Boeing Co. is in discussions to acquire Spirit AeroSystems Holdings Inc., aiming to regain control of its former aerostructures unit and the main aerostructure supplier, that's getting attention involving quality issues affecting the 737 Max aircraft.
Spirit AeroSystems Holdings, has also confirmed that it is currently engaged in discussions with Boeing about a possible acquisition of the Company by Boeing.
No assurances can be given that a definitive agreement will be entered into, that any transaction will be consummated, or the timing, terms or conditions of any such transaction, as per Spirit AeroSystems.
“We believe that the reintegration of Boeing and Spirit AeroSystems’ manufacturing operations would further strengthen aviation safety, improve quality and serve the interests of our customers, employees and shareholders,” Boeing said Friday in a statement.
Boeing is Spirit’s largest customer, accounting for 64% of the supplier’s revenue last year. Airbus was its second-largest with 19%. Spirit assembles most of the 737 Max plane’s fuselage before shipping them by rail to Boeing’s factory in Renton, Washington, for final assembly of the aircraft.
Buying back Spirit AeroSystems , from which Boeing separated in the year 2005, would mark an important step by the US planemaker to stabilize its supply chain after a series of damaging production faults.
After Spirit was split off from Boeing, the company was sold to private equity investors, ending almost 80 years within the US planemaker’s fold. The move was