Boeing’s Forthcoming Divestiture – Jeppesen?

Boeing had a terrible 2024

and needs to raise cash to pay down debt.  The company reported losses of $11.8 billion last year and was forced to raise $21 billion in October. While the company had only $10.5 billion in cash at the end of September, it ended the year with $26.3 billion after the debt and equity raise.  

However, with a high debt load of $58 billion, up $10 billion from last year, the company is looking at non-core assets to raise cash. According to news reports, Jeppesen, the company’s navigation unit, has attracted substantial interest from industry players and private equity firms. 

Jeppesen is perhaps best known for its airport instrument approach charts, which, since 1934, evolved as the industry standard.  The company is the undisputed leader in the pilot information market, from old-style chart books to iPad-based electronic flight bags.  While this is tangentially related to aircraft, as Jeppesen flight plans are used throughout the industry, they are not core to manufacturing aircraft.  Given its leadership position, it is drawing substantial interest.