Financier doubts add to Boeing's MAX headaches
BUSINESS NEWS JANUARY 24, 2020 / 9:13 AM / UPDATED 2 HOURS AGO
Laurence Frost, Conor Humphries, Tim Hepher
5 MIN READ
DUBLIN (Reuters) - To restore faith in the 737 MAX, Boeing needs to prove its flagship jet is not just airworthy but also a safe investment.
At a gathering in Dublin this week of the titans of the multibillion-dollar aircraft leasing industry, which finances half the world’s fleet, cracks were appearing in that effort.
Boeing said on Tuesday its troubled workhorse - grounded last March after two crashes in which 346 people died - should receive approval by mid-year from U.S regulators, paving the way for hundreds of jets to resume service later this year.
But in scores of high-stakes negotiations in the background, it is trying to convince banks, leasing firms and airlines that the investment case for thousands more of the jets - worth hundreds of billions of dollars - remains intact.
Airplane owners and investors said some lenders were already demanding higher collateral in deals on the MAX. One airline said financing for pre-delivery payments had dried up amid the uncertainty - though the market won’t be fully tested until closer to renewed deliveries.
https://www.reuters.com/article/us-boeing-737max-finance/financier-doubts-add-to-boeings-max-headaches-idUSKBN1ZN1P5