Desperate times need desperate measures? Boeing sells $13M yacht

boeing_logo_on_one_of_its_corporate_buildings-1.jpg

A luxurious yacht, sat on the shores of Lake Union in Seattle, Washington, United States has new owners. The now-former Boeing yacht, called Daedalus was reportedly sold for $13 million. The sale comes days after the company revealed its billions-reaching losses.

The yacht was delivered to Boeing in 1999, according to Delta Marine’s specification of the yacht. The luxury boat, measuring 41.2 meters (135 feet) in waterline length (LWL), was sold to a California-based developer for $13 million, according to reports by Puget Sound Business Journal.

According to sources familiar with the matter, as per the report, the sale was done quickly. The yacht was used to host airline and lessor executives in order to strengthen relationships and to pitch sales of Boeing aircraft to potential customers.

The sale would come at a time when Boeing is looking to tighten its belt. The company reported its Q3 2020 financial results on October 28, 2020, revealing a net loss of $3.4 billion. Its cash flow was at negative $4.8 billion while the overall Boeing liquidity reserves stood at $27.1 billion. In the previous quarter, they stood at $32.4 billion.

The current downturn in travel, which affected every link in the aerospace chain, was piled on top of the 737 MAX crisis for the aircraft manufacturer. In Q3 2020, Boeing recognized a charge of additional expenses of $239 million due to the groundings to cover “storage, pilot training and software updates,” according to the company’s financial report. Boeing already paid $1.6 billion of concessions to its customers, with an additional $5.9 billion remaining as of September 30, 2020. As of January 1, 2020, the beginning balance of concessions stood at $7.3 billion.

In a separate move to bolster liquidity, Boeing looked to sell off its various real estate items, including Commercial Airplanes Headquarters in Renton, Washington, reported the Seattle Times.

“Boeing has been deeply impacted by this pandemic,” the publication quoted an unnamed executive of the company. The manufacturer wants to position itself to be “sharper, leaner, more competitive long-term.”

 

Exit mobile version