Thread regarding Boeing Co. layoffs

Can Boeing Survive Its MAX Problems?

The total loss due to the 737 MAX failure is now estimated to reach $25-30 billion.

Under its previous policies Boeing increased its share price by buying back huge numbers of its own shares. That money should have been invested in new airplane types or be kept as reserve. Boeing is now bleeding cash and needs to take up more debt to stay solvent:

The first thing to know about Boeing’s mad scramble to line up “$10 billion or more” in new funding via a loan from a consortium of banks, on top of the $9.5 billion credit-line it obtained in October last year – efforts to somehow get through its cash-flow nightmare caused by the 737 MAX fiasco – is that the company blew, wasted, and incinerated $43.4 billion to buy back its own shares since June 2013, having become a master of financial engineering instead of aircraft engineering.


  • "The second thing to know about Boeing’s mad scramble to borrow another $10 billion is that it already has a huge amount of debt and other liabilities, and that its total liabilities ($136 billion) exceed its total assets ($132 billion) by about $4 billion as of September 2019, meaning that it has negative net equity, that the share buybacks have destroyed its equity, which is what share buybacks do to the balance sheet.

It also means that every dime in “cash” and “cash equivalent” listed on the balance sheet is borrowed." https://www.moonofalabama.org/2020/01/can-boeing-survive-its-max-problems.html#more

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| 1481 views | | 3 replies (last January 31, 2020) | Reply
Post ID: @OP+1398XxTh

3 replies (most recent on top)

@OP+1398XxTh
This is Criminal Boeing's Board is Criminal
Jail Them All

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Post ID: @8bzk+1398XxTh

To the commenter below I mildly disagree, Boeing does not deserve survival.
It would be best if Warren Buffet bought BCA and replaced the
Boeing Board of Miscreants with competent human beings
The Filth Must Go

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Post ID: @6qgd+1398XxTh

No, Boeing will not survive. This is a civilization-level tragedy, financialization, and rot of the elites.

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Post ID: @6xsa+1398XxTh

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