Boeing Co. (BA) is reportedly exploring the sale of its navigation subsidiary, Jeppesen, in a strategic move to reduce its substantial $58 billion debt. Acquired by Boeing in 2000, Jeppesen provides essential flight navigation services to airlines worldwide. As part of its ongoing efforts to strengthen its financial position, Boeing may divest this unit, potentially raising over $6 billion in the process.
According to Bloomberg, Boeing is working with advisors to facilitate the sale, which has already attracted interest from several private equity firms. This decision aligns with CEO Kelly Ortberg’s broader strategy to refocus on Boeing’s core business, primarily the commercial aircraft sector. Ortberg previously stated that the company’s asset review aims to assess whether certain non-core businesses, such as Jeppesen, are aligned with its long-term goals or could be better served elsewhere.
In addition to considering the Jeppesen sale, Boeing is taking significant steps to address its financial challenges. The company has reaffirmed its commitment to compensating employees affected by the recent seven-week strike in Seattle, with Ortberg promising to make up for lost wages. However, the company also plans additional cost-saving measures, including job cuts, hiring freezes, and corporate travel reductions to help alleviate its cash flow pressures.
Boeing’s stock (BA) rose 0.48% to $151.70, reflecting some optimism amid these strategic changes. If the sale of Jeppesen proceeds, the windfall could provide Boeing with a vital financial cushion, enabling the aerospace giant to focus on its core operations and accelerate its recovery.
