How to Make a Boeing Bailout More Palatable

Boeing Co. is the least deserving of the corporate needy in the coronavirus crisis, but the nature of its position means it must get a special cut of a $2 trillion aid package working its way through Congress. As the only U.S. company capable of producing a major commercial jetliner, the country’s biggest exporter, and a major defense contractor, it’s the linchpin in a supply chain responsible for 2.5 million jobs. It’s not too big to fail; it’s too important to fail. Lawmakers are understandably balking but their consternation would be better directed at a conversation around what kind of conditions can make the concept of U.S taxpayer assistance palatable for a company whose 737 Max jets ferried 346 people to their deaths and whose history of risky decision-making is at least partly to blame for the current cash crunch.

The sticking point for Congress on much-needed fiscal stimulus to blunt the economic impact of coronavirus-related shutdowns across the country is how to distribute a $500 billion pot of corporate-leaning bailout money and what sort of strings should be attached. Of that, $50 billion in loans would reportedly go to the commercial-airline industry, while cargo carriers would get $8 billion. Another $17 billion would go to “businesses critical to maintaining national security.” The remaining $425 billion is for businesses, state and local governments, with little detail beyond that of who would be eligible for the funds and most of the decision-making left to Treasury Secretary Steven Mnuchin. That’s to the chagrin of Democrats, who have blocked the bill in an effort to put more parameters on how the money is used and ensure protections for workers. The two sides appeared to be approaching an agreement that would ensure more oversight over the money.