Boeing has $15bn in liquidity and can survive in short term; credit markets need to reopen

By Scott Hamilton

Boeing CEO David Calhoun. Source: CNBC.

March 24, 2020, © Leeham News: Boeing CEO David Calhoun said the company has $15bn in liquidity and can survive in the short term, but federal aid is needed as long as the credit markets aren’t open.

The US Defense Department is working to accelerate payments to Boeing, which has a large defense business. Revenue at Boeing Global Services is down as airlines across the globe shut down or sharply reduced operations.

Calhoun made his remark on CNBC’s Squawk Box today.

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Boeing suspends production of wide-bodies

March 23, 2020, (c) Leeham News: Boeing today announced it will suspend production of its wide-bodies for 14 days, beginning Wednesday.

Production slowdown begins today.

The move is in response to the COVID-19 crisis. Boeing is the last of the Big Three aircraft manufacturers to do so. Airbus last week suspended production in France and Germany, restarting slowly today. Embraer suspended production last week.

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Airbus expands virus precautions across production lines, company

By Scott Hamilton

Guillaume Faury

March 23, 2022, (c) Leeham News: Airbus is working to make its production lines safe, but will have lower rates than before the coronavirus pandemic caused lockdowns in France and Spain, the CEO said today.

Airbus temporarily shut production lines in these two countries last Monday. Production resume at a low, unspecified rate. He said initially production “efficiency” may be very low.

Guillaume Faury, the CEO, however, pointed to China as perhaps an example to follow with its other lines.

The Tianjin line was shut down for several weeks as the COVID-19 virus spread across China. It recently resumed and is back near the pre-shut down level of 6/mo. Faury said 99% of the employees are back at work.

Chinese airlines are back to 30% of pre-grounding levels.

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Pontifications: Getting around as airline service tanks

By Scott Hamilton

March 23, 2020, © Leeham News: There were times last week when the number of private airplanes in the air seemed to outnumber the airliners.

Periodic checks on FlightRadar24 of the skies around Seattle showed a dearth of commercial flights. By Friday, the US carriers already sharply pulled down operations. International flights were largely canceled.

Most cutbacks are likely.

With passenger traffic all but dried up—some flights had load factors of 20%-30% and others only one or two passengers—how might people get around while minimizing exposure to the coronavirus?

The private, general aviation airplanes are one choice.

Using corporate jets is another. But this option isn’t inexpensive, even when consolidating passengers.

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Airbus boosts liquidity to €30bn with new credit line; suspends dividend

By Scott Hamilton

March 22, 2020, (c) Leeham News (Seattle Time): Airbus today announced a new €15bn credit facility to boost liquidity during the COVID-19 virus crisis.

In an early morning release March 23, Toulouse time, Airbus said it is suspending its dividend and its 2020 guidance.

“Our first priority is protecting people while supporting efforts globally to curb the spread of the coronavirus.” said Airbus Chief Executive Officer Guillaume Faury.

“We are also safeguarding our business to protect the future of Airbus and to ensure we can return to efficient operations once the situation recovers. We have withdrawn our 2020 guidance due to the volatility of the situation. At the same time, we are committed to securing the liquidity of the Company at all times through a prudent balance sheet policy.”

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