Boeing is planning to raise $15 billion through a combination of stock and debt offerings. This move comes as the company faces a costly strike, regulatory scrutiny, and production delays following the 737 MAX grounding. The offering is expected to take place after Boeing’s third-quarter earnings report, but some analysts believe it could be delayed until the strike is resolved.
Boeing’s stock is plummeting as the company faces a potential credit downgrade due to a prolonged strike by its machinists’ union, disrupting production and leading to significant financial strain. The strike, entering its fourth week, has already cost Boeing over $1 billion and could reach $10 billion in 2024. Adding to the pressure, a recent FAA warning about a potential rudder system malfunction in 737 planes raises further safety concerns. These challenges cast a shadow over Boeing’s recovery and its ability to meet its ambitious production targets.
The Boeing 737 Max is facing a new safety concern after investigators found a potential issue with the rudder pedals. Moisture can seep into the rudder assembly, causing the pedals to freeze and potentially jam. This issue has led to urgent recommendations for Boeing and the FAA to address the problem.
Boeing stock experienced a decline on Tuesday, driven by a six-month delay in a key production milestone for the 737 MAX. The company also announced its plans for a significant step towards developing a global quantum internet with the launch of its Q4S satellite in 2026. Despite these developments, Boeing delivered 40 commercial jets in August, exceeding last year’s figures.
Boeing has announced a six-month delay in reaching its production target for the 737 MAX, citing challenges in ramping up production. The new target is to reach a monthly output of 42 jets by March 2025, instead of the previous goal of September 2024. This delay comes amidst a series of challenges including a mid-air incident in January, a potential strike by union workers, and a tentative labor agreement that has left many workers dissatisfied.
Boeing’s stock remains relatively unchanged as analysts from Moody’s and S&P cast doubt on the company’s ability to reach its 737 MAX production target of 38 planes per month by 2024. While a credit downgrade to junk status is not anticipated, concerns about labor disruptions and a history of underperforming targets persist. The focus remains on Boeing’s ability to stabilize production and generate free cash flow, crucial for maintaining its current credit rating.
U.S. prosecutors are considering criminal charges against Boeing over its handling of the 737 MAX crashes, following a determination that the company violated a 2021 agreement. Prosecutors have met with Boeing lawyers and are scheduled to meet with victims’ families this weekend as a July 7 deadline looms for a decision.
The US Department of Justice is considering criminal charges against Boeing in connection with the deadly crashes of two of its 737 Max aircraft, citing alleged violations of a 2021 agreement that protected the company from prosecution. The crashes, which occurred in Indonesia in 2018 and Ethiopia in 2019, resulted in the deaths of 346 people. Boeing disputes the claims, asserting that it complied with the agreement’s terms. The company has until June 13 to respond to the allegations, and the DOJ’s decision on whether to pursue criminal charges will be based in part on its response.
The US Justice Department has announced that Boeing could face criminal prosecution for the two fatal 737 Max crashes that claimed the lives of 346 people five years ago. The prosecution alleges that Boeing breached an agreement that had shielded it from legal proceedings for the accidents. The company has denied wrongdoing and says it will defend itself against the charges.
The US Justice Department has announced that Boeing could be prosecuted for the two fatal crashes of its 737 MAX aircraft, which killed a total of 346 people five years ago. The department alleges that Boeing breached the terms of an earlier agreement that shielded the company from criminal charges, and could now face prosecution for violations of federal law related to the crashes.
