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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.
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“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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Emirates Airline, the last holdout among the Gulf region‘s three major East-West carriers in retaining its workforce announced on May 31, 2020, that it had fired an undisclosed number of employees, due to the near-shutdown of global air travel amid COVID-19.
The other two—Abu Dhabi’s Etihad and Doha-based Qatar Airways—had already scaled back in terms of staffing as the virus spread, virtually eliminating passenger demand and causing international borders to slam shut.
While Emirates has been applauded during the pandemic for continuing to run repatriation flights around the globe, as well as delivering cargo and critical supplies, it has been dramatically affected by the halting of international passenger travel, just like the rest of the world’s airlines.
In a statement, the company said, “We have endeavored to sustain the current family as is…but have come to the conclusion that we, unfortunately, have to say goodbye to a few of the wonderful people that worked with us.”
Without revealing any particulars of the mass firing, Emirates assured that those being axed from its workforce would be treated, “with fairness and respect.”
ABC News reported that to try and balance some of the immense losses the airline continues to suffer, Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, injected an undisclosed amount of equity into its operations back in March.
Although the flag carrier, owned by a Dubai sovereign wealth fund, had already reduced its staff members’ pay during the course of the global health crisis.
Meanwhile, Emirates’ home base, Dubai International Airport—typically the world’s busiest in terms of international passenger traffic—has also been running only a fraction of its normal operations.
Dubai, which has positioned itself as a critical hub for the free movement of people, goods and capital from around the globe (all of which the pandemic has disrupted), now depends heavily upon a resumption of activity at its airport.
For more information, visit emirates.com.
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