Boeing Co. is reportedly exploring the possibility of divesting its navigation unit, Jeppesen, which it purchased in 2000, as a strategic move to lessen its substantial $58 billion debt load. The company is said to be collaborating with an adviser to oversee the sale process, which could potentially bring in more than $6 billion, according to a report by Bloomberg. The navigation unit, known for providing essential tools to airlines for navigation purposes, has already piqued the interest of several private equity firms, indicating a possible lucrative deal on the horizon.
CEO Kelly Ortberg's decision to consider the sale of Jeppesen comes as part of a broader initiative to evaluate Boeing's assets and identify units that may no longer align with the organization's primary focus on core commercial aircraft production. Ortberg mentioned during an earnings call the importance of assessing whether a business or product is in line with the company's long-term strategy or if it would be more beneficial situated elsewhere. Additionally, Ortberg assured employees furloughed during the seven-week strike in Seattle that Boeing intends to compensate them for their lost income in recognition of their support, as per a report from BNN Bloomberg.
Despite the affirmative gesture towards furloughed staff, Boeing is still planning further job cuts as part of its ongoing efforts to minimize costs and address its financial challenges. The company has already implemented measures such as hiring freezes and reductions in corporate travel to manage its cash flow constraints amid its financial struggles. Currently, Boeing's stock price was noted to have increased by 0.48% to $151.70 as per the latest data available from Benzinga Pro at the time of reporting.