Boeing CEO: Important for US government to reopen credit markets
Boeing CEO David Calhoun, in a wide-ranging interview, addresses production disruptions and plans to support the company throughout the coronavirus pandemic.
Boeing CEO David Calhoun said Tuesday the company does not want the federal government to take an equity stake in the aerospace giant, but would prefer to see support for the equity markets.
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"I don't have a need for an equity stake," Calhoun told FOX Business' Maria Bartiromo. "I want them to support the credit markets, provide liquidity. Allow us to borrow against our future, which we all believe in very strongly and I think our creditors will too. It's really that simple."
Calhoun suggested the company may reject aid if it required the government take an equity stake in the company.
"If you attach too many things to it, of course you take a different course," he said.
The company, like many in the current business environment, is attempting to save cash and has taken measures to limit the economic hardship stemming from the virus.
On Friday, the company announced it will suspend its dividend "until further notice," that Calhoun and board Chairman Larry Kellner will forgo all pay through the end of the year and that it will extend the pause in its stock buyback program, which it suspended in April 2019.
BOEING TO SUSPEND PRODUCTION AT WASHINGTON FACILITIES AMID CORONAVIRUS EMERGENCY
Airlines worldwide have seen passenger traffic and cargo volume plummet as a result of the spreading virus and travel restrictions, leaving them cash-strapped. Many carriers are parking jets and some are deferring aircraft deliveries from this year, dealing another blow to Boeing's business.