https://www.thestreet.com/investing/boeing-ba-stock-credit-agreement-032321
12 replies (most recent on top)
Similar to the US government debt , BA would not be able pay back the whole debt but just pay the interest and some principles. Unless BA have successful product like Tesla, Google, Facebook,...it's only their wish to make money to pay the bills, service the debt interest and have little profit left for reinvestment given its bad reputation in many of the programs they are experiencing now . If they would launch the new airplanes program in 3-4 years to compete with Airbus, they would have to issue bonds and get loans and the debt would be higher than 64 billion
787 Outsourcing was not a success. The real margins are on spare parts and if Boeing outsources, they don't get the after market sales.
I’m not sure how setup China is for manufacturing aircraft parts. If you want any semblance of quality in Chinese manufacturing you have to have multiple people pacing the floor and watching everything like a hawk. A friend went over there to work and his only job was to adjust the welding gas they would turn down the moment he walked away. Mexico is where It’s going.
The 787 was a such a phenomenal success story on outsourcing, I assume they’ll do it again.
Use the Nike business model where you design and engineer the product here. Then you outsource the manufacturing of the product to 3rd world countries. You then sell the product at full price and reap the profits. It’s corporate greed at its finest and Boeing’s only way out of debt.
They need to spin off Global Services, they are pretty much useless
The board claimed in early 2000s I could not afford to launch the 787 program and had to outsource the majority of the airplane to partners who helped finance it in addition to selling off Wichita to spirit Aerosystems.
What they obviously failed to mention that instead of paying stock dividends and bonuses to the Board of Directors that should’ve been saving cash to finance a 787.
They’ve obviously made the same mistake with the 777x. The company’s been run into the ground by the management. The mountain of debt they can never launch a new program. The safety reputation which is what sold airplanes has been ruined.
With this mountain of debt there’s no way they can afford a new program.
They need to spin off BDS and try to sell it to another company.
Lockheed and Grumman Would have no interest. the other small players in the defense industry don’t have that kind of cash.
They spun off Boeing Wichita, They don’t have any other business they could spin off except for the defense segment. They are in serious trouble.
WWBBD what would Bill Boeing do?
Definitely not by giving Board members multimillion dollar bonuses. Salary employees are way overpaid at Boeing.
They will never be able to pay it off. So far they have been doing balance transfers to manage their debt, but that game won't work forever. Beyond that Airbus has already surpassed boeing imagine what will happen when comac does. Boeing's future does not look good
No paid OT
No bonuses
No raises
No hiring
No employer paid insurance
No college tuition incentive
No defined benefit retirement
No more free employee parking
only options is to sell shares and sell off parts of the business units or split up units