Boeing's US West Coast factory workers accepted a new contract offer on Monday, their union said, bringing an end to an economically challenging seven-week strike that halted most jet production and deepened a financial crisis at the troubled plane maker as detailed in a report by Reuters.

The union said members voted 59 per cent in favour of the new contract, which includes a 38 per cent pay rise spread over four years, easing pressure on new Boeing CEO Kelly Ortberg after two previous offers were voted down in recent weeks. 

"This is a victory. We can hold our heads high," Jon Holden the union's lead negotiator, told members after the results were announced the Reuters report elaborated further.

Welcome relief for Boeing as 33,000 machinists end strike<o:p></o:p>

The end of the first strike in 16 years by Boeing's largest union provides welcome relief for a company that has lurched from one setback to the next since a door panel blew off a near-new 737 MAX plane in mid-air in January.

Around 33,000 machinists who work on the best-selling 737 MAX jet, as well as the 767 and 777 widebodies, have been on strike since September 13, demanding a 40 per cent wage increase and the restoration of a defined-benefit pension lost a decade ago.

It will now take weeks to ramp up plane production and boost cash flow, with 737 MAX output expected to languish in the single digits per month for some time, according to two people briefed on the matter, far short of the 38-a-month targeted before the strike.

Workers need to return to work by November 12<o:p></o:p>

Workers can start building planes again from Wednesday and must be back to work by November 12, the International Association of Machinists and Aerospace Workers (IAM) said, although Boeing has warned that some people will have to be retrained due to the prolonged period away from the factory floor.

The strike was costing Boeing around $100 million a day in lost revenue, analysts said, prompting the planemaker to raise $24 billion from investors last week in a bid to preserve its investment-grade credit rating.

Ortberg now needs to reset relations with machinists in the Pacific Northwest who have used the strike to vent anger built up over a decade when wages have lagged inflation and the cost of living in the Seattle area has soared. Boeing has said the average annual machinists' pay at the end of the new four-year contract will be $119,309, up from $75,608 previously. 

The pay increase may add $1.1 billion to Boeing's wage bill over the four years, while a $12,000 ratification bonus for each union member could result in another $396 million in outflows, according to analysts at Jefferies.

This positive development for Boeing is going to resonate well among market participants and investors. It will also help them make informed investment decisions.

Boeing's US West Coast factory workers accepted a new contract offer on Monday, their union said, bringing an end to an economically challenging seven-week strike that halted most jet production and deepened a financial crisis at the troubled plane maker as detailed in a report by Reuters.

Boeing's US West Coast factory workers accepted a new contract offer on Monday, their union said, bringing an end to an economically challenging seven-week strike that halted most jet production and deepened a financial crisis at the troubled plane maker as detailed in a report by Reuters. The union said members voted 59 per cent in favour of the new contract, which includes a 38 per cent pay rise spread over four years, easing pressure on new Boeing CEO Kelly Ortberg after two previous offers were voted down in recent weeks. "This is a victory. We can hold our heads high," Jon Holden the union's lead negotiator, told members after the results were announced the Reuters report elaborated further. Welcome relief for Boeing as 33,000 machinists end strike The end of the first strike in 16 years by Boeing's largest union provides welcome relief for a company that has lurched from one setback to the next since a door panel blew off a near-new 737 MAX plane in mid-air in January. Around 33,000 machinists who work on the best-selling 737 MAX jet, as well as the 767 and 777 widebodies, have been on strike since September 13, demanding a 40 per cent wage increase and the restoration of a defined-benefit pension lost a decade ago. It will now take weeks to ramp up plane production and boost cash flow, with 737 MAX output expected to languish in the single digits per month for some time, according to two people briefed on the matter, far short of the 38-a-month targeted before the strike. Workers need to return to work by November 12 Workers can start building planes again from Wednesday and must be back to work by November 12, the International Association of Machinists and Aerospace Workers (IAM) said, although Boeing has warned that some people will have to be retrained due to the prolonged period away from the factory floor. The strike was costing Boeing around $100 million a day in lost revenue, analysts said, prompting the planemaker to raise $24 billion from investors last week in a bid to preserve its investment-grade credit rating. Ortberg now needs to reset relations with machinists in the Pacific Northwest who have used the strike to vent anger built up over a decade when wages have lagged inflation and the cost of living in the Seattle area has soared. Boeing has said the average annual machinists' pay at the end of the new four-year contract will be $119,309, up from $75,608 previously. The pay increase may add $1.1 billion to Boeing's wage bill over the four years, while a $12,000 ratification bonus for each union member could result in another $396 million in outflows, according to analysts at Jefferies. This positive development for Boeing is going to resonate well among market participants and investors. It will also help them make informed investment decisions.

Boeing strike ends as workers accept the new contract offer

Boeing’s US West Coast factory workers are voting on a revised contract offer that could end a seven-week strike, which has disrupted production of key aircraft like the 737 MAX as detailed in a report by Reuters.

The vote, taking place, follows weeks of negotiations. The company is offering an improved 38 per cent&nbsp;wage increase over four years, up from an earlier proposal of 35 per cent&nbsp;that was rejected by the majority of the 33,000 machinists who walked off the job on September 13, the Reuters report elaborated further.

Boeing's financial challenges remain

The new offer comes at a critical time for Boeing, which has been struggling financially due to the strike and its impact on production. Last week, the company announced a $24 billion share offering to help stabilise its finances the Reuters report detailed further.

Boeing’s shares gained 0.3 per cent on November 5, reflecting some investor optimism. If the contract passes, workers could return to their jobs as early as Wednesday, but no later than November 12, according to the&nbsp;International Association of Machinists and Aerospace Workers.&nbsp;

Brandon Bryant, president of IAM District W24 in Oregon, noted that many workers are eager to return to production. "They think this is a good contract. It’s a great step forward," Bryant said, acknowledging that while the deal may not resolve all the issues, it lays a solid foundation for future improvements.

