Cash-starved Boeing, contending with massive financial losses from a crippling strike and years of operational and safety problems, is turning to major banks and Wall Street to raise tens of billions of dollars in cash.
In a regulatory filing early Tuesday, the company announced plans to borrow US$10 billion from a consortium of banks. It also separately announced plans to raise US$25 billion by selling stock and debt. The US$10 billion borrowing plans would be included in the US$25 billion that Boeing filed to raise.
The company鈥檚 debt surged in the last six years as Boeing reported . Its commercial airplane production has ground to a near halt by a by 33,000 members of the International Association of Machinists.
Talks between Boeing and IAM last week with no new negotiations planned. On Friday, Boeing鈥檚 new CEO Kelly Ortberg announced of 171,000 workers.
Boeing鈥檚 credit rating has plunged to the lowest investment-grade level 鈥 just above 鈥渏unk bond鈥 status 鈥 and major credit rating agencies have warned Boeing is in danger of being downgraded to junk. That would raise its cost of borrowing. Boeing鈥檚 long-term debt has climbed to US$53 billion at the end of June from US$10.7 billion at the end of March 2019, when a second fatal crash of the 737 Max led to a 20-month grounding of that plane, the company鈥檚 best-selling aircraft.
Over the last six years, Boeing has been buffeted by one problem after another, ranging from embarrassing to tragic. Two 737 Max crashes killed 346 people, a tragedy for which the company agreed to plead guilty to deceiving the Federal Aviation Administration during the certification process for the plane. A federal judge is considering whether or not to accept its that would include up to US$487 million in fines and require it to operate under the supervision of a court-appointed monitor. Attorneys for families of the crash victims argued in court that the penalty is not severe enough.
have testified before Congress that Boeing鈥檚 production process , violating the company鈥檚 own rules. That was driven home in January when a of a 737 Max flown by Alaska Airlines, leaving a gaping hole in the plane shortly after takeoff. While none of the crew members or passengers were severely injured, the incident prompted numerous federal investigations, including one that found the plane had left a Boeing factory needed to keep the door plug in place.
The strike by the IAM is just the latest blow. Last month, the company and union leadership agreed to a tentative deal that would have given union members a 25% raise over the four-year life of the contract, only to have the rank-and-file vote nearly unanimously to reject the deal and go on strike. Boeing鈥檚 offer to increase the raises to 30% over the life of the deal was also rejected by union negotiators.
Despite all of its problems, Boeing is able to borrow money from the consortium of banks and likely will be able to sell the stock and debt issues it needs on Wall Street because of the unique market position in which it operates. Boeing and European rival Airbus are essentially the only companies that make the full-size jets that the global airline industry needs. Its place as part of a duopoly essentially .
Both have backlogs of orders stretching for years into the future. And Airbus doesn鈥檛 have the capacity to take on Boeing鈥檚 orders. Should an airline cancel its orders for Boeing jets and place orders with Airbus instead, it would have to wait as many as five years for deliveries to start for those planes. And it would take years for another competitor to win approval for its own aircraft should it try to enter the market. So while Boeing has lost market share to Airbus in recent years, it isn鈥檛 going anywhere.
But the halt in production of its 737 Max, as well as its 767 and 777 freighters caused by the strike will create more cash flow problems for Boeing in the near-term, since it gets most of the money from the sale of a plane at the time of delivery. In addition, the company announced Friday that its already long-delayed 777X, the next generation of that widebody passenger jet, will be delayed further due to . It is now not due to start deliveries until 2026.
As Prime Minister Justin Trudeau faces growing pressure to step aside, former B.C. premier Christy Clark says she is open to 'returning to politics' should the position of Liberal leader become available.
Polls are now closed in New Brunswick, where hundreds of thousands of residents voted Monday in what is predicted to be a tight provincial election.
Two men charged in the killing of former Air India bombing suspect Ripudaman Singh Malik have pleaded guilty to second-degree murder in a British Columbia court.
The University Health Network (UHN) is making masks mandatory as respiratory illness season ramps up.
The investigation into the sudden death of a 19-year-old Walmart employee over the weekend is ongoing in Halifax.
Gurpatwant Singh Pannun 鈥 a dual Canada-United States citizen and the target of an alleged assassination attempt in New York City last year 鈥 says the expelled Indian High Commissioner to Canada, Sanjay Kumar Verma, is 'less of a diplomat, and more of a hypocrite.'
Mounties on Vancouver Island say one person is dead and another is presumed to have drowned after two vehicles were found submerged in a river following heavy rains that washed out roadways across British Columbia.
