
Boeing is raising more money to sustain them during the strike.
The machinist union strike at Boeing is now over two months long and Boeing is certainly feeling the squeeze. Boeing's latest offer was turned down by the Machinists union and now they find themselves in a situation where they need to raise more capital.
according to CNBC.com,
Boeing on Monday launched a stock offering that could raise up to $22 billion as the planemaker looks to strengthen its finances squeezed by an over month-long strike by its workers and preserve its investment-grade credit rating.
Preserving this investment grade credit rating Could be critical to Boeing's survival. At this point the question is, will this give them a stronger or weaker position as they continue to try to negotiate with the Machinists Union.
If you combine the problems that Boeing has been having for the last three quarters with production and then add to that the machinist strike Boeing has been hemorrhaging money for months and they need to turn it around.
Boeing is losing approximately $1 billion a month during the strike and at this point there doesn't seem to be an end in sight. The company is trying to compensate by borrowing money and laying off 10% of their workforce.
I have to believe that they can come to an agreement with the Machinist Union and solve their monetary problems. But the sums of money they're talking about make my head spin.
Boeing to raise up to $22 billion to shore up finances, stave off downgrade
BA: Boeing Co - Stock Price, Quote and News - CNBC
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