The Airbus arch-rival Boeing is up to his neck in the corona crisis. But investors continue to give credit to the struggling US corporation, as a mega-bond placement now shows. State aid for survival is therefore not necessary - at least for the time being.
Chicago (AP) - The battered aircraft manufacturer Boeing has managed to free itself from the capital market in order to remain liquid in the Corona crisis.
The US aviation giant announced that it had raised $ 25 billion from investors by issuing bonds. It is currently not planned to seek additional funding - including government aid. The debt instruments have terms of between 3 and 40 years, and the Group kept a low interest rate.
According to the US media, however, the demand for the paper was very high, so that the financing costs were much lower than initially assumed. The Airbus rival is deeply in crisis - the debacle surrounding the 737 Max, the unfortunate aircraft that was banned after two crashes, made the situation precarious when the corona pandemic almost brought air traffic to a standstill. Like the US airlines, the group was considered a candidate for state aid, but had already emphasized that it had alternatives on the capital market.
The Corona pandemic and the debacle surrounding the 737 Max misfortune pilot brought Boeing deep into the red in the first quarter. The bottom line was a loss of $ 641 million. Revenue decreased 26 percent to $ 16.9 billion. Boeing plans to cut around ten percent of its jobs in the crisis. The commercial aircraft division is particularly hard hit with the 737 Max. The group recently had around 160,000 employees.
The corona crisis is putting financial pressure on many airlines, which Boeing will be affected by cancellations. In the first quarter, 314 orders for the 737 Max were lost. Due to the pandemic, aircraft production, which was already severely restricted due to the start bans for the crisis jet, had to be stopped temporarily. Boeing is reopening its factories, but will permanently cut production on several models due to the corona demand shock.
As the corona pandemic also paralyzes the US authorities, Boeing's much-hoped-for approval of the 737 Max by mid-year could be delayed even further. The longer the best-selling model until the crashes can't take off, the more difficult it will be for Boeing. This also puts a heavy burden on the share - the price has plummeted by 56 percent since the beginning of the year. The successful mega-bond placement was initially well received by investors - the share reacted on Friday to market gains.