Boeing Urged to Accept Federal Aid as Plants Shut Down

After Congress approved a $2 trillion aid package last month to help struggling businesses during the coronavirus-outbreak/” target=”_self” rel=”nofollow noopener noreferrer”>coronavirus pandemic, House Democrats of Washington state have been urging Boeing to accept federal assistance.

On Monday, a letter was sent to Boeing CEO Dave Calhoun asking him to reconsider after he previously denied the possibility of government equity stakes in exchange for the federal aid. The letter was sent by Washington Democrat and chairman of the House’s aviation subcommittee, Rep. Rick Larsen, and signed by six other lawmakers.

“Given the severe harm the nation’s aerospace industry and hardworking women and men at the Boeing company are experiencing during this pandemic, we hope you will consider utilizing the economic assistance provided by the CARES Act to safeguard thousands of jobs at Boeing in Washington state and across the country,” the letter read.

Boeing is still deciding whether or not to apply for federal aid. According to coronavirus-house-democrats-urge-boeing-to-take-federal-aid-as-plants-shut-down.html” target=”_blank” rel=”nofollow noopener noreferrer”>CNBC, the company is waiting to be advised by the Treasury Department about the conditions and requirements for federal assistance. Treasury Department guidelines for the $17 billion in loans released last month allow the government to receive a warrant or stake in the borrower.

“All we want is to make sure the credit markets are open for business,” Calhoun said. If the government requires an equity stake, “we just look at all the other options and we got plenty of them.”

Additionally, over 130 of Boeing’s 70,000 employees have tested positive for COVID-19. Boeing announced on Sunday that airplane production in Seattle would be suspended until further notice. The company then announced Monday that production of 787 Dreamliner planes will halt in South Carolina.

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