While the deal represents a significant pay increase, it may still not satisfy all workers. Some, like machine operator Jeffrey Dodge, have expressed dissatisfaction with the deal, saying it doesn’t fully compensate for years of stagnating wages and the loss of a defined-benefit pension. Dodge, who also works a side job to make ends meet, is among those voting against the agreement, along with others in the Seattle-area Renton plant where 737 wings are produced.

Boeing has said the new contract would bring machinists' average annual pay to about $119,000 by the end of the four years, up from $75,000. While this increase is seen as a positive step for many workers, others feel it’s not enough to make up for a decade of wage stagnation and inflation.

The union has endorsed the latest offer, with IAM District 751 President Jon Holden warning that a rejection could lead to an even worse deal from Boeing. Workers are divided on the offer, with some seeing the 38 per cent&nbsp;raise as a fair deal, while others remain determined to push for a 40 per cent&nbsp;increase that they initially demanded.

If the deal is approved, it would help restore production of Boeing’s most important jets, including the 737 MAX, which has been a major revenue driver for the company. However, analysts expect that, the strike’s impact on production could push back Boeing’s target to produce 38 jets per month by the end of 2024.

Beyond Boeing’s internal challenges, the strike has had wider ramifications. Aerospace suppliers have been forced to furlough workers, and airlines are facing delays in receiving their aircraft. A positive outcome for Boeing could bring some relief to these sectors as well. 

The contract’s outcome also represents a pivotal moment for Boeing’s CEO, Kelly Ortberg, who took over the company in August. Ortberg has promised to repair the strained relationship with workers and bring about a cultural shift at the company, which has faced a series of setbacks since the 737 MAX crisis earlier this year. 

In the coming days, the results of the vote will reveal whether Boeing’s workers are ready to end the strike and resume their critical role in the company’s recovery.

Boeing’s US West Coast factory workers are voting on a revised contract offer that could end a seven-week strike, which has disrupted production of key aircraft like the 737 MAX as detailed in a report by Reuters.

Boeing’s US West Coast factory workers are voting on a revised contract offer that could end a seven-week strike, which has disrupted production of key aircraft like the 737 MAX as detailed in a report by Reuters. The vote, taking place, follows weeks of negotiations. The company is offering an improved 38 per cent wage increase over four years, up from an earlier proposal of 35 per cent that was rejected by the majority of the 33,000 machinists who walked off the job on September 13, the Reuters report elaborated further. Boeing's financial challenges remain The new offer comes at a critical time for Boeing, which has been struggling financially due to the strike and its impact on production. Last week, the company announced a $24 billion share offering to help stabilise its finances the Reuters report detailed further. Boeing’s shares gained 0.3 per cent on November 5, reflecting some investor optimism. If the contract passes, workers could return to their jobs as early as Wednesday, but no later than November 12, according to the International Association of Machinists and Aerospace Workers. Brandon Bryant, president of IAM District W24 in Oregon, noted that many workers are eager to return to production. "They think this is a good contract. It’s a great step forward," Bryant said, acknowledging that while the deal may not resolve all the issues, it lays a solid foundation for future improvements. While the deal represents a significant pay increase, it may still not satisfy all workers. Some, like machine operator Jeffrey Dodge, have expressed dissatisfaction with the deal, saying it doesn’t fully compensate for years of stagnating wages and the loss of a defined-benefit pension. Dodge, who also works a side job to make ends meet, is among those voting against the agreement, along with others in the Seattle-area Renton plant where 737 wings are produced. Boeing has said the new contract would bring machinists' average annual pay to about $119,000 by the end of the four years, up from $75,000. While this increase is seen as a positive step for many workers, others feel it’s not enough to make up for a decade of wage stagnation and inflation. The union has endorsed the latest offer, with IAM District 751 President Jon Holden warning that a rejection could lead to an even worse deal from Boeing. Workers are divided on the offer, with some seeing the 38 per cent raise as a fair deal, while others remain determined to push for a 40 per cent increase that they initially demanded. If the deal is approved, it would help restore production of Boeing’s most important jets, including the 737 MAX, which has been a major revenue driver for the company. However, analysts expect that, the strike’s impact on production could push back Boeing’s target to produce 38 jets per month by the end of 2024. Beyond Boeing’s internal challenges, the strike has had wider ramifications. Aerospace suppliers have been forced to furlough workers, and airlines are facing delays in receiving their aircraft. A positive outcome for Boeing could bring some relief to these sectors as well. The contract’s outcome also represents a pivotal moment for Boeing’s CEO, Kelly Ortberg, who took over the company in August. Ortberg has promised to repair the strained relationship with workers and bring about a cultural shift at the company, which has faced a series of setbacks since the 737 MAX crisis earlier this year. In the coming days, the results of the vote will reveal whether Boeing’s workers are ready to end the strike and resume their critical role in the company’s recovery.

Boeing workers vote on new wage deal to end seven-week strike

Boeing, a titan in the aerospace industry for over sixty years, is reportedly considering divesting parts of its space enterprise, stirring concern among industry experts according to a detailed report by The Guardian.

The company has played a pivotal role in major US space endeavours, from the construction of NASA's iconic Saturn V rockets that took humans to the moon to its involvement in the Space Shuttle program and ongoing contributions to the International Space Station (ISS) and the Space Launch System (SLS) the report detailed further.

&nbsp;However, a recent Wall Street Journal report highlighted the potential sale of significant portions of its space operations, a move linked to the disappointing performance of its Starliner spacecraft.

