Sources: Boeing plans to raise money but dragged down by 737 Max crisis

Boeing is reportedly seeking to raise additional funds to help boost the company’s financial resources following the suspension of its 737 Max. Although Boeing had about $20 billion in available capital at the end of the third quarter, the costs of the 737 Max crisis are rising, sources said.

Sources: Boeing plans to raise money dragged down by 737 Max crisis

Boeing is halting production of the 737 Max. The aircraft has not yet been approved for re-entry after two crashes in a row. While the shutdown has reduced some costs, it also means longer waiting times for the finished aircraft. Boeing also faces compensation claims from airlines affected by the 737 Max suspension and the families of the crash victims.

Analysts expect Boeing to raise up to $5 billion to help it cover expenses that could exceed $15 billion in the first half of the year. The funds will help maintain the 737 Max production facilities and the finished aircraft, as well as complete the $4 billion acquisition of an 80 percent stake in Embraer’s passenger aircraft business.

In addition, the Boeing 737 MAX may face more problems if it wants to return to flight, according to multiple reports. The Federal Aviation Administration (FDA) may require more training for 737 MAX pilots. Boeing confirmed that an internal audit in the media had uncovered an electronic line problem that controlled the aircraft’s tail.

Boeing was down 1.27 percent in premarket trading.

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