Boeing considering debt raise amid 737 Max crisis: Report
The 737 Max isn't expected to return to service until February at the earliest
Boeing is reportedly considering a move to bolster its finances as it struggles to get its best-selling 737 MAX aircraft back in service.
The aerospace giant could raise more debt in order to help deal cover expenses related to the 737 Max, The Wall Street Journal reports, citing people familiar with the matter. The company had about $20 billion of available funds at the end of the third quarter.
A Boeing spokesperson did not immediately respond to FOX Business' request for comment.
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The need for additional debt could help Boeing with the mounting costs associated with the 737 Max. Aside from claims associated with the deadly crashes in Indonesia and Ethiopia, the company is also dealing with costs associated with getting the aircraft back in service.
Boeing temporarily froze production of the 737 Max in January. It was previously building 40 aircraft per month, creating a backlog of around 400 jets. The 737 Max isn't expected to return to the skies until February at the earliest.
A worker enters a Boeing 737 MAX 8 airplane during a brief media tour of Boeing's 737 assembly facility in Renton, Wash. (AP Photo/Ted S. Warren, File)
Later this year, Boeing is expected to close on its $4.2 billion deal for an 80 percent stake in Brazilian-based Embraer.
The 737 Max crisis has taken a toll on Boeing's bottom line.
Rival Airbus took the crown as the No. 1 planemaker in 2019, delivering 863 aircraft, according to Reuters, citing airport and tracking sources. Boeing, meanwhile, had delivered 345 jets through November, down 51 percent from a year prior.
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Deliveries are an important metric for planemakers' bottom lines as they receive the majority of their payments once a customer receives the aircraft.