Boeing suffered a loss of $6 billion in September<o:p></o:p>

In September, Boeing announced staggering quarterly losses nearing $6 billion, compounded by a labour strike. New CEO Kelly Ortberg emphasised a need to focus on core competencies, stating, “We’re better off doing less and doing it better than doing more and not doing it well.”

This introspection raises questions about Boeing’s future in the space sector, although company representatives have not confirmed any plans to exit this domain entirely. 

Experts are astonished that Boeing, historically synonymous with US space achievements, is even contemplating scaling back its involvement. Dr. Donald Platt, an aerospace professor at Florida Tech, noted the company's deep pride in its space legacy. He commented on the severity of the challenges Boeing faces, particularly regarding the financial burden of the Starliner project, which has yet to achieve operational success. 

The departure of Ted Colbert, head of Boeing’s space division, amid a company-wide cleanup, adds to the uncertainty. The operational future of Starliner, intended as NASA's alternative to SpaceX’s Dragon capsule, remains unclear after technical issues forced its recent uncrewed return to Earth. NASA has since awarded upcoming crew rotation flights to SpaceX, leading to skepticism about Starliner's viability and future missions.

NASA Administrator Bill Nelson expressed confidence that Starliner would fly with a crew again, but experts like Platt caution against such optimism, especially with a potential change in administration that could influence NASA's priorities. The agency is currently “keeping options on the table” regarding Starliner, having invested over $5 billion since its inception, which adds to the friction between Boeing and NASA following the spacecraft's setbacks.

Analysts speculate on the feasibility of Boeing finding a buyer for parts of its space division, suggesting any potential sale would be highly selective. Clayton Swope from the Center for Strategic and International Studies noted the complexities of such a transaction, questioning the attractiveness of the segment given Boeing’s recent challenges. He pointed out that the new landscape of commercial spaceflight, characterized by fixed-price contracts, presents significant operational hurdles for traditional contractors like Boeing.

Hence,as Boeing navigates its turbulent space enterprise, the overarching question remains: can it pivot effectively to meet the evolving demands of the commercial space industry while maintaining its storied legacy in aerospace?

The company's introspection and potential restructuring may be necessary steps, but they also underline the broader challenges facing legacy aerospace firms in an era increasingly defined by new commercial partnerships and models.

Market participants and investors will closely follow the developments in Boeing along with how the strike in the company evolves going ahead. These developments will help market participants in taking better investment decisions.

Boeing, a titan in the aerospace industry for over sixty years, is reportedly considering divesting parts of its space enterprise, stirring concern among industry experts according to a detailed report by The Guardian.

Boeing, a titan in the aerospace industry for over sixty years, is reportedly considering divesting parts of its space enterprise, stirring concern among industry experts according to a detailed report by The Guardian. The company has played a pivotal role in major US space endeavours, from the construction of NASA's iconic Saturn V rockets that took humans to the moon to its involvement in the Space Shuttle program and ongoing contributions to the International Space Station (ISS) and the Space Launch System (SLS) the report detailed further. However, a recent Wall Street Journal report highlighted the potential sale of significant portions of its space operations, a move linked to the disappointing performance of its Starliner spacecraft. Boeing suffered a loss of $6 billion in September In September, Boeing announced staggering quarterly losses nearing $6 billion, compounded by a labour strike. New CEO Kelly Ortberg emphasised a need to focus on core competencies, stating, “We’re better off doing less and doing it better than doing more and not doing it well.” This introspection raises questions about Boeing’s future in the space sector, although company representatives have not confirmed any plans to exit this domain entirely. Experts are astonished that Boeing, historically synonymous with US space achievements, is even contemplating scaling back its involvement. Dr. Donald Platt, an aerospace professor at Florida Tech, noted the company's deep pride in its space legacy. He commented on the severity of the challenges Boeing faces, particularly regarding the financial burden of the Starliner project, which has yet to achieve operational success. The departure of Ted Colbert, head of Boeing’s space division, amid a company-wide cleanup, adds to the uncertainty. The operational future of Starliner, intended as NASA's alternative to SpaceX’s Dragon capsule, remains unclear after technical issues forced its recent uncrewed return to Earth. NASA has since awarded upcoming crew rotation flights to SpaceX, leading to skepticism about Starliner's viability and future missions. NASA Administrator Bill Nelson expressed confidence that Starliner would fly with a crew again, but experts like Platt caution against such optimism, especially with a potential change in administration that could influence NASA's priorities. The agency is currently “keeping options on the table” regarding Starliner, having invested over $5 billion since its inception, which adds to the friction between Boeing and NASA following the spacecraft's setbacks. Analysts speculate on the feasibility of Boeing finding a buyer for parts of its space division, suggesting any potential sale would be highly selective. Clayton Swope from the Center for Strategic and International Studies noted the complexities of such a transaction, questioning the attractiveness of the segment given Boeing’s recent challenges. He pointed out that the new landscape of commercial spaceflight, characterized by fixed-price contracts, presents significant operational hurdles for traditional contractors like Boeing. Hence,as Boeing navigates its turbulent space enterprise, the overarching question remains: can it pivot effectively to meet the evolving demands of the commercial space industry while maintaining its storied legacy in aerospace? The company's introspection and potential restructuring may be necessary steps, but they also underline the broader challenges facing legacy aerospace firms in an era increasingly defined by new commercial partnerships and models. Market participants and investors will closely follow the developments in Boeing along with how the strike in the company evolves going ahead. These developments will help market participants in taking better investment decisions.

Boeing's space legacy at risk as sale rumours emerge: Report

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters.

The strike, involving approximately 33,000 workers from the machinists union, began in September and has halted production of key aircraft, including the profitable 737 MAX. The company's financial health has significantly deteriorated as a result. Boeing is planning to offer 90 million shares of common stock along with $5 billion in mandatory convertible securities.

