Boeing is set to lay off staff and cut its dividend in the wake of a collapse in aircraft orders, The Wall Street Journal has reported.
The revelation comes as an industry bailout has yet to materialise in the US, despite President Donald Trump dropping yet more hints.
He said on Thursday, “We will be helping the airline industry. We will be helping the cruise ship industry. We probably will be helping the hotel industry.”
The ongoing COVID-19 crisis has caused airlines to ground thousands of aircraft with few orders for new ones.
A Boeing spokesperson continued to push for government help, saying on Thursday, “We have strong long-term viability, and we need this short-term assistance to get there. We would be good stewards of any assistance provided.”
Already, European rival Airbus has announced it is pausing production for the week, amid increasing speculation of its future.
Last week, World of Aviation reported that Boeing is freezing new hiring and preparing to draw down the full $13.8 billion loan it took out last month.
Meanwhile, Bloomberg has also reported that Boeing is set to draw down the entire $13.8 billion loan as early as Friday.
Earlier this week, the Centre for Aviation (CAPA) made worldwide headlines with its apocalyptic predictions for the industry.
The organisation said, “Co-ordinated government and industry action is needed – now – if catastrophe is to be avoided.
“As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants.
“While governments are grappling with the health challenges of coronavirus, it is clear that there is little instinct to act co-operatively. Messages are mixed and frequently quite different.”
