Right Vs. Left News

Monday, 20 January 2020 15:59

Boeing seeks to borrow $10 billion or more amid 737 MAX crisis: source

Written by Reuters
Rate this item
(0 votes)

WASHINGTON (Reuters) - Boeing Co (BA.N) is in talks with banks about borrowing $10 billion or more amid rising costs for the U.S. planemaker after two crashes involving its 737 MAX jetliner, a source told Reuters on Monday.

CNBC first reported the news on Monday, citing sources that Boeing has so far secured at least $6 billion from banks and is talking to other lenders for more contributions.

A source confirmed the talks to Reuters, but it was still not clear how much Boeing would seek to raise and whether it would pursue the selling of new bonds. One key issue for Boeing is flexibility since it is not clear how long the 737 MAX will remain grounded.

Boeing declined to comment.

Reuters reported on Friday that the Federal Aviation Administration is now unlikely to approve the plane’s return until March, but that could take until April or longer.

Boeing confirmed on Monday that it temporary halted production of the 737 MAX in Washington State in recent days. The company had said in December it would halt production at some point this month.

“MAX production has now been temporarily suspended inside the 737 factory. The Renton site remains open as our teams focus their work on several quality initiatives,” Boeing said, referring to its facility in Renton, Washington.

Read more at Reuters
Read 11 times


Please publish modules in offcanvas position.