Ben Tsocanos, aerospace director at S&amp;P Global Ratings, commented on the implications of the offering, stating, "The offering is certainly favourable for credit quality. We'll factor it into our assessment of the rating in the context of continued negative free cash flow." Notably, Boeing has maintained its investment-grade rating throughout its history.

Investor interest appears robust, with reports indicating that the offerings are heavily oversubscribed, likely pricing close to the last closing price of $155 per share. In afternoon trading, shares dipped by 0.6 per cent. If demand remains high, Boeing has the option to issue an additional 13.5 million shares and increase the mandatory convertible offering by another $750 million.

Further, from Friday's closing price, Boeing could potentially raise approximately $13.95 billion from the common stock offering, with an additional $2.1 billion if the offering is oversubscribed. The mandatory convertible offering could generate up to $5.75 billion, according to a term sheet, the Reuters report detailed further.

Pricing for the offerings is anticipated to occur after market hours on Monday. The mandatory convertible securities will be marketed to investors with a dividend range of 6.0 per cent to 6.5 per cent, along with a premium of 17.5 per cent to 22.5 per cent based on the last closing price for conversion at or before the maturity date of October 15, 2027.

Maintaining its investment-grade credit rating is crucial for Boeing, especially in light of warnings from rating agencies regarding potential downgrades due to the ongoing strike. Such downgrades could increase the cost of capital for the company.

Boeing has already faced challenges due to a regulator-imposed production cap on its MAX jets following a mid-air incident earlier this year. Coupled with labour disputes, the company has reported a substantial cash burn, including a $6 billion loss in the third quarter alone. Striking workers recently rejected an improved contract offer, with their demands including a 40 per cent wage increase and a return to a defined-benefit pension plan, requests Boeing is unlikely to fulfil.

Earlier this month, Boeing secured a $10 billion credit agreement and announced plans to raise up to $25 billion through various offerings. S&amp;P has cautioned that a rating downgrade may follow if Boeing's cash balance drops below $10 billion or if it increases leverage to meet debt obligations.

As of September 30, Boeing had cash and marketable securities totalling $10.50 billion and faces $11.5 billion in debt maturities by February 2026, alongside commitments related to acquiring Spirit AeroSystems. 

The proceeds from the latest offerings are intended for general corporate purposes, which may include debt repayment.

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters.

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters. The strike, involving approximately 33,000 workers from the machinists union, began in September and has halted production of key aircraft, including the profitable 737 MAX. The company's financial health has significantly deteriorated as a result. Boeing is planning to offer 90 million shares of common stock along with $5 billion in mandatory convertible securities. Ben Tsocanos, aerospace director at S&P Global Ratings, commented on the implications of the offering, stating, "The offering is certainly favourable for credit quality. We'll factor it into our assessment of the rating in the context of continued negative free cash flow." Notably, Boeing has maintained its investment-grade rating throughout its history. Investor interest appears robust, with reports indicating that the offerings are heavily oversubscribed, likely pricing close to the last closing price of $155 per share. In afternoon trading, shares dipped by 0.6 per cent. If demand remains high, Boeing has the option to issue an additional 13.5 million shares and increase the mandatory convertible offering by another $750 million. Further, from Friday's closing price, Boeing could potentially raise approximately $13.95 billion from the common stock offering, with an additional $2.1 billion if the offering is oversubscribed. The mandatory convertible offering could generate up to $5.75 billion, according to a term sheet, the Reuters report detailed further. Pricing for the offerings is anticipated to occur after market hours on Monday. The mandatory convertible securities will be marketed to investors with a dividend range of 6.0 per cent to 6.5 per cent, along with a premium of 17.5 per cent to 22.5 per cent based on the last closing price for conversion at or before the maturity date of October 15, 2027. Maintaining its investment-grade credit rating is crucial for Boeing, especially in light of warnings from rating agencies regarding potential downgrades due to the ongoing strike. Such downgrades could increase the cost of capital for the company. Boeing has already faced challenges due to a regulator-imposed production cap on its MAX jets following a mid-air incident earlier this year. Coupled with labour disputes, the company has reported a substantial cash burn, including a $6 billion loss in the third quarter alone. Striking workers recently rejected an improved contract offer, with their demands including a 40 per cent wage increase and a return to a defined-benefit pension plan, requests Boeing is unlikely to fulfil. Earlier this month, Boeing secured a $10 billion credit agreement and announced plans to raise up to $25 billion through various offerings. S&P has cautioned that a rating downgrade may follow if Boeing's cash balance drops below $10 billion or if it increases leverage to meet debt obligations. As of September 30, Boeing had cash and marketable securities totalling $10.50 billion and faces $11.5 billion in debt maturities by February 2026, alongside commitments related to acquiring Spirit AeroSystems. The proceeds from the latest offerings are intended for general corporate purposes, which may include debt repayment.

Boeing eyes $22 billion stock offering to strengthen finances amid ongoing strike

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg.

The Bloomberg report further stated that the air-line major is set to raise more than $15 billion from the fundraising, one of the people said, adding that the amount could still rise depending on demand and need. Boeing’s advisers have been lining up potential investors for the offering, according to people familiar with the matter, who asked not to be identified as the information isn’t public as of yet.

Transaction to include shares and debt<o:p></o:p>

The transaction is likely to include shares as well as debt that can be converted into equity, the people said. The company on October 23 received clearance from the US Securities and Exchange Commission to sell as much as $25 billion of equity and debt, a move that could help Boeing avoid having its credit rating downgraded to junk.

Deliberations are ongoing and details of the offering, such as timing, could still change, the people said. A Boeing representative declined to comment on the issue. A $15 billion share sale would be the largest equity offering since SoftBank Group Corporation sold part of its stake in T-Mobile US Inc. in 2020, data compiled by Bloomberg show.

