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Boeing has faced a lot of setbacks since the Lion Air tragedy set off a string of bad 737 Max headlines and ultimately grounded the plane. Since then, Boeing was forced to drawdown its entire line of credit, announce a 10% workforce reduction, see its share price plummet over 60%, and brace for an abysmal self-reported travel forecast.
But here’s the thing…Boeing is basically too big to fail.
The FED de facto bailed out Boeing after it announced its junk bond etf purchase program, and isn’t going anywhere anytime soon. In fact, they balked at the US government wanting a bailout deal akin to what private money would demand when they couldn’t secure debt financing ( don’t worry the mere mention of Junk ETF buyouts provided enough cover for them to get a new fresh round of issuance because, we the taxpayer, will ultimately own that debt once the bank sells it off. So what do you think happened? Banks lined up to finance them once they knew they wouldn’t face counterparty risk by holding the bad debt if Boeing collapsed – we would).
Dave Calhoun, CEO of Boeing, has penned a just released statement which outlines the first wave of layoffs.
We’re notifying the first 6,770 of our U.S. team members this week that they will be affected. We will provide all the support we can to those of you impacted by the ILOs — including severance pay, COBRA health care coverage for U.S. employees and career transition services.
Strategically you can see the company is bracing for a “few years” of severe demand drop in commercial jets. This isn’t a new statement, and when Boeing first indicated the industry could take a few years to recover, JETS ( the global airline ETF ) plummeted on the news. Needless to say, airlines weren’t especially happy about it.
The COVID-19 pandemic’s devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years,
Boeing is pushing ahead with the 737 MAX. Let’s see if they can actually get their act together. It’s one thing that the plane has crashed twice, and I can’t imagine the sorrow felt by the families of those affected, but the worst part has been the cover up and scandal surrounding the project. Even as Boeing was attempting to regain brand image…debris was found in the the fuel tanks of 737 MAX planes.
We’re moving forward with our plan to restart 737 MAX production in Renton, Washington, as our return-to-service efforts continue. And our Global Services team is changing its organization to ensure it is lean and focused on the post-COVID needs of its customers.
Now here’s the thing…if Boeing is laying off 10% of its workforce what do we think is going to happen to airlines. Much of the money that has been given to airlines has been contingent on keeping staff on the payroll, but as Larry Summers controversially stated… the airlines need to shrink to be viable. And it’s true, but it isn’t as politically viable as kicking the can down the road so we the taxpayer hopped right in and gave it a good ole Beckham free kick.
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
Chase Sapphire Preferred® Card
Welcome Offer
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
Annual Fee
$95
Points Earned
Transferrable Chase Ultimate Rewards
- 5x on all travel purchased through Chase Travel℠
- 3x on dining, including eligible delivery services for takeout & dining out
- 3x on select streaming services
- 3x on online grocery purchases
- (excluding Target, Walmart and wholesale clubs)
- $50 Annual Chase Travel Hotel Credit via Chase Travel℠
- The begins immediately for new cardmembers and after your account anniversary for existing cardmembers
- 2x on all other travel
- 10% Anniversary Bonus
- Every year you keep the card, your total spend will yield a 10% points bonus. If you spend $10k in a year, you’ll get 1k bonus points
- Chase Sapphire Preferred continues to redeem at 1.25c in the Chase Travel℠ and the slew of other benefits remain in tact including Auto Rental Collision Damage Waiver ( primary ), purchase protections, etc.
- Points are transferrable to 14 Ultimate Rewards partners
- Redeem in Chase Travel℠ for 1.25 cents per point
- No foreign transaction fees
- Suite of Travel and Purchase Coverage
- Auto Rental Collision Damage Waiver is my favorite
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
- $95 Annual Fee
We keep an up to date spreadsheet that lists the best ever offers: You can find that spreadsheet here.
Historically 80k is a very, very good offer and hit in both 2022 and 2023. In 2021, we saw the offer hit an all time high of 100k. Who knows if that will ever come back.
Main Cast:
Cards that earn flexible points and should be used on the bulk of your purchases.
Supporting Cast:
Cards that earn fixed points in the currency of the airline/hotel and can not be transferred at attractive rates. These cards yield benefits that make it worth keeping, but not necessarily worth putting a lot of your everyday spend on.
The Chase Sapphire Preferred® is exceptional starter card and offers transferrable Ultimate Rewards, and pairs well with other Chase cards.
If you carry this card alongside Chase’s cashback cards like the Chase Freedom Flex® and Chase Freedom Unlimited® or the business versions: Ink Business Cash® , Ink Business Unlimited® you can combine the points into Preferred account and transfer into hotel and airline partners
Annual fee is quite low at $95 a year + you get a 10% anniversary bonus on points + $50 hotel credit in Chase travel.
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