Page 1
Page 1
Started By
Message
locked post

Boeing Subsidies (Export-Import Bank) threatened by Cantor loss?

Posted on 6/13/14 at 11:00 am
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22230 posts
Posted on 6/13/14 at 11:00 am
Hmmmmm?

"Boeing, the biggest beneficiary of the U.S. Export-Import Bank, watched its stock drop by the biggest margin in months following House Majority Leader Eric Cantor’s primary election defeat Tuesday.

A federal agency that subsidizes American exports, the Export-Import Bank regularly subsidizes Boeing’s foreign sales. Just last month, Boeing announced the bank would underwrite $10 billion in new business for the aviation giant."


Eric Cantor’s Loss Reverberates at Boeing, Biggest Beneficiary of Export-Import Bank Subsidies

5 Day Stock Chart
Posted by Cosmo
glassman's guest house
Member since Oct 2003
120158 posts
Posted on 6/13/14 at 11:03 am to
quote:

regularly subsidizes Boeing’s foreign sales


What does this mean exactly?

Is that the only way Boeing can compete with Airbus?
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22230 posts
Posted on 6/13/14 at 11:16 am to
quote:

What does this mean exactly?
It means that Boeing can submit big fat over-priced, non-competitive bids to foreign airlines and Boeing gets $$$$ from the Export-Import Bank and applies it to the bid (lowers the bid courtesy our tax dollars but preserving BA's original profit margin), thereby making them competitive and making the sale. Voila...
Posted by Cosmo
glassman's guest house
Member since Oct 2003
120158 posts
Posted on 6/13/14 at 11:36 am to
I'm guessing the EU has a similar deal with Airbus though. Boeing probably couldn't compete otherwise.
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22230 posts
Posted on 6/13/14 at 11:46 am to
quote:

I'm guessing the EU has a similar deal with Airbus though.
From 2012.... By contrast, the WTO said in December that Airbus received $18 billion in subsidies from European governments.
Posted by Cosmo
glassman's guest house
Member since Oct 2003
120158 posts
Posted on 6/13/14 at 1:33 pm to
Well there you go. I hate corporate welfare just as much as individual welfare but the Euros cheated first and we have no choice or Boeing goes under.
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22230 posts
Posted on 6/13/14 at 3:07 pm to
quote:

we have no choice or Boeing goes under.
Not so fast, my friend. That's what Boeing may want us to believe. My questions are these:

• Are their operating processes as efficient as possible?
• Have they undertaken every cost cutting measure possible?
• Have they dealt with their unions in the best possible manner or do they just throw money at them?
• Is Boeing acting in good faith here or do they see a free meal on the government's tab.

That's what bugs me about this whole idea....
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram