Boeing seeking aid for itself, suppliers, airlines

Boeing (NYSE:BA) is asking for short-term aid from the Trump administration and Congressional officials for itself, suppliers and airlines, Bloomberg reports.

Boeing is seeking to avoid layoffs and damage to hundreds of smaller companies that make parts and systems for its aircraft, the report says.

The aerospace sector faces “extreme disruptions” in the near term and possibly longer, says BofA analyst Ron Epstein.

“Global airline business models will be stressed, airlines will cut capex, growth plans will be slashed and there will be airline bankruptcies,” Epstein writes. “The 737 MAX program could be especially hard hit due to its own idiosyncratic circumstances.”

Also, S&P downgrades Boeing’s debt rating a notch to BBB from A-, saying “cash flows for the next two years are going to be much weaker than we had expected,” due to the 737 MAX grounding and sharply reduced global air travel due to the coronavirus.

https://seekingalpha.com/news/3552316-boeing-seeking-aid-for-suppliers-airlines-bloomberg