Conventional wisdom holds that the longer a strike goes on, the more money a business will lose. For the Boeing Company, that could mean billions.
According to estimates by Anderson Economic Group via the financial publication The Street, Boeing has already lost more than $570 million in the one week since its 33,000 machinists went out on strike.
It
doesn’t take a mathematician to extrapolate how much that could add up.
No
work means no airplane production. No production means no deliveries. And no
deliveries means no income.
That’s
not good for a company that has long
been struggling financially. In fact, Boeing had to come up with $8 billion
earlier this year just to cover expenses, and because of the strike has
resorted to once-monthly furloughs for executives.
Borrowing
any money it needs could be an option for the company, but its credit rating
has plummeted. The good news right now is that Boeing, along with Airbus,
remains one of only two major airplane manufacturers in the world.
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