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There are reasons why US prefers to bail Boeing. US is always concerned about espionage and dependencies on other countries with respect to national interest. A

There are reasons why US prefers to bail Boeing. US is always concerned about espionage and dependencies on other countries with respect to national interest. An example would be the whole Huawei+5G debacle. What if Boeing goes bankrupt and the only reliable plane makers are PRC companies (usually state-backed, even if it's not explicit)?

whatshisface 7y ago
If Boeing goes bankrupt all of the assets are still there and all of the employees still remember how to do their jobs. A company collapsing is a pure-paper action that means "fire everyone in charge." In some cases, depending on how the corporate governance is set up and on who holds the equity, it's the only way they can be fired. If the US wants to help out US manufactures for strategic regions, it can apply the usual "made in USA" government purchasing rules, or maybe a tariff.
- naasking 7y ago
  The problem is, while all this paper shuffling is taking place, state-backed players like Huawei can dominate a market in the interim. Not a good outcome to say the least. I agree that some structural change is needed, but it doesn't have a trivial solution.
nxc18 7y ago
Boeing needs to be broken up. Parts critical to national security can be federalized. The rest can be restructured to restore competition to the market and eliminate the 'single point of failure'. Boeing's efforts to consolidate the entire US aerospace industry into one company have hurt our society. https://en.wikipedia.org/wiki/Category:Boeing_mergers_and_acquisitions https://en.wikipedia.org/wiki/Category:Boeing_mergers_and_ac...
- catalogia 7y ago
  > Boeing needs to be broken up. Parts critical to national security can be federalized. Where that division line might be isn't clear to me. For instance the 737 is both a civilian airliner and a military maritime patrol aircraft (as the P-8: https://en.wikipedia.org/wiki/Boeing_P-8_Poseidon https://en.wikipedia.org/wiki/Boeing_P-8_Poseidon)
- ramblenode 7y ago
  And they are still considering a 4.2 billion acquisition even as they ask for federal loans. https://www.nytimes.com/reuters/2020/03/18/business/18reuters-health-coronavirus-embraer-boeing-analysis.html https://www.nytimes.com/reuters/2020/03/18/business/18reuter...

whatshisface 7y ago

If Boeing goes bankrupt all of the assets are still there and all of the employees still remember how to do their jobs. A company collapsing is a pure-paper action that means "fire everyone in charge." In some cases, depending on how the corporate governance is set up and on who holds the equity, it's the only way they can be fired. If the US wants to help out US manufactures for strategic regions, it can apply the usual "made in USA" government purchasing rules, or maybe a tariff.

naasking 7y ago
The problem is, while all this paper shuffling is taking place, state-backed players like Huawei can dominate a market in the interim. Not a good outcome to say the least. I agree that some structural change is needed, but it doesn't have a trivial solution.

nxc18 7y ago

Boeing needs to be broken up. Parts critical to national security can be federalized. The rest can be restructured to restore competition to the market and eliminate the 'single point of failure'. Boeing's efforts to consolidate the entire US aerospace industry into one company have hurt our society. https://en.wikipedia.org/wiki/Category:Boeing_mergers_and_acquisitions https://en.wikipedia.org/wiki/Category:Boeing_mergers_and_ac...

catalogia 7y ago
> Boeing needs to be broken up. Parts critical to national security can be federalized. Where that division line might be isn't clear to me. For instance the 737 is both a civilian airliner and a military maritime patrol aircraft (as the P-8: https://en.wikipedia.org/wiki/Boeing_P-8_Poseidon https://en.wikipedia.org/wiki/Boeing_P-8_Poseidon)
ramblenode 7y ago
And they are still considering a 4.2 billion acquisition even as they ask for federal loans. https://www.nytimes.com/reuters/2020/03/18/business/18reuters-health-coronavirus-embraer-boeing-analysis.html https://www.nytimes.com/reuters/2020/03/18/business/18reuter...