Daily life in Cuba has been largely affected since an outage led to a nationwide blackout in the country, followed by Tropical Storm Oscar hitting the country's east coast. If you're a Canadian stuck in Cuba through this ordeal, 麻豆影视 wants to hear from you.
A U.S.-based food manufacturer that supplies frozen waffles to major grocery chains across North America has launched a voluntary recall over concerns its products carry the potential for illness.
Daily life in Cuba has been largely affected since an outage led to a nationwide blackout in the country, followed by Tropical Storm Oscar hitting the country's east coast. If you're a Canadian stuck in Cuba through this ordeal, 麻豆影视 wants to hear from you.
Mounties on Vancouver Island say one person is dead and another is presumed to have drowned after two vehicles were found submerged in a river following heavy rains that washed out roadways across British Columbia.
Two men charged in the killing of former Air India bombing suspect Ripudaman Singh Malik have pleaded guilty to second-degree murder in a British Columbia court.
A 23-year-old woman is recovering in hospital after being shot while lying in her bed in Repentigny, Que. on Friday night.
The investigation into the sudden death of a 19-year-old Walmart employee over the weekend is ongoing in Halifax.
Ontario Provincial Police charged an impaired Vermont man who illegally crossed the border into Canada and thought he was still in the United States.
Law enforcement officials found five people killed in a shooting inside a home southeast of Seattle on Monday morning and took a teenager into custody, police said.
The navy identified on Monday the two crew members who died last week in a jet fighter crash near Mount Rainier as two 31-year-old aviators from California.
Members of the 'Central Park Five' sued former President Donald Trump on Monday over "false and defamatory" statements they allege he made about their 1989 case during a presidential debate last month.
New York magazine and its star political reporter, Olivia Nuzzi, have decided jointly to "part ways" after reports that she had a personal digital relationship with a source while covering the 2024 campaign.
A new three-minute time limit on goodbye hugs in a New Zealand's airport drop-off area is intended to prevent lingering cuddles from causing traffic jams.
Jury selection began Monday in the trial of a U.S. Marine Corps veteran charged with manslaughter for placing a man in a deadly chokehold on a New York City subway train last year.
As Prime Minister Justin Trudeau faces growing pressure to step aside, former B.C. premier Christy Clark says she is open to 'returning to politics' should the position of Liberal leader become available.
Liberal MP Sean Casey is the first to publicly confirm that he has signed a letter calling on Prime Minister Justin Trudeau to resign, arguing it would be in the best interests of the country to let someone else take the reins.
Gurpatwant Singh Pannun 鈥 a dual Canada-United States citizen and the target of an alleged assassination attempt in New York City last year 鈥 says the expelled Indian High Commissioner to Canada, Sanjay Kumar Verma, is 'less of a diplomat, and more of a hypocrite.'
A U.S.-based food manufacturer that supplies frozen waffles to major grocery chains across North America has launched a voluntary recall over concerns its products carry the potential for illness.
The University Health Network (UHN) is making masks mandatory as respiratory illness season ramps up.
A Quebec-based religion says Health Canada is dragging its feet on a decision whether to allow members to use magic mushrooms in their ceremonies.
In the fight against cyber attackers, they reason AI can help just as much as it harms.
The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.
A Newfoundland scientist known for identifying a gelatinous, rancid mass that washed up on the island's shores decades ago is hoping to get his hands on a slice of the strange white globs appearing on the province's beaches.
Seven new lawsuits have been filed against Sean 鈥楧iddy鈥 Combs, including one alleging the rape of a 13-year-old girl. They come as his lawyers tried again Monday to get him freed on bail, and complained that a 鈥渇resh wave of publicity鈥 is endangering his right to a fair criminal trial.
Jennifer Lawrence will soon be a mom of two. The Oscar-winning actress is pregnant with her second child, a representative for Lawrence told Vogue on Sunday.
London鈥檚 Hyde Park was one of the several sites around the world this weekend for an outpouring of love, grief and recollection in honor of Liam Payne, the former One Direction boy band member who tragically fell to his death at a hotel in Buenos Aires last week at the age of 31.
Nearly six months after its opening, the Trans Mountain pipeline expansion is boosting Canada's energy sector as promised 鈥 but questions still linger about who will pay for the project's massive cost overruns.
A Waterloo, Ont. tech company says it鈥檚 been removed from the U.S. Department of Commerce鈥檚 entity list, after previously supplying technology allegedly used for mass surveillance and censorship.
High grocery and rental costs are squeezing lower-income Canadians even as inflation trends downward, a new survey suggests.
