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Haley Quits Boeing's Board Amid Bailout Request

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Haley Quits Boeing's Board Amid Bailout Request

Expressing her disagreement with Boeing's (NYSE: BA) government bailout, Nikki Haley resigned from the company's board of directors.

What Happened

Former governor of South Carolina and former ambassador to the United Nations left Boeing's board of directors after the company sought a $60 billion aid for the aerospace industry from the federal government, MarketWatch reported.

"While I know cash is tight, that is equally true for numerous other industries and for millions of small businesses," Haley wrote in a resignation letter dated Monday that was included with the Securities and Exchange Commission filing.

"We appreciate her service on the board and wish her well," Boeing responded in a statement on Thursday.

Why It happened

With collapsing travel demand haunting the industry and airlines deferring orders of new jets, Boeing has been under constant pressure. Last week, the company drew out its $13.8 billion in a private loan, referring to the worsening market conditions amidst the coronavirus pandemic, the Washington Post reported.

Grounding of the 737 Max aircraft since last year has also raised worries for the aircraft manufacturing company. Two fatal crashes in five months cost Boeing almost $19 billion while it still strives for approval for the plane to return to service. 

 

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