Boeing wants $60 billion injected into aerospace industry

President Trump recognises need to support Boeing through dual crisis which has seen stocks tumble
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Boeing has supported a request for the US government to inject at least $60 billion into the aerospace industry to help it weather the crisis created by the Covid-19 outbreak.

President Trump said his administration would support Boeing, which has been grappling with the grounding of its best-selling 737 Max and now the impact of the coronavirus on its customers and supply chain.

The proposed funding would provide liquidity for Boeing and companies in its supply chain at a time when demand for air travel has all but disappeared, stripping airlines around the world of their income.

“Funds would support the health of the broader aviation industry, because much of any liquidity support to Boeing will be used for payments to suppliers to maintain the health of the supply chain,” Boeing said in a statement.

“The long-term outlook for the industry is still strong, but until global passenger traffic resumes to normal levels, these measures are needed to manage the pressure on the aviation sector and the economy as a whole.”

While Boeing’s income has been damaged by the ongoing 737 Max troubles, which show little sign of ending in the near-term, its importance to the overall US economy warrants significant support from Washington.

“We appreciate the support of the President and the Administration for the 2.5 million jobs and 17,000 suppliers that Boeing relies on to remain the number one US exporter, and we look forward to working with the administration and Congress as they consider legislation and the appropriate policies, the company said.

Trump previously criticised Boeing’s handling of the Max situation but ceded that the US Government “[has] to protect Boeing and help Boeing”.

The US government is looking at $50 billion in assistance for the airline industry, according to media reports. Although, federal funding packages could come with conditions.

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