Having blown all their earnings, since the founding of the company, and Billions more, buying back stock, some people seem to have started questioning the viability of the company. So, now they start selling pieces off.
Any bets the $5B “extraordinary” charge this quarter is covering a lot more fumbling, rather than the strike.
It is amazing to me that the executive suite has not be turned out. Fired!
Shameful. Disgraced. Incompetent. Worthless. Useless.
Typical self feeding MBAs.
Yes, strike has been costly. Keeping the lights on when they are not shipping new planes–ie no cash flow–is a challenge.
Will new contract be accepted? Can they be profitable under terms? And if not, then what? At minimum heavy cost cutting.
When they get to junk bond territory costs skyrocket. Selling new stock issue. Or subsidiaries for cash.
The end could be near. In bankruptcy, stockholders take the hit. You wonder who will buy the assets. Doubt that company would shut down. But more chaos for a while.
The PE playbook. Go Ch 11, stiff all the other stakeholders, then carry on with the honchos stuffing their pockets full. or go Ch 7, then management buys the company out of bankruptcy, after everyone else has taken a haircut, so they can run it into the ground again.
Steve