Husband-and-wife food bloggers and podcasters Sonja and Alex Overhiser have a new cookbook that uses a simple step to keep the kitchen a less heated place for two chefs: clear, alternating roles.
At 2 p.m. on Thursday, the scene at the Lions Club in Clarenville, N.L., rivalled any rowdy St. John's bar that thumps with music late on a weekend night.
The retired elementary teachers, Tony and Francine Smarrelli, originally from Syracuse, New York, resolved to leave the U.S. and move to Italy for good. They say they鈥檝e cut back nearly US$3,000 per month on expenses, which amounts to US$36,000 a year, since moving there permanently.
A parliamentary committee will not question the coaches of the national women's soccer team about the Paris Olympics cheating scandal, after Liberal and Bloc Qu茅b茅cois MPs voted against launching a study today.
If LeBron James Sr. and his son, Bronny, make NBA history Tuesday night by playing in the same game for the Los Angeles Lakers, Ken Griffey Sr. and Ken Griffey Jr. will be there to witness it.
A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.
An increased risk of fire has prompted the recall of thousands of Honda hybrid vehicles in Canada.
The U.S. government's road safety agency is investigating Tesla's 'Full Self-Driving' system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian.
Canada鈥檚 border guards have seized more than 1,900 stolen cars so far this year at railyards and ports, which is over a hundred more than in 2023.
A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.
Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.
Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.
The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.
A Moncton, N.B., home has been donated to the Friends of The Moncton Hospital Foundation and will be transformed into a resource hub for people living with cancer.
A Nova Scotia man crossing Canada on foot is passing through southwestern Ontario. Trevor Redmond is perhaps better known as the 鈥楩ellow in Yellow.鈥
John Cantin vividly remembers opening day for his Victoria diner. Stress levels were high, tables were full, and one of the most popular menu items couldn鈥檛 be freed from the unyielding grip of the waffle maker.
A Manitoba professor is warning the public after a book on regional mushrooms that he suspects is AI-generated was delisted from Amazon.
A B.C. judge has issued a decision in a years-long dispute between neighbours that began with a noise complaint over barking dogs, crowing roosters and quacking ducks 鈥 awarding $15,000 in damages to the plaintiffs in the case.
Mounties on Vancouver Island say one person is dead and another is presumed to have drowned after two vehicles were found submerged in a river following heavy rains that washed out roadways across British Columbia.
A school in Victoria, B.C., went into lockdown Monday before police tasered and arrested a man in the library, according to authorities.
Former B.C. Green leader Andrew Weaver knows what it's like to form a minority government with the NDP, but says such a deal to form the province's next government is less likely this time than seven years ago.
The University Health Network (UHN) is making masks mandatory as respiratory illness season ramps up.
A Durham police officer has been charged criminally after he allegedly failed to render medical assistance to a person in distress.
A 25-year-old Hamilton man who was shot after letting a six-year-old child play with his gun is facing charges, police say. That鈥檚 just one incident in what Hamilton police say has been a record year for shootings in the city.
Three people were sent to hospital following a crash on Peigan Trail Monday morning.
Calgary Parking says there is 鈥渘o need to worry鈥 about stickers covering the contactless payment sensors on payment machines in the city.
Police now say a deadly shooting Friday evening in northeast Calgary is linked to organized crime. According to police, about a quarter of the year's total shootings are.
A cat rescue southwest of Ottawa is under investigation after allegations of abuse, neglect and falsified medical records have surfaced.
OC Transpo says the line finished the test with a 14-day rolling average on-time performance of 99.5 per cent.
As federal employees head into the office three days a week under the federal government's new hybrid work model, the City of Ottawa is only requiring its hybrid employees to be in the office a minimum of two days a week.
A Quebec-based religion says Health Canada is dragging its feet on a decision whether to allow members to use magic mushrooms in their ceremonies.
A 23-year-old woman is recovering in hospital after being shot while lying in her bed in Repentigny, Que. on Friday night.
Some people living in the Le Plateau-Mont-Royal are seeing red over a new landscaping project meant to bring more green to the neighbourhood.
Edmonton Public Schools support workers will go on strike on Thursday.
Edmonton Oilers head coach Kris Knoblauch told media Monday after practice that although his team's usually potent power play has been sputtering badly to start the season, he's not ready 鈥 yet 鈥 to make changes to it.
A Stony Plain basketball coach has pleaded guilty to child pornography charges.
Polls are now closed in New Brunswick, where hundreds of thousands of residents voted Monday in what is predicted to be a tight provincial election.
The investigation into the sudden death of a 19-year-old Walmart employee over the weekend is ongoing in Halifax.
