Boeing announces intention to raise up to $25 bn

Boeing has recently announced a series of belt-tightening measures and production delays. Photo: Jason Redmond / AFP/File
Source: AFP

US aircraft manufacturer Boeing on Tuesday unveiled measures meant to replenish its cash flow, including its intention to raise up to $25 billion, as it navigates recurrent production problems and a major US strike.

The company said it could raise the money via securities such as shares or bonds, according to a regulatory document.

It also earlier announced that it was in an agreement to obtain $10 billion in credit from multiple banks.

The moves come amid a worker strike by the International Association of Machinists and Aerospace Workers, who walked off the job on September 13 after overwhelmingly rejecting a contract offer.

The direct financial impact of the first month of the strike cost Boeing more than $3 billion, according to Anderson Economic Group.

Last week the company said it planned to cut 10 percent of its workforce as it projected a large third-quarter loss, in the wake of the strike by some 33,000 workers in the Seattle region.

The work stoppage has only added to the company's litany of problems.

Boeing sank into further turmoil in January when a window blew out mid-flight on an Alaska Airlines plane, necessitating an emergency landing on a 737 MAX, the aircraft involved in two fatal crashes in 2018 and 2019.

That led to the Federal Aviation Administration tightening oversight of Boeing's production processes, capping the company's output. Production on the MAX is now halted due to the IAM strike.

Source: AFP