Boeing Co. (NYSE: BA), a world’s second-largest plane manufacturer shares fall in premarket trading on Wednesday. Boeing Co. asked for $60 billion support from the US government in the fight against the coronavirus outbreak.
Boeing said that the $60 billion support would assist their 17,000 suppliers and 2.5 million jobs which experienced a shock because of coronavirus pandemic.
Boeing shares went down by 17% to $102.94 at the start of trading on Wednesday. Boeing shares have plummeted 62% this year which is the worst decline on the target. Boeing has a trading volume of roughly $54.31 compared to its average volume of $12.39 million.
Boeing is facing a new financial crisis as airlines around the globe face the risk of bankruptcy because of coronavirus pandemic. They might not be able to complete the purchases of planes they had ordered. Most airlines around the world are already parking the planes because of travel bans almost in all countries.
According to the CAPA Centre for Aviation, most airlines in the world will be bankrupt by the end of May unless governments get involved.
President Donald Trump has announced financial assistance for Boeing Co. on Tuesday. He said that before the 737 MAX crisis he believed Boeing the best company in the world but after the hit it faced a crisis. Trump announced the package for the company and said that we must protect Boeing.
The company tweeted: “We appreciate the President’s support for the over 2.5M jobs and 17,000 suppliers Boeing relies on every day as the top US exporter. Access to $60B in public & private liquidity would support the health of the broader aviation industry.”
We appreciate the President’s support for the over 2.5M jobs and 17,000 suppliers Boeing relies on every day as the top US exporter. Access to $60B in public & private liquidity would support the health of the broader aviation industry.
— The Boeing Company (@Boeing) March 18, 2020
The company said that this $60B support will help airlines, suppliers, airports, and manufacturers to combat the impact of coronavirus outbreak. Boeing revealed that the funds would help the aviation industry because any liquidity support to Boeing will be used for payments of suppliers to maintain the health of the supply chain.
Boeing has already been struggling because of the Boeing 737 MAX. Boeing 737 MAX was the brand-new aircraft of Boeing Co. which crashed just minutes into a flight and killed 346 people on board. According to the company, the crisis has cost nearly $19 billion.