Cash strapped Boeing is trying to sell off its defense segment to either Lockheed or Grumman or break it apart. Problem is no one’s got that kind of cash.
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Lockheed and Grumman don't want anything to do with the crxp Boeing produces...like the KC-46 tanker which is being renamed the POS-46
Boeing is a minor player in the defense industry. Lockheed and Grumman have gotten the bulk of the major contracts.
I’m sure they like to spinoff the defense segment to a separate company like Onex deal for spirit Aerosystems but I don’t think that’s possible to an outside investor due to the defense contracts.
Moving the Renton production to Everett and selling off the property for condos
Is also a real possibility.
Boeing made it clear when they sold Boring Wichita, That this is not a move they would not consider
Boeing sold the Wichita division to fund the 787 program which became Spirit Aerosystems. They are in much worse financial straits now.
March 23, 2020 7:38 am
https://247wallst.com/aerospace-defense/2020/03/23/as-boeing-faces-disaster-spin-out-of-defense-unit-becomes-essential/
As Boeing Faces Disaster, Spin Out of Defense Unit Becomes Essential
Author – Douglas A. McIntyre
https://247wallst.com/author/douglas-mcintyre/
(Douglas A. McIntyre) A self proclaimed expert and self promoter
- Ridiculous Preposterous Outlandish Nonsensical
That said, it would be an extremely short sighted business decision.
Akin to selling off the Renton properties or selling off the Wichita division
OR knowingly selling fatally flawed aircraft to gain market-share while lining
the pockets of the BoD, and then lying about when they get caught.
That would be as despicable as fighting to keep the Max in service after
The loss of 189 passengers and crew, on Lion Air Flight 610
Knowing full well the Max is a fatally flawed aircraft and it will Қill again.
It would also be absurd to withhold material facts related to the Risk’s of
The 787’s Fatal Flaws from investors and bankers. As such a crime would
Be investigated by the SEC and the FBI… As (Stock Manipulation) —
We have known about the Dreamliner’s Fatal Flaws for about a year now.
But no one could say anything about the 787 until the Max was back on track
This was an effort to keep the stock flying high and attain a good credit line
No Matter The Cost to others ..............................................................................
Boeing confirms SEC investigating disclosures around 737.
✈️✈️✈️✈️✈️✈️✈️⚰️⚰️⚰️⚰️⚰️⚰️⚰️⚰️ ✈️✈️✈️✈️✈️✈️✈️
Let’s be very clear, Boeing is considered a national security company, therefore, it will never go out of business nor be allowed to fail for bankruptcy. The Fed will bailout when is necessary. You can be assured of that.
Boeing will downsize to safe cash until the market recovers. In the immediate future (10 years) there is only two major players in commercial business.
https://www.google.com/amp/s/247wallst.com/aerospace-defense/2020/03/23/as-boeing-faces-disaster-spin-out-of-defense-unit-becomes-essential/amp/
The 90 day shutdown rumor made more sense that this nonsense.
b—s—