- Boeing is in talks with the Trump administration about aid for the manufacturer and other parts of the sector.
- Coronavirus presents Boeing with a fresh crisis as its 737 Max planes have been grounded for more than a year.
- A plunge in travel demand may dry up already weak demand for new planes.
Boeing said it is in talks with Trump administration officials about potential aid for the aircraft manufacturer and others in its supply chain as coronavirus and measures to contain it roil the travel industry.
Measures to contain coronavirus are rippling through the economy as companies face a plunge in demand as travelers, diners, business travelers and others choose or are instructed to stay home to stop the illnesses' spread.
The travel industry is at the epicenter of the COVID-19 crisis and airline chiefs have slashed flights, frozen hiring and either laid off or asked employees to take unpaid leave.
The crisis hits Boeing after it was struggling with the fallout of two fatal crashes of its 737 Max, which is its best-selling plane. The planes have been grounded for the year after the second of the two disasters, which together killed all 346 people on board. The Chicago-based company earlier this month maxed out earlier than expected a $13.8 billion loan it secured in January to shore up cash.
Boeing's conversations with Trump administration officials are ongoing and include assistance throughout aviation, a sector that includes Boeing suppliers like General Electric and Spirit Aerosystems, and airports.
"We're leveraging all our resources to sustain our operations," Boeing said in a statement. "Meanwhile, ready short term access to public and private liquidity will be one of the most important ways for airlines, airports, suppliers and manufacturers to bridge to recovery, and we appreciate how the administration and Congress are engaging with all elements of the aviation industry during this difficult time."
U.S. airlines are seeking more than $50 billion in government assistance, including $25 billion in direct grants and another $25 billion in zero-interest loans.
Some lawmakers want something in return.
Sen. Edward Markey, a Massachusetts Democrat said he said "any infusion of money to the airlines must have some major strings attached – including new rules to prohibit consumer abuses like unfair change and cancellation fees; protections for front-line workers like flight attendants, pilots, and airport workers; special consideration for our smaller, regional carriers not represented by the major trade associations; and the development of long-term strategies and targets to reduce the carbon footprint of the airline industry."