Will the US government nationalize Boeing?

[denem]

Will the US government nationalize Boeing?

About 12 years after the US government bailed out General Motors and Chrysler, Washington policymakers are debating how to throw Boeing a lifeline as it reels from dual crises over the coronavirus and 737 MAX.

The aerospace giant, which manufactures the US presidential jet Air Force One in addition to defense and commercial aircraft, has asked for $60 billion in federal support for the US aerospace industry, but it is not yet clear how such a bailout would function.

“Boeing is on the brink," prominent hedge fund investor Bill Ackman said this week. “Boeing will not survive without a government bailout."

Boeing's financial picture was already under pressure even before the coronavirus. The 737 MAX, which had been the company's top-selling plane, has been out of service for more than a year following two deadly crashes. The lengthy grounding has cost the company upwards of $18 billion, a figure that is expected to rise.

The coronavirus has now worsened that picture considerably, obliterating demand for flying and putting Boeing's airline customers in financial distress.

https://www.brecorder.com/2020/03/31/585037/will-the-us-government-nationalize-boeing/

[customerserviceguy]

1. Not gonna happen

Neither Senator Murray nor Senator Cantwell would let that happen.

[RB TexLa]

2. They can fail.

It would be rough but we have other air manufactures and Airbus has operations in the US.

[VMA131Marine]

6. Which are the others exactly?

[RB TexLa]

7. Other than Airbus only builders of smaller planes but

with opportunity.

[VMA131Marine]

8. But not even close to the resources necessary to compete

with Airbus. If Boeing goes, it will be Airbus or nothing, or we’ll be traveling on Russian or Chinese designed and built airliners. They’d still have to meet US regulations, but they aren’t up to western standards.

[RB TexLa]

9. They would probably be able to obtain much of Boeing's former resources.

[KentuckyWoman]

3. Where did all those profits go?

Let them pony up to cover the losses.... either that or insurance.


That's what I do at my house.

[Celerity]

4. stock buybacks, often paid for from the past bailouts, fuck 'em, let them fail, they are criminals

Boeing Crashes: $43 Billion in Share Buybacks Turn into Existential Threat

https://www.nakedcapitalism.com/2020/03/boeing-crashes-43-billion-in-share-buybacks-turn-into-existential-threat.html


Airlines and Boeing want a bailout — but look how much they’ve spent on stock buybacks

https://www.marketwatch.com/story/airlines-and-boeing-want-a-bailout-but-look-how-much-theyve-spent-on-stock-buybacks-2020-03-18

BOEING, AIRLINES, UNDER FIRE FOR $90 BILLION IN SHARE BUYBACKS, STOKE CONTROVERSY WITH BAILOUT PLEAS FOR AT LEAST $110 BILLION

https://www.newsweek.com/boeing-airlines-under-fire-90-billion-share-buybacks-stoke-controversy-bailout-pleas-least-1493934

[VMA131Marine]

5. Boeing deserves a lot of criticism for the 737 MAX,

the KC-46, the Starliner, and some other troubled programs, but ... and it’s a huge but ... they are too big to be allowed to fail. If Boeing collapses, it leaves Airbus as the sole manufacturer of commercial airliners, unless you want to see Chinese and Russian made aircraft flying passenger routes in the US at some point. We could force Boeing to merge with another company, but not without doing something to mitigate its liabilities.
If Boeing goes under, it threatens a bunch of other companies in its supply chain, GE for one, which is the sole supplier of engines for certain Boeing aircraft.