without government backing, companies such as Boeing will likely be unable to secure substantial loans from banks, which are already suffering from the economic effect of the outbreak.
A portion of the money Boeing is aiming to secure will likely be going to its suppliers, which have mostly been left unpaid given the company's current situation. Boeing previously noted that more than 70 percent of its revenues typically go to its more than 17,000 suppliers. If it cannot keep up with those payments, the company warned that the entire aviation manufacturing sector in the US could collapse.
Jonhdroe explained in a statement that government support will be vital in ensuring the survival of airlines, suppliers, aviation manufacturers, and airports amid the crisis. The much-needed funds will come a long way in supporting the health of the industry, he added.
On Monday, Boeing confirmed that it was in talks with some members of the Trump administration regarding the possible release of short-term financial support. US President Donald Trump previously expressed his willingness to provide Boeing with support.
Boeing's stock prices have taken a beating over the past few months with its stocks plummeting following the grounding of its planes. On Monday, the stock fell by more than 24 percent, followed by a 4.4 percent drop on Tuesday. Over the last month, the company's stock prices have declined by more than 60 percent amid the slumping travel demand caused by the pandemic.
