By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Boeing Seeks $10 Billion Loan
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Boeing Seeks $10 Billion Loan

Boeing Seeks $10 Billion Loan

Travel Radar
Last updated: 26 January 2020 19:31
By Travel Radar Staff
2 Min Read
Share
Production of the MAX at Boeing © NYT
SHARE

As Boeing’s crisis with the 737 MAX continues to deepen, the company is reported to be in talks with banks to borrow at least $10 billion.

Following the fatal crashes in October 2018 and March 2019 killing 348 people, the Federal Aviation Authority (FAA) grounded the aircraft. The MAX production line at Renton has now stopped production of the aircraft after announcing a suspension in December last year.  Boeing continues to work on fixing the problem with the MCAS flight control software amidst reports of further software and wiring issues.

Parked 737 MAX at Renton © CNN

The FAA is unlikely to approve a return to service until March or April this year, and many airlines including American and Southwest are assuming the MAX will not be available until early June.

So far, it’s reported that the Seattle manufacturer has secured at least $6 billion from Citigroup, Bank of America, JP Morgan and Wells Fargo. The planned loans are two-year, delayed draw loans; in effect a pot of money that Boeing can tap into as needs arise.

Boeing doesn’t receive the bulk of payments for aircraft until they are delivered, but are obliged to pay suppliers, hence their massive and increasing debt. Their long-term debt at September 30, 2019 was nearly double that at the end of 2018, amounting to $20.3 billion. It’s estimated that the costs of the grounding are more than $9 billion to date and the company is losing about $1 billion a month; it has reported a negative cash flow of $3 billion for the third quarter of 2019. The interest on the loans will add to the debt.

Boeing has declined to comment on further details of the loans.

You Might Also Like

BREAKING: Qatar Ground Collision in Doha.
Almsgiving Ceremony in Luang Prabang, Laos
British Airways to Fly Direct from London to Lahore
Can a $50 million Boeing investment make up for Airbus’ ‘No Deal’ Brexit Threat to U.K.?
The Unnamed Heroes Behind an Incident- Rescue from Fire Fighting Services.
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
ByTravel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article China Southern A380 Route to London Heathrow
Next Article Final Call for South African Airways
Subscribe
Login
Notify of
guest

guest

2 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

A320neo-and-A321neo-in-flight-together
Airbus A320 Overtakes Boeing 737 as Most Popular Aircraft with Record Deliveries
Aircraft Aviation Manufacturing
British AIrways Boeing 787 Dreamliner in flight
British Airways to Boost Connectivity between India and the UK
Airline Economics Airlines Aviation Route Development
Emirates © Saim Munib on Unsplash
Emirates and flydubai Sign MoUs for ‘Dubai cashless strategy’
Aircraft Airline Economics Airlines Aviation Technology Travel Radar
East Midlands Airport , UK © EMA Airport
Data-led Vision for East Midlands Airport’s Commercial Potential
Airline Economics Airports Aviation Technology Travel Radar
President Donald Trump and VP Mike Pence
Air Traffic Control Tower Unmanned for 5 hours at Burbank Airport amid Government Shutdown
Airports Aviation Incidents & Accidents
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up