Boeing has not only taken a public relations hit from its involvement in the fatal crashes of its 737 MAX aircraft; it has also taken a financial hit.
Anticipating that the near-$10 billion ding its bottom line took will grow even larger when its fourth quarter 2019 financials are released, the aircraft manufacturer is reportedly talking to banks about borrowing enough to offset the sting of that loss. The company has already secured a little more than half of that $10 billion.
Where everything stands
Boeing halted production of the 737 MAX in December. If the company ever gets the all-clear from regulators that the plane is safe, it will have to find a way to unload hundreds of aircraft it has in storage.
Despite the existing orders Boeing has for those planes, most -- if not all -- airlines sense that there are few travelers who are willing to fly on one, no matter how safe and secure the company says the planes are.
“We have previously stated that we would continually evaluate our production plans should the MAX grounding continue longer than we expected,” Boeing wrote at the time of that decision.
“As we have throughout the 737 MAX grounding, we will keep our customers, employees, and supply chain top of mind as we continue to assess appropriate actions. This will include efforts to sustain the gains in production system and supply chain quality and health made over the last many months.”
In other words, hang tight, world. This story has a long way to go before it’s ever finished.