A very fair and mild October weekend allowed for a few recording-setting high temperatures in the Maritimes.
Almost half of the Winnipeg鈥檚 construction projects are either done or substantially done, according to the city.
Starting next month, all buses in Manitoba will require functional heating systems for passengers.
A 17-year-old girl is facing charges in connection with a machete attack involving two teenage boys outside a Winnipeg school.
SaskPower is warning customers of an email scam currently making the rounds.
Regina police are asking the public for help as it searches for a suspect involved in an assault in the North Central area on Sunday.
A construction firm has pled guilty in the case of a serious workplace injury in 2023 near Moose Jaw.
Victims are sharing the lasting impact of the 2023 triple stabbing at the University of Waterloo. The attacker, Geovanny Villalba-Aleman, previously pled guilty to four assault-related charges.
Testimony continued Monday at the trial of Erick Buhr, who has pleaded not guilty to the second-degree murder of his grandmother, Viola Erb.
A Waterloo, Ont. tech company says it鈥檚 been removed from the U.S. Department of Commerce鈥檚 entity list, after previously supplying technology allegedly used for mass surveillance and censorship.
A Saskatoon LGBTQ+ advocate says if the Saskatchewan Party's proposed change room policy had been in place when he was a kid, he would not have survived high school.
The RCMP says a 32-year-old Saskatchewan woman has been charged with criminal negligence and impaired driving after causing a fatal collision in the wrong lane of Highway 11.
Saskatoon police have arrested a woman who investigators believe may have pushed a 76-year-old man down a flight of stairs on Friday night.
It鈥檚 a story of survival and perseverance. A Chihuahua and terrier mix named Diamondhas been reunited with her owners after going missing in Markstay-Warren in March.
Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.
An Indigenous group in northwestern Ontario shut down the highway for a couple of hours Monday morning in protest after ancestral remains were found at a construction site.
"We cannot allow the dehumanization of women and girls to occur even in its smallest [form]," said Mayor Morgan while speaking at the podium.
Around 10 p.m. on Oct. 17, police said a teenaged girl met a man in the area of Clarke Road and Wavell Street. The two people struck up a conversation and walked together to the east side of a school in the area.
A crossing near the intersection of Highbury and Florence was shut down on Monday afternoon for rail repairs.
It's a summer-like day in mid-October, with temperatures hitting 24C across Simcoe County, feeling more like 27C with the humidex. These daytime highs aren't unheard of, but they are definitely not the norm.
Police charged a motorist after a vehicle crashed into a home in Innisfil Monday afternoon.
Officials say a candle caused a fire that destroyed a mobile trailer in Oro-Medonte early Friday morning.
The Windsor Liberation Zone organizers are pleased that the University of Windsor will not reconsider two agreements made with pro-Palestinian protestors. The agreements were signed after a nine-week occupation.
Despite the uncertainties of caring for a mother with Alzheimer鈥檚 disease, Lisa Williams feels fortunate to have the time, energy and support of her immediate family.
The running community is mourning the death of a runner following the Detroit Free Press Marathon.
Mounties on Vancouver Island say one person is dead and another is presumed to have drowned after two vehicles were found submerged in a river following heavy rains that washed out roadways across British Columbia.
A school in Victoria, B.C., went into lockdown Monday before police tasered and arrested a man in the library, according to authorities.
Two people have been arrested and one is still at large in the alleged murder of a woman on Vancouver Island whose 2023 overdose death police treated as suspicious.
Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.
A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.
Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.
Lethbridge police are advising the public of officer training on Tuesday that will happen in two different venues throughout the day.
Calgary scored three times in the first, and three times in the third as the Hitmen defeated the Lethbridge Hurricanes 6-1 Saturday at the Saddledome.
The last students to graduate from Lethbridge College will make history this weekend as they cross the stage at fall convocation.
Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.
An Indigenous group in northwestern Ontario shut down the highway for a couple of hours Monday morning in protest after ancestral remains were found at a construction site.
The owners of 73 vacant properties in the Sault have been fined for violations of the city's vacant properties bylaw, including 33 owned by a firm going through a high-profile insolvency process.
Police in western Newfoundland say a 77-year-old man visiting the province from Kansas is missing after a fire at a hotel in Deer Lake, N.L.
At 2 p.m. on Thursday, the scene at the Lions Club in Clarenville, N.L., rivalled any rowdy St. John's bar that thumps with music late on a weekend night.
A Newfoundland scientist known for identifying a gelatinous, rancid mass that washed up on the island's shores decades ago is hoping to get his hands on a slice of the strange white globs appearing on the province's beaches.
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