Boeing union strike only intensifies pressure: Analyst
Roughly 30,000 Boeing (BA) workers are on strike, with production coming to a halt. Ben Tsocanos, S&P Global Ratings aerospace director, joins Catalysts hosts Seana Smith and Madison Mills to take a look at the company’s position.
Tsocanos tells Yahoo Finance that he projects the strike, which kicked off on September 13, will cost Boeing around $1 billion a month, saying, “There’s no question it’s going to be a significant amount of money the longer the strike goes on.”
The analyst explains, “The company was under pressure before the strike. And the longer the strike goes on, the more pressure they’re under…The strike certainly pushes out recovery in the 737 Max production, probably into next year, and also delays free cash flow generation.”
He notes that “the company has a unique market position as one of the two major aircraft makers” alongside Airbus (AIR.PA). “They have to some extent some cushion” due to this position, Tsocanos says.
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This post was written by Naomi Buchanan.
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