Boeing says it will need to borrow more money on coronavirus fallout [View all]

[turbinetree]

Source: Reuters

BUSINESS NEWS APRIL 27, 2020 / 10:50 AM / UPDATED 3 HOURS AGO

(Reuters) - Boeing Co (BA.N) will need to borrow more money over the next six months and does not expect to pay dividends again for years, as the U.S. plane maker wrestles with industry fallout from the coronavirus and the grounding of its 737 MAX jet, chief executive Dave Calhoun told shareholders on Monday.

“We know we’re going to have to borrow more money in the next six months in order to get through this really difficult moment, to provide the right liquidity to the supply chain that represents our industry,” Calhoun said during the company’s virtual annual general meeting.

“Our first priority is going to be to pay that back, the principle and the interest that goes with it.”

Boeing would continue ordering parts and services from its suppliers to ensure the smaller companies have enough business to keep them afloat during the downturn, he said.

“We have to keep that flow of money going to the supply chain so that they have some predictability around how they operate.”

Reporting By David Shepardson in Washington and Allison Lampert in Montreal, Editing by Franklin Paul and Andrea Ricci

Read more: https://www.reuters.com/article/us-boeing-agm/boeing-says-it-will-need-to-borrow-more-money-on-coronavirus-fallout-idUSKCN22921Q?il=0

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Boeing in March called for a “minimum of $60 billion in access to public and private liquidity, including loan guarantees, for the aerospace manufacturing industry.” The company has not said if it will seek government loans or tap a $17 billion fund for national security-related companies.

Boeing on Monday also said each of the company’s 12 board nominees received a majority of votes from shareholders. Two proxy advisers, Glass Lewis and Institutional Shareholder Services (ISS), had recommended that Boeing shareholders vote against key board members to show objections to the company’s handling of the 737 MAX crisis.

Calhoun did not repeat the company’s long-standing timetable of a mid-year return to service approval by regulators for the 737 MAX that has been grounded since March 2019 after two fatal crashes killed 346 people. Reuters reported last week a key certification test flight may not occur until late May or later. “We remain confident in the MAX,” Calhoun said.



So what does the engineering union (SPEEA) at Boeing think of this and what Boeing wanted from Embraer before they Boeing backed out