Will the US government nationalize Boeing?

About 12 years after the US government bailed out General Motors and Chrysler, Washington policymakers are debating how to throw Boeing a lifeline as it reels from dual crises over the coronavirus and 737 MAX.

The aerospace giant, which manufactures the US presidential jet Air Force One in addition to defense and commercial aircraft, has asked for USD 60 billion in federal support for the US aerospace industry, but it is not yet clear how such a bailout would function.

"Boeing is on the brink," prominent hedge fund investor Bill Ackman said this week. "Boeing will not survive without a government bailout." Boeing's financial picture was already under pressure even before the coronavirus.

The 737 MAX, which had been the company's top-selling plane, has been out of service for more than a year following two deadly crashes. The lengthy grounding has cost the company upwards of USD 18 billion, a figure that is expected to rise.

The coronavirus has now worsened that picture considerably, obliterating demand for flying and putting Boeing's airline customers in financial distress. The situation has pummeled shares of Boeing, leaving its market capitalization Friday at around USD 54 billion.

Also Friday Boeing announced that it was suspending its dividend until further notice and that Chief Executive Dave Calhoun and Chairman Larry Kellner would forgo pay until the end of the year.

The company, which had previously announced it was suspending share buybacks, said the program would remain paused indefinitely.

Boeing's dual crises would threaten the survival of other companies, but it still retains considerable support in Washington because of its importance to the US economy, with about 130,000 employees. And that figure does not include a much larger group workers employed by Boeing's 17,000 suppliers.

President Donald Trump on Tuesday endorsed aggressive measures to assist the companies, telling reporters at a briefing, "we have to protect Boeing and help Boeing."