Finance

Boeing hones $15 bln finance plan to weather crises: sources


STORY: Battered by a strike and other problems, Boeing is closing in on a plan to bolster its finances.

Reuters sources say the aerospace giant will raise around $15 billion through shares and bonds.

In a regulatory filing earlier, the company had said the total amount raised could hit $25 billion.

Boeing is battling a strike by thousands of workers who are demanding higher pay.

That has hit output of some of its best-selling jets, including the 737 MAX.

The company is also dealing with the fallout from a midair blowout on one of those planes earlier in the year.

That left it facing increased regulatory scrutiny, production curbs, and a loss of confidence among customers.

Now analysts estimate the strike could cost Boeing around $1 billion per month.

To reduce costs, the plane maker has announced 17,000 job cuts.

Its shares are down some 40% this year amid all the troubles.

The strike will also mean delays in the delivery of new jets, and some very unhappy customers.

First deliveries of a key new model – the 777X – have been put back by a year.

Emirates boss Tim Clark said this week that he wanted a “serious conversation” with Boeing about the setback.

Meanwhile, top European budget airline Ryanair says it will have to cut forecasts for next year due to getting fewer new jets than it expected.



Source link

Leave a Reply