$60B Aid Request Hinges on Boeing's 737 MAX Crisis and COVID-19 Fallout
Boeing's request for $60B in aid from the government has raised questions about its financial situation. The company relies on government funds or government-backed aid as it has already used up its existing credit facilities.
A previous report had criticized Boeing for requesting aid while maintaining CEO payment and dividends, but the company later suspended these payments.
The request for aid is put in the context of the Boeing 737 MAX crisis, but the author believes that COVID-19 is a more pressing issue that affects not just Boeing, but companies across various industries.
In this report, the author explores whether the Boeing 737 MAX crisis can be connected to the $60B requested by considering liabilities, pre-delivery payments, and potential refunds if the 737 MAX were never to fly again.