Former U.S. Ambassador to the UN and South Carolina governor Nikki Haley has resigned from Boeing’s board of directors over disagreement on the company’s response to the ongoing heath crisis.
The Associated Press reported that Haley, in a letter addressed to Boeing CEO David Calhoun and chairman Larry Kellner, said that she is in contention with the Chicago-based company’s push for a $60 billion federal bailout to help it weather the coronavirus pandemic.
“As we encounter the Covid-19 crisis, Boeing, along with many other companies, face another major set of challenges,” Haley wrote in the letter, according to the AP report. “I want to be part of helping the company as it pushes through it. However, the board and executive team are going in a direction I cannot support.”
She added that “While noting that “cash is tight” at Boeing, she added, “that is equally true for numerous other industries and for millions of small businesses.” According to fliughtglobal.com, “Haley did not criticize Boeing’s handling of the 737 Max crisis in her resignation letter, but praised Boeing, saying the company handled the crisis with humility and transparency.”
Earlier, The Post and Courier reported that Boeing, which is “already straining financially from its grounded 737 Max jetliner,” is “suspending hiring, limiting overtime and reining in travel in an effort to conserve cash as a dangerous strain of the coronavirus continues to ripple through the airline industry.” Boeing has been struggling to win approval from regulators for its 737 MAX to return to service after two fatal crashes in five months.
The company was already facing a challenging year before COVID-19′s spread disrupted global markets, caused stocks to plummet and prompted travelers to cancel flights and airlines to slash capacity. President Trump had recently announced that the government would provide financial assistance to Boeing as the entire aviation sector faces economic turmoil over the pandemic.
The company’s site in Charleston, South Carolina, currently serves as one of two final assembly and delivery points for the Boeing 787 Dreamliner.