Boeing CEO David Calhoun on restarting production of Boeing 737 Max jets, keeping a close relationship with the FAA and maintaining credibility.
As ramifications from the coronavirus pummel U.S. financial markets, Boeing is caught in the crosshairs as it continues to deal with the fallout from the Max Jet crisis.
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Shares tumbled Wednesday over 10 percent and weighed on the Dow Jones Industrial Average on reports the planemaker will draw on its previously established $12 billion line of credit, as reported by Reuters citing sources close to the company. The stock is hovering near levels not seen since July 2017.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | BOEING COMPANY | 231.01 | +3.84 | +1.69% |
| I:DJI | DOW JONES AVERAGES | 25018.16 | +1,167.14 | +4.89% |
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Boeing’s new CEO David Calhoun confirmed the loan on the company’s January earnings call. “We’ve received commitment from a syndicate of banks sufficient to entry into $12 billion term loan facility” he said. This followed reports that Citigroup, Bank of America Merrill Lynch, Wells Fargo and JPMorgan Chase were all working to help shore up funds for the planemaker.
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Boeing has been hammered by lost orders as the Max Jet remains out of commission as regulators work to re-certify the jet once it becomes safe to fly again. The plane model was involved in two fatal crashes prompting the aircraft to be grounded.
Boeing did not immediately return an inquiry from FOX Business.
