Boeing seeks up to $35bn as costly strike drags on

Striking Boeing workers joined a protest in Seattle on Tuesday. (Getty Images)

Seattle (USA), October 16 — Boeing says it aims to raise up to $35bn (£26.8bn) from investors and banks as a costly strike by thousands of its workers enters its second month.

Also on Tuesday, the union representing more than 30,000 of the aviation giant's workers held a rally in the city of Seattle.

The company is moving ahead with plans to layoff around 17,000 workers, with the first redundancy notices expected to be issued in mid-November.

Talks to end the walkout collapsed last week as the firm withdrew an offer that included a 30% pay rise over four years.

Boeing plans to raise up to $25bn in stock and debt offerings and said it has reached a deal with major banks to borrow as much much as $10bn.

"These are two prudent steps to support the company’s access to liquidity," Boeing said in a statement.

The moves to raise funding come less than a week after Boeing announced that it will cut its workforce by a tenth and push back deliveries of its 777X plane.

Major credit ratings agencies had previously warned that the strike could lead to downgrades, which would make it more expensive for the company to borrow money.

Meanwhile, top Washington state Congressional Democrats have called on Boeing and the union to "redouble... efforts to reach a mutually beneficial resolution."