Boeing needs capital infusion to maintain an investment-grade rating<o:p></o:p>

Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on pace to use around $4 billion in cash during the fourth quarter, which would bring its free cash outflow to around $14 billion for the year.

Further, the Bloomberg report explained that the plane-maker expects to continue burning cash through the first half of next year as it restarts its aeroplane factories, including the assembly lines for its cash-cow 737 Max jetliner.

Boeing factory workers voted last week to reject the company’s latest contract offer, which included a wage increase of 35 per cent spread over four years. The company plans to cut its workforce by about 10 per cent, with reductions potentially including executives, managers and employees, Chief Executive Officer Kelly Ortberg said in a memo to employees on October 11.

Boeing was weighing raising at least $10 billion by selling new stock and was working with advisers to explore its options, Bloomberg News reported earlier this month. Bank of America Corp. analyst Ronald Epstein on October 23 estimated the company would look to raise between $18 billion and $20 billion.<o:p></o:p>

The company said on October 15 that it has a separate new credit agreement in place for $10 billion, giving it “additional short-term access to liquidity as we navigate through a challenging environment.”<o:p></o:p>

The Arlington, Virginia-based company reported third-quarter results on October 23, with revenue of $17.8 billion missing expectations and its two largest businesses both reporting widening losses. Boeing shares have slumped more than 40 per cent this year.

Boeing is considering options to streamline its broad portfolio, with Ortberg having begun a review of its businesses that he expects to conclude by the end of the year. The company is weighing options for the future of its troubled Starliner space capsule program as part of the review, Bloomberg News has reported. Whereas, Reuters reported earlier this month that Boeing planned to raise around $15 billion through stock and convertible bonds.

Market participants and global investors will closely follow these developments and make informed investment decisions on the actions Boeing takes to combat the current challenging economic environment for the company.<o:p></o:p>

<o:p>&nbsp;</o:p>

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg.

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg. The Bloomberg report further stated that the air-line major is set to raise more than $15 billion from the fundraising, one of the people said, adding that the amount could still rise depending on demand and need. Boeing’s advisers have been lining up potential investors for the offering, according to people familiar with the matter, who asked not to be identified as the information isn’t public as of yet. Transaction to include shares and debt The transaction is likely to include shares as well as debt that can be converted into equity, the people said. The company on October 23 received clearance from the US Securities and Exchange Commission to sell as much as $25 billion of equity and debt, a move that could help Boeing avoid having its credit rating downgraded to junk. Deliberations are ongoing and details of the offering, such as timing, could still change, the people said. A Boeing representative declined to comment on the issue. A $15 billion share sale would be the largest equity offering since SoftBank Group Corporation sold part of its stake in T-Mobile US Inc. in 2020, data compiled by Bloomberg show. Boeing needs capital infusion to maintain an investment-grade rating Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on pace to use around $4 billion in cash during the fourth quarter, which would bring its free cash outflow to around $14 billion for the year. Further, the Bloomberg report explained that the plane-maker expects to continue burning cash through the first half of next year as it restarts its aeroplane factories, including the assembly lines for its cash-cow 737 Max jetliner. Boeing factory workers voted last week to reject the company’s latest contract offer, which included a wage increase of 35 per cent spread over four years. The company plans to cut its workforce by about 10 per cent, with reductions potentially including executives, managers and employees, Chief Executive Officer Kelly Ortberg said in a memo to employees on October 11. Boeing was weighing raising at least $10 billion by selling new stock and was working with advisers to explore its options, Bloomberg News reported earlier this month. Bank of America Corp. analyst Ronald Epstein on October 23 estimated the company would look to raise between $18 billion and $20 billion. The company said on October 15 that it has a separate new credit agreement in place for $10 billion, giving it “additional short-term access to liquidity as we navigate through a challenging environment.” The Arlington, Virginia-based company reported third-quarter results on October 23, with revenue of $17.8 billion missing expectations and its two largest businesses both reporting widening losses. Boeing shares have slumped more than 40 per cent this year. Boeing is considering options to streamline its broad portfolio, with Ortberg having begun a review of its businesses that he expects to conclude by the end of the year. The company is weighing options for the future of its troubled Starliner space capsule program as part of the review, Bloomberg News has reported. Whereas, Reuters reported earlier this month that Boeing planned to raise around $15 billion through stock and convertible bonds. Market participants and global investors will closely follow these developments and make informed investment decisions on the actions Boeing takes to combat the current challenging economic environment for the company.

Boeing aims for capital boost exceeding $15 billion beginning Monday

Boeing shares closed about 1.5 per cent lower in market trading on October 24 after workers voted to extend a nearly six-week-old strike, throwing fresh uncertainty over the company's efforts to stabilize finances and restore its battered image according to a detailed report by Reuters.

The Reuters report further stated that some 64 per cent of West Coast factory workers on Wednesday rejected the company's latest contract offer, leaving assembly lines idle for nearly all the planemaker's commercial jets including the 737 MAX, the backbone of its balance sheet.

Basic details about the offer<o:p></o:p>

The offer included a 35 per cent general wage increase over four years but no defined benefit pension plan, which was one of the striking machinists' main demands. The rejection is a blow for new CEO Kelly Ortberg, who took the top job in August on a pledge to work more closely with factory workers than his predecessors.

Deadlock over the pension plan, which was withdrawn following a deal to keep jobs in Washington state a decade ago, raised immediate concerns over a longer strike as rating agencies monitor Boeing for a possible downgrade to junk status.

"A longer strike delays Boeing's recovery and increases financial pressure on the company and its (credit) rating," said Ben Tsocanos, aerospace director at S&amp;P Global Ratings. "The rejection raises the risk of a protracted strike if the obstacle is reinstatement of a pension. We believe the company is not likely to agree to a pension because of the cost."

