Boeing is set to borrow close to $10 billion from banks, a move that seeks to get it back on its feet after suffering massive losses linked to the worlwide grounding of its 737 Max craft.
Boeing’s problems began in 2019, after two of its 737 Max planes crashed, killing everone on board. This was followed by a worldwide grounding of the craft, with no airline yet to lift the ban. Additionally, in December last year, the airline announced it will cease production of the crafts with effect from January 2020.
At the end of last year, the plane maker lost its top spot in plane deliveries to rivals Airbus, managing only 345 deliveries against Airbus’ 863.
Read Also: Airbus Claims Top Spot in Plane Deliveries for 2019
According to Reuters, analysts estimate that Boeing has been losing around $1 billion a month because of the grounding, with estimated costs of the 737 MAX grounding at more than $9 billion to date.
According to the airline, they had about $25 billion in total debt at the end of the last quarter, up from around $19 billion at the start of the three-month period.
CNBC reports that the airline has already received $6 billion, with some of the lenders who have committed to contribute to the loan coprising of Citigroup, Bank of America Merrill Lynch, Wells Fargo and J.P. Morgan.
See Also:
