Saturday, March 21, 2020

Nikki Haley exits Boeing board, saying she opposes US bailout

GETTY IMAGES NORTH AMERICA/AFP/File / John Lamparski
Nikki Haley resigned from Boeing's board of directors, saying she was philosophically opposed to company efforts to garner a government bailout

Former UN ambassador Nikki Haley resigned from Boeing's board of directors, saying she was philosophically opposed to efforts to win a government bailout, the firm said Thursday.

Haley, a former governor of South Carolina, said she had hoped "to be part of helping" Boeing as it contends with the coronavirus crisis on top of the travails with the 737 MAX.

But Boeing's leaders and board "are going in a direction I cannot support," Haley said in a resignation later included in a Boeing securities filing.

"While I know cash is tight, that is equally true for numerous other industries and for millions of small businesses," she said, adding that she has "long held strong convictions" against government support.

Boeing is seeking at least $60 billion in federal support for the aerospace industry as the grounding of much of the global airline fleet due to coronavirus obliterates nearly term demand for commercial planes.

"I cannot support a move to lean on the federal government for a stimulus or bailout that prioritizes our company over others and relies on taxpayers to guarantee our financial position," she said in her letter, adding that she would remain a "strong supporter of Boeing and its workforce."

Haley, who is seen as a potential Republican party candidate for national office, was named to the board in February 2019, shortly before the MAX was grounded following two deadly plane crashes.

She praised Boeing leadership and expressed confidence in the 737 MAX, which remains grounded following two deadly crashes and still must clear some important regulatory hoops before it will fly again.

A Boeing spokesman said, "We appreciate her service on the board and wish her well."



Nikki Haley quits Boeing board over push for $60B in coronavirus aid


Nikki Haley joined the Boeing board in April 2019 after serving as President Donald Trump's top ambassador to the United Nations. File Photo by Manuel Elias/U.N./UPI | License Photo

March 20 (UPI) -- Former U.S. Ambassador to the United Nations Nikki Haley has resigned from Boeing's board of directors after less than a year, apparently because the aerospace giant is asking for $60 billion in federal aid amid the coronavirus outbreak.

The U.S. airline industry has seen passenger demand plummet in recent weeks as the coronavirus disease has expanded worldwide and nations have temporarily closed their borders. Boeing, also a top defense contractor, said it needs the federal aid to stabilize its operations and those of companies in its supply chain.

In a filing Thursday with the Securities and Exchange Commission, Boeing said Haley resigned Monday. She joined the board last April.

"As a matter of philosophical principle, she does not believe that the company should seek support from the federal government, and therefore decided to resign from the board," Boeing told the SEC.

Haley said in her resignation letter she understands Boeing still faces challenges related to the grounding of its 737 Max, but cannot support its decision to ask for public money.

"While I know cash is tight, that is equally true for numerous other industries and for millions of small businesses," Haley wrote. "I cannot support a move to lean on the federal government for a stimulus or bailout that prioritizes our company over others and relies on taxpayers to guarantee our financial position.

"I have long held strong convictions that this is not the role of government."

Haley served as President Donald Trump's chief ambassador to the United Nations for the first two years of his administration. Before that, she was governor of South Carolina for six years.

Boeing warned last month that short-term aircraft deliveries could be affected by the coronavirus outbreak, particularly due to an expected decline in demand in Asia.


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