Challenges for the company mount<o:p></o:p>

While others said the continued stoppage leaves the plane-maker with dwindling options as it continues to bleed cash. "Boeing is going to have to settle it and just make a higher offer, because they are just not in a position to duke it out," said Agency Partners analyst Nick Cunningham. 

Wells Fargo analyst Matthew Akers said raising the wage offer to meet the union's demand of 40 per cent could end the dispute, noting that online comments suggested members were divided on the pension issue. Some machinists vowed to fight on after the vote, with many still angry about the last pension deal signed a decade ago.

Cash burn continues for Boeing<o:p></o:p>

Analysts said the vote could complicate efforts to carry out a refinancing needed to stabilize Boeing's operations after the strike hampered its recovery from a string of previous crises. Many suppliers are also facing financial difficulties.

Boeing last week filed papers giving itself a window to raise as much as $25 billion to avoid losing its investment grade rating and separately secured a $10 billion credit line. Still, although many analysts say it would prefer to wait for the end of the strike and start generating more cash through deliveries before going to the markets, the labor power struggle has placed it under mounting pressure to clear the air.

"We wouldn't rule out a capital raise before the strike ends ... depending on market conditions," JP Morgan analyst Seth Seifman said in a note after the vote.

Coming on top of back-to-back crises over safety, quality, and an industry-wide shortage of parts and labor, the vote on Boeing's first major strike in 16 years overshadowed a $6 billion loss for the third quarter also announced on October 24.

Ortberg laid out plans to restore Boeing's fortunes after it lost significant share to European rival Airbus but told staff and investors the turnaround would take some time. Market participants and investors will closely follow these developments and take informed investment calls on the airline major.

Boeing shares closed about 1.5 per cent lower in market trading on October 24 after workers voted to extend a nearly six-week-old strike, throwing fresh uncertainty over the company's efforts to stabilize finances and restore its battered image according to a detailed report by Reuters.

Boeing shares closed about 1.5 per cent lower in market trading on October 24 after workers voted to extend a nearly six-week-old strike, throwing fresh uncertainty over the company's efforts to stabilize finances and restore its battered image according to a detailed report by Reuters. The Reuters report further stated that some 64 per cent of West Coast factory workers on Wednesday rejected the company's latest contract offer, leaving assembly lines idle for nearly all the planemaker's commercial jets including the 737 MAX, the backbone of its balance sheet. Basic details about the offer The offer included a 35 per cent general wage increase over four years but no defined benefit pension plan, which was one of the striking machinists' main demands. The rejection is a blow for new CEO Kelly Ortberg, who took the top job in August on a pledge to work more closely with factory workers than his predecessors. Deadlock over the pension plan, which was withdrawn following a deal to keep jobs in Washington state a decade ago, raised immediate concerns over a longer strike as rating agencies monitor Boeing for a possible downgrade to junk status. "A longer strike delays Boeing's recovery and increases financial pressure on the company and its (credit) rating," said Ben Tsocanos, aerospace director at S&P Global Ratings. "The rejection raises the risk of a protracted strike if the obstacle is reinstatement of a pension. We believe the company is not likely to agree to a pension because of the cost." Challenges for the company mount While others said the continued stoppage leaves the plane-maker with dwindling options as it continues to bleed cash. "Boeing is going to have to settle it and just make a higher offer, because they are just not in a position to duke it out," said Agency Partners analyst Nick Cunningham. Wells Fargo analyst Matthew Akers said raising the wage offer to meet the union's demand of 40 per cent could end the dispute, noting that online comments suggested members were divided on the pension issue. Some machinists vowed to fight on after the vote, with many still angry about the last pension deal signed a decade ago. Cash burn continues for Boeing Analysts said the vote could complicate efforts to carry out a refinancing needed to stabilize Boeing's operations after the strike hampered its recovery from a string of previous crises. Many suppliers are also facing financial difficulties. Boeing last week filed papers giving itself a window to raise as much as $25 billion to avoid losing its investment grade rating and separately secured a $10 billion credit line. Still, although many analysts say it would prefer to wait for the end of the strike and start generating more cash through deliveries before going to the markets, the labor power struggle has placed it under mounting pressure to clear the air. "We wouldn't rule out a capital raise before the strike ends ... depending on market conditions," JP Morgan analyst Seth Seifman said in a note after the vote. Coming on top of back-to-back crises over safety, quality, and an industry-wide shortage of parts and labor, the vote on Boeing's first major strike in 16 years overshadowed a $6 billion loss for the third quarter also announced on October 24. Ortberg laid out plans to restore Boeing's fortunes after it lost significant share to European rival Airbus but told staff and investors the turnaround would take some time. Market participants and investors will closely follow these developments and take informed investment calls on the airline major.

Boeing stock drops as workers turn down latest proposal

Boeing's recent proposal to its workers has sparked a notable increase in the company's stock prices, reflecting investor optimism. However, analysts are cautioning that the move may not be as straightforward as it appears, with concerns about potential pushback from employees according to a detailed report by Reuters.

About 33,000 workers will vote on the offer on Wednesday after a more than month-long work stoppage that has halted production of models including Boeing's best-selling 737 MAX narrowbody jets.

The contract proposal announced on Saturday includes a 35 per cent pay hike over four years, a $7,000 ratification bonus, a reinstated incentive plan and enhanced contributions to workers' 401(k) retirement plans, including a one-time $5,000 contribution plus up to 12 per cent in employer contributions.

The wage increase and ratification bonus are higher than in the previous offer, which was rebuffed by workers. But the salary hikes fall short of a 40 per cent pay rise over four years and the restoration of the traditional pension lost in 2014 demanded by the International Association of Machinists and Aerospace Workers union.

JPMorgan analyst Seth Seifman estimated the wage hikes might increase Boeing's costs by more than $1 billion, while Jefferies analyst Sheila Kahyaoglu expects wage-related expenses at about $1.3 billion the Reuters report detailed further. 

