As per reports, Boeing (NYSE: BA) is trying to attempt to arrange funding for its 737 MAX, as it awaits regulatory approval for design changes amid 15 months grounding following two fatal crashes. The aerospace giant seems to be anxious to resume deliveries even once the regulators declare it safe, as the confidence in the aircraft has been hit hard after the legal challenges, prolonged grounding, and the decreasing demand amid the COVID-19 pandemic.
The value of MAX jets on the aircraft market has fallen by 11% since the start of 2020. Additionally the unavailability of capital markets after the collapse in air travel during the COVID-19 crisis and banks refusing to invest in new business, only leasing companies can be banked upon for finance, bankers informed. As its last hope, Boeing stands ready to buy back jets and lease them to airlines itself through its Boeing Capital financing unit, as a temporary measure.
As per the Wall Street Journal, American had threatened to cancel some orders unless Boeing helped with funding. The loss of a high-profile order from American would deal a harsh blow to the MAX program, forcing the aerospace giant to tear up plans for an all-new plane and agree a faster upgrade to its 737 after American was planning to hand over 460-plane order to Airbus.
Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.
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