Among the measures taken, there is also a guarantee for a loan from Citi to Boeing. Under US Exim’s supply chain finance programme, the government agency granted a 90% guarantee for a USD 500 million facility, allowing Citi to finance payments due from Boeing to its US-based suppliers for 12 months. The move will support an estimated 1,900 jobs across the country, according to US Exim.
Travel was upended as lockdowns were imposed around the world at the start of 2020 in a bid to control the spread of the pandemic. At its worst in April 2020, global commercial flights were down more than 70% compared to the same month in 2019, according to aviation tracking site FlightRadar. The plummet in demand has left airlines and subsequently plane makers cash strapped and in need of financial support.
At the end of October 2020, Boeing announced it will cut thousands more jobs because of mounting losses. The company said that it will have a workforce of 130,000 by the end of 2021, 20% down on the 160,000 people in its employment before the pandemic.
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