Positive reaction by the stock market

The stock market reacted positively to the news, with Boeing shares rising by approximately 5 per cent following the announcement. Investors are hopeful that this new proposal could lead to improved relations between the company and its workforce, ultimately benefiting Boeing's operational efficiency and financial performance.

Despite the initial surge in share prices, analysts are expressing caution regarding the long-term implications of the proposal. Many believe that while the offer may appease some workers, it could also lead to dissatisfaction among others who feel their needs are not being adequately addressed.

The potential for unrest among employees is a significant concern, especially given the current climate of heightened expectations for fair compensation and working conditions across various industries. Still, the current offer is seen as a better offer in comparison with the last one.

Prominent ratings agencies have warned of a downgrade if the strike drags on. Still, the current offer is seen as a step in the right direction by several market participants.&nbsp;"We view the proposal as a positive step," Ben Tsocanos, aerospace director at ratings agency S&amp;P Global, told Reuters. 

The work stoppage has halted production of Boeing's cash-cow 737 MAX, and 767 and 777 widebodies. Shares of supplier Spirit AeroSystems, which said last week it was furloughing 700 workers due to the strike, rose 4.3 per cent.

In a separate labor action, 5,000 workers were set to return to work at business jet maker Textron's facilities in Wichita, Kansas, after voting to accept a five-year contract providing wage increases of 31 per cent. In a boost to Boeing, Dubai's Emirates Airlines ordered five Boeing 777F freighters on Monday and will make a decision this year on a purchase of further Boeing or Airbus models. How things evolve for Boeing and its employees is now to be seen. Market watchers will keenly follow the developments for more insights.&nbsp;

Boeing's recent proposal to its workers has sparked a notable increase in the company's stock prices, reflecting investor optimism. However, analysts are cautioning that the move may not be as straightforward as it appears, with concerns about potential pushback from employees according to a detailed report by Reuters.

Boeing's recent proposal to its workers has sparked a notable increase in the company's stock prices, reflecting investor optimism. However, analysts are cautioning that the move may not be as straightforward as it appears, with concerns about potential pushback from employees according to a detailed report by Reuters. About 33,000 workers will vote on the offer on Wednesday after a more than month-long work stoppage that has halted production of models including Boeing's best-selling 737 MAX narrowbody jets. The contract proposal announced on Saturday includes a 35 per cent pay hike over four years, a $7,000 ratification bonus, a reinstated incentive plan and enhanced contributions to workers' 401(k) retirement plans, including a one-time $5,000 contribution plus up to 12 per cent in employer contributions. The wage increase and ratification bonus are higher than in the previous offer, which was rebuffed by workers. But the salary hikes fall short of a 40 per cent pay rise over four years and the restoration of the traditional pension lost in 2014 demanded by the International Association of Machinists and Aerospace Workers union. JPMorgan analyst Seth Seifman estimated the wage hikes might increase Boeing's costs by more than $1 billion, while Jefferies analyst Sheila Kahyaoglu expects wage-related expenses at about $1.3 billion the Reuters report detailed further. Positive reaction by the stock market The stock market reacted positively to the news, with Boeing shares rising by approximately 5 per cent following the announcement. Investors are hopeful that this new proposal could lead to improved relations between the company and its workforce, ultimately benefiting Boeing's operational efficiency and financial performance. Despite the initial surge in share prices, analysts are expressing caution regarding the long-term implications of the proposal. Many believe that while the offer may appease some workers, it could also lead to dissatisfaction among others who feel their needs are not being adequately addressed. The potential for unrest among employees is a significant concern, especially given the current climate of heightened expectations for fair compensation and working conditions across various industries. Still, the current offer is seen as a better offer in comparison with the last one. Prominent ratings agencies have warned of a downgrade if the strike drags on. Still, the current offer is seen as a step in the right direction by several market participants. "We view the proposal as a positive step," Ben Tsocanos, aerospace director at ratings agency S&P Global, told Reuters. The work stoppage has halted production of Boeing's cash-cow 737 MAX, and 767 and 777 widebodies. Shares of supplier Spirit AeroSystems, which said last week it was furloughing 700 workers due to the strike, rose 4.3 per cent. In a separate labor action, 5,000 workers were set to return to work at business jet maker Textron's facilities in Wichita, Kansas, after voting to accept a five-year contract providing wage increases of 31 per cent. In a boost to Boeing, Dubai's Emirates Airlines ordered five Boeing 777F freighters on Monday and will make a decision this year on a purchase of further Boeing or Airbus models. How things evolve for Boeing and its employees is now to be seen. Market watchers will keenly follow the developments for more insights.

Boeing shares rise after labour offer but analysts wary of worker pushback

Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining&nbsp; a deal that could end a more than month-long strike that has hobbled the manufacturers’ aircraft&nbsp; production as detailed in a report by CNBC.

The CNBC report further stated that the new proposal includes 35 per cent wage increases over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program and higher 401(k) contributions among other changes. Whereas, the ratification vote is set for Wednesday i.e., on October 23. 

The acting US Secretary of Labor Julie Su met with both parties earlier this week. “With the help of acting US &nbsp;Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” the International Association of Machinists and Aerospace Workers District 751 said in a statement Saturday.

Brief history of Boeing

The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers. It is also one of the largest defense contractor in the world based on revenue. The company has been consistently ranked as one of the largest exporters in the United States by dollar value. Boeing was founded by William E. Boeing in Seattle, Washington, on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997.

Role of the US Government in resolving the dispute<o:p></o:p>

“President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the ultimate decision on a contract will be for the union workers to decide,” a White House spokesperson said in a statement.

