Boeing’s first strike in 16 years halts 737 MAX production, threatening cash flow and risking junk credit status.

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Boeing is facing a crisis as 96% of its unionized workforce voted to strike, causing a halt in the production of critical aircraft models, including the 737 MAX. With approximately 30,000 workers walking off the job, this marks the company’s first major strike in 16 years. The disruption comes at a crucial time for Boeing, which is still recovering from previous production setbacks and supply chain issues.

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Moody’s has sounded the alarm, warning that Boeing’s credit rating could be downgraded to junk status if the strike drags on. A prolonged work stoppage could severely strain Boeing’s cash flow, impacting its ability to meet debt obligations. With production halted and financial risks mounting, Boeing is now navigating one of the most challenging periods in its history.

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As the strike continues, both workers and management face high stakes, with Boeing’s financial stability and its role in the global aerospace industry hanging in the balance.

Sources:

www.msn.com/en-us/money/markets/boeing-workers-on-strike-for-the-1st-time-in-16-years-after-96-vote-to-reject-contract/ar-AA1qwcn7

abc7chicago.com/boeing-strike-vote-results-2024-news/15296061/

www.benzinga.com/news/24/09/40861328/boeing-faces-junk-rating-as-moodys-warns-of-execution-risk-during-strike

www.bloomberg.com/news/articles/2024-09-13/boeing-at-risk-of-being-cut-to-junk-as-strike-hurts-production

www.reuters.com/business/aerospace-defense/boeing-us-factory-workers-strike-blow-planemaker-2024-09-13/


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