Boeing called for at least $60 billion in financial support for US aerospace companies on March 17 as they struggle with a steep falloff in revenue amid the coronavirus pandemic, Forbes reports.
Any taxpayer-funded aid for Boeing is bound to raise criticism after a year of harsh scrutiny of its failures that led to the crash of two models of the 737 MAX.
Boeing stressed in a statement that financial support for the company would flow through to its suppliers and support the broader health of the US aerospace industry. The report didn’t specify how much of the $60 billion the company believes it needs.
“The long-term outlook for the industry is still strong, but until global passenger traffic resumes to normal levels, these measures are necessary to manage the pressure on the aviation sector and the economy as a whole,” Boeing said in the statement.
The planemaker and its suppliers are facing a mounting financial crisis after Boeing ceased production in January of the 737 MAX, its flagship aircraft.
Boeing burned through billions in cash as it produced roughly 400 models of the plane that it has been unable to deliver to customers due to the plane’s grounding by global regulators.
Their stress has been compounded by the sudden decline in business of their airline customers as coronavirus has spread worldwide, raising the specter that many carriers will delay delivery of planes, slowing Boeing’s recovery once the 737 MAX returns to service.
Parts manufacturers also face the prospect of a sharp slowdown in aftermarket sales with airline parking planes and deferring maintenance.