The strike began on September 13 after more than 30,000 machinists overwhelmingly rejected a tentative agreement that included 25 per cent wage increases over four years. Boeing later made improved offer but the union blasted it saying it was not negotiated.

“We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement. Boeing is working to stop bleeding cash as it grapples with a safety crisis stemming from a near-catastrophic door plug blowout on one of its 737 Maxes at start the year and challenges in its other programs.

The company earlier this month stated that it will report a deep loss and take charges of about $5 billion in its commercial and defense units. A ratified contract on Wednesday, when Boeing also reports full results, would be a victory for new CEO Kelly Ortberg, who took the company’s top job in August, tasked with reshaping the company.<o:p></o:p>

Further on October 11, he announced job cuts of 10 per cent of Boeing’s workforce and that the company will stop making 767s when orders are fulfilled in 2027. It is now to be seen how things evolve going forward, with market participants and investors looking forward to a final resolution to the dispute.

<o:p>&nbsp;</o:p>

Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining a deal that could end a more than month-long strike that has hobbled the manufacturers’ aircraft production as detailed in a report by CNBC.

Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining a deal that could end a more than month-long strike that has hobbled the manufacturers’ aircraft production as detailed in a report by CNBC. The CNBC report further stated that the new proposal includes 35 per cent wage increases over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program and higher 401(k) contributions among other changes. Whereas, the ratification vote is set for Wednesday i.e., on October 23. The acting US Secretary of Labor Julie Su met with both parties earlier this week. “With the help of acting US Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” the International Association of Machinists and Aerospace Workers District 751 said in a statement Saturday. Brief history of Boeing The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers. It is also one of the largest defense contractor in the world based on revenue. The company has been consistently ranked as one of the largest exporters in the United States by dollar value. Boeing was founded by William E. Boeing in Seattle, Washington, on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. Role of the US Government in resolving the dispute “President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the ultimate decision on a contract will be for the union workers to decide,” a White House spokesperson said in a statement. The strike began on September 13 after more than 30,000 machinists overwhelmingly rejected a tentative agreement that included 25 per cent wage increases over four years. Boeing later made improved offer but the union blasted it saying it was not negotiated. “We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement. Boeing is working to stop bleeding cash as it grapples with a safety crisis stemming from a near-catastrophic door plug blowout on one of its 737 Maxes at start the year and challenges in its other programs. The company earlier this month stated that it will report a deep loss and take charges of about $5 billion in its commercial and defense units. A ratified contract on Wednesday, when Boeing also reports full results, would be a victory for new CEO Kelly Ortberg, who took the company’s top job in August, tasked with reshaping the company. Further on October 11, he announced job cuts of 10 per cent of Boeing’s workforce and that the company will stop making 767s when orders are fulfilled in 2027. It is now to be seen how things evolve going forward, with market participants and investors looking forward to a final resolution to the dispute.

Boeing workers to vote on new proposal to potentially end strike

The largest union for Boeing employees on Tuesday called on newly appointed CEO Kelly Ortberg to make more direct contact with union officials to try to end a strike by some 33,000 US West Coast workers after the aerospace company cancelled their healthcare benefits.

In August, the former Rockwell Collins executive took over Boeing, which has been hit by several crises this year, including a walkout that has hobbled the production of its best-selling 737 MAX jets.

"It’s time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one," said Brian Bryant, president of the International Association of Machinists (IAM) and Aerospace Workers, which represents the striking workers.

"There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table," Bryant added in a statement.

The deadline for striking workers to tap into their Boeing health insurance plans was Sept. 30, which had been known for some time. The union advised its members Monday to look elsewhere for coverage.

Talks between Boeing and IAM's District 751, which is negotiating the contract, fell apart last week, with no sign of how soon they will resume.

"We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible," Boeing said in a statement.

Boeing workers in Seattle and Portland, Oregon, walked out for the first time since 2008 on Sept. 13, disrupting production of three of the company's most important commercial aeroplane models and adding financial strain to the planemaker.

The union is seeking a 40 per cent pay increase as well as the revival of a defined benefit pension that was taken away in the contract a decade ago.

Boeing made its best and final offer last week that would provide employees with a 30 per cent pay increase over four years and restore the performance bonus. However, a member survey by the union said this was not enough.

The largest union for Boeing employees on Tuesday called on newly appointed CEO Kelly Ortberg to make more direct contact with union officials to try to end a strike by some 33,000 US West Coast workers after the aerospace company cancelled their healthcare benefits.

The largest union for Boeing employees on Tuesday called on newly appointed CEO Kelly Ortberg to make more direct contact with union officials to try to end a strike by some 33,000 US West Coast workers after the aerospace company cancelled their healthcare benefits. In August, the former Rockwell Collins executive took over Boeing, which has been hit by several crises this year, including a walkout that has hobbled the production of its best-selling 737 MAX jets. "It’s time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one," said Brian Bryant, president of the International Association of Machinists (IAM) and Aerospace Workers, which represents the striking workers. "There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table," Bryant added in a statement. The deadline for striking workers to tap into their Boeing health insurance plans was Sept. 30, which had been known for some time. The union advised its members Monday to look elsewhere for coverage. Talks between Boeing and IAM's District 751, which is negotiating the contract, fell apart last week, with no sign of how soon they will resume. "We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible," Boeing said in a statement. Boeing workers in Seattle and Portland, Oregon, walked out for the first time since 2008 on Sept. 13, disrupting production of three of the company's most important commercial aeroplane models and adding financial strain to the planemaker. The union is seeking a 40 per cent pay increase as well as the revival of a defined benefit pension that was taken away in the contract a decade ago. Boeing made its best and final offer last week that would provide employees with a 30 per cent pay increase over four years and restore the performance bonus. However, a member survey by the union said this was not enough.

Striking Boeing workers urge CEO to "truly engage" after loss of health coverage

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