"The health crisis is unlike anything we have ever experienced," Calhoun said, before detailing just how far the air travel industry has fallen. With passenger demand down more than 95% from early March, airlines in the U.S. have parked more than 2,800 planes, and airlines globally are on pace to lose $314 billion this year, according to the International Air Transport Association.
As a result, Calhoun says airlines are"grounding fleets, deferring airplane orders, postponing acceptance of completed orders, and slowing down or stopping payments." Calhoun says,"It will take two to three years for travel to return to 2019 levels and an additional few years beyond that for the industry's long-term growth trend to return." When the turmoil in the airline industry does stabilize, he says"the commercial market will be smaller, and our customers' needs will be different."
The Boeing chief executive, who just assumed the role in January after more than decade on Boeing's board of directors, says the company will need to borrow more money over the next six months to stay afloat and keep paying suppliers. Boeing was already reeling from two 737 Max plane crashes that killed 346 people and it had drawn down a nearly $14 billion credit line last month, before the coronavirus pandemic took a further toll on its business.
Company executives have been in talks with officials at the U.S. Treasury Department about a possible government loan made available by the $2.3 trillion coronavirus relief act that Congress passed last month, but Boeing has balked at terms that could give the government an equity stake in the aerospace giant.due to the pandemic, but production cuts are likely at the facilities, as airlines no longer need the new planes they've ordered.
Thoughts & prayers
I am OK with this
Oh well. Fuck em.
So?
Let them burn for all I care
Maybe, they could eat less avocado toast?
Tara Reade coverage someday?
Guess they should have used their tax scam money more responsibly. Are we collecting thoughtsandprayers? 🙄
I smell a baggage carry rate hike.
Weigh that against the gazillions they’ve already made, and I have no sympathy.
And they’re refusing to refund tickets to travelers complying with stay at home orders, so screw em.
But be sure to decimate school funding.
It’s called insurance and you can bet many of these airlines had it
dontcare
They won’t give my money back for a $400 ticket the event was canceled and I have nowhere to go.
Now they have time to rip the seats out and re-install them 6 feet apart.
Diddums.
Aw, too bad. Let them rely on the billions they’ve made of our backs.
Screw ‘em. Let ‘em crash and burn, then bring them back heavily regulated to focus on safety and efficiency rather that profits.
95% wow
Well most Americans can’t even get vacation time - let alone afford to go on a vacation! I don’t think a lot of us care! Plus it’s better for the Earth!
Did they try bringing lunch from home and ordering less avocado toast?
Heart bleeds for them especially after the way they treat passengers
Get that public money rolling into those company headquarters RIGHT NOW! Oh wait...16 million unemployed and so forth... Why worry about the airlines? Ain't gonna be all that many folks with money to fly anyways.
We bout to have $20 airfare and $1000 bag fees after this is over.🤔😂
Good to know that after years of mismanagement Boeing looked to it’s Board of Directors for a new CEO instead of trying to find decent leadership.
They got billions we got 1200 dollars. 4 bills passed now with trillions in spending and we all got 1200 dollars and still have to pay rent
And they got a huge tax cut last year so...
Oh no, what will those shareholders do?
And I could not care less.
Less planes in air means less heating of the earth.
So? My 60 year old mom just got laid off and is without a job for the first time in her adult life. Like I give a fuck about some billionaire ass companies
MikeElk
Good!
Hopefully they didnt file for unemployment in Florida.
Bull shit.
Hang on, I can't find my tiny violin.
And planes crashing has nothing to do with it
Does that mean he will take a 75% pay cut?
Wow! Such great support for people who safely transport you and your families around!
Or for the fact that you produced a plane that no one is allowed to fly or will ever have the confidence to
Its going to take at LEAST 3weeks of baggage fees and seat 'upgrades.'
And yet he still supports Trump. Pathetic worm.
No one likes airlines.
Everything trump touches dies.
follow the $$$$$$ GOP DOUGH BOY
what ever happened to contingency planning?
I think he actually meant that 737 fiasco.
But I bet the CEO’s compensation won’t miss a beat.
Should have had that DaveRamsey six month emergency fund.
Welcome to reality. The whole world is gonna be working through recovery for awhile. I’m sure corporations, executives, board member, stockholders et al. will survive. Making millions per year can be trimmed down for a bit.
I'm sure Boeing's CEO's are struggling paycheck to paycheck .
Darn.
They'll just lobby for another war and that'll clear itself right up.
Right, like they didn't have huge problems already from their 737 fiasco.
How many years have your CEO’s made 6 and 7 figure salaries ? Yeah, use some of that to help yourselves.
Sooooooo I don’t feel sorry at all neither for Boeing. I got a simple solution for them. CEO’s lower your damn salaries and don’t take any bonuses. All the extra $ you took fr passengers use it now. Adjust your damn pockets like the real working class is doing.
If they're smart, they will keep prices low. Friends and I are salivating over affordable air travel, and many of us are planning on international trips when it's safe. They'll recover profits in sheer volume of tickets sold IF they don't fuck it up and price gouge again.
“Drop off “ was a bad choice of words coming from any upper management person at Boeing.
i'm glad to help bail them out. makes me feel so american.
COVID-737?
Plus the fact that your planes fall out of the air and you charge clients extra to buy the software to correct the problem.
Lucky they have another tax payer funded bailout after years of pushing cash out for dividends and buy backs to help soften the blow
People can’t pay rent,utilities and food. Who the fuck do you thinks makes the money? Your employer. They discard you like trash while the CEOs gets more money in a week than you’ll see in a year. Break the system.
Duh
How long will it take for executive salaries and bonuses to 'recover'? I'm sure that arc will be much steeper.
Just checked ticket prices on a route I take annually: Average $2000 for an economy seat. Was $400.
so what. Theyve become glorified Greyhound busses. They’re horrible.
Perhaps they should have saved their money and avoided buying the newest iPhones...yada yada yada ...
I don't give a fuck about billion dollar corporations failing. They aren't even going to fail, they're just not going to make AS MUCH money. JFC. Yellowstone just needs to erupt already.
The CEOs will never know discomfort. The employees will.
Fuck him. He kept my family member working in a positive facility with no PPE, sanitizing, distancing or tracing. To complete a plane that is just going to be disassembled. There are immunocomp in the home. No extra pay or health assurances. Zero sympathy here!
Nationalization since we're fitting the bill.
I don’t understand why all the libs replying are happy the airlines are suffering. Lots of blue collar workers that apparently you’re all happy are losing their jobs
Just ignore everything that was going on at Boeing before the first person got sick
Now he is blaming Boeing’s lackluster on the virus instead of the 737-Max
Easy solution fire all the executives and you're off to a great start!
That’s okay! This coming from the industry that literally nickle and dimed its consumer. Maybe when it emerges it will put customer service first.
Much like Jared Kushner's re al estate holdings, Boeing was failing long before Coronavirus....
Did Boeing forget they were neck deep in doo doo because of the 738 Max scandal? Really? Coronavirus did this to Boeing?
This pretty much sucks. I don't care for Boeing, but I work in an aerospace machine shop. It wont be around in several years wo orders. TrumpBurialPits TrumpGenocide
I think Delta is the one that goes away.
Thoughts and prayers
Hopefully decades.
make the airlines public transportation
Translation: we have an excuse to jack up baggage fees again
My heart bleeds
start driving folks. You do not need airlines for everything.
Poor babies.
Well Boeing really has no room to talk... Do we need to go down the 747 Max rabbit hole? You’d be experiencing years anyway recovering. While the rest of the airline industry was having their best several years on record, once the gaslighting is over w/ Covid it’ll bounce
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