Boeing boss warns of lasting effect of Covid-19

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Boeing boss warns it will take years for the aircraft manufacturing industry to recover from effects of the pandemic

The impact of coronavirus on the aircraft manufacturing industry will be felt for years, Boeing’s chief executive has said.

Just a day after arch-rival Airbus said it was ‘bleeding cash’ and may not survive, Boeing boss David Calhoun said: ‘We are in an unpredictable and fast-changing environment, and it is difficult to estimate when the situation will stabilise.

‘But when it does, the commercial market will be smaller and our customers’ needs will be different. We know we are going to have to borrow more money in the next six months in order to get through.’

Boeing boss David Calhoun said: ‘We are in an unpredictable and fast-changing environment, and it is difficult to estimate when the situation will stabilise.

The Covid-19 pandemic has seen airlines parking 2,800 jets.

Boeing was in trouble before the coronavirus outbreak with its best-selling jet, the 737 Max, grounded after two crashes killed 346 people. 

The outbreak has added to Boeing’s troubles as airlines delay or cancel plans to buy new jets.

It also caused Boeing to shut plants for several weeks, although it has reopened in the Seattle area and will resume production in South Carolina in less than a week.

Boeing is expected to apply for a share of £13.7billion in low-interest loans the US has set aside for defence companies.

Rival Airbus this week said it was furloughing 3,200 workers at its Broughton site in North Wales where it makes aircraft wings.

Airbus chief executive Guillaume Faury told staff: ‘We’re bleeding cash at an unprecedented speed, which may threaten the very existence of our company.’

 

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