Boeing is in deep trouble as the Coronavirus continues to spiral out of control, grounding more than 80% of Aircraft in airline industry.
Many airlines are expected to go bankrupt unless respective Governments bail them out.
Airlines are deferring delivering and halt orders for new airplanes as the demand for air travel has come to a stand still.
Boeing had been going through a bad time since the global grounding of 737MAX, and delays in 777x production.
With the new wave of virus hitting the aviation Industry, Boeing share holders opted to sell.
Within the last 5 days, Boeing shares dropped more than 40% to $124 from its peak of $440 in March 2019.
Boeing is America’s largest manufacturer that employs more than 100,000 people domestically and supports more than 2.5 million jobs through its supply chain.
However, Trump signalled on Tuesday that he would bailout the company and said “Yes, I think we have to protect Boeing. We have to absolutely help Boeing,” he said. “Obviously when the airlines aren’t doing well then Boeing is not going to be doing well. So we’ll be helping Boeing.”
Boeing confirmed that it is seeking $60 billion in federal help, which includes about $50 billion in help for passenger airlines, along with $8 billion for cargo airlines and $10 billion for the nation’s airports.
Boeing executives said to White house and Congress, that if Boeing does not receive government assistance, it could decline rapidly, causing significant damage to the American economy.
The Boeing share price has been under pressure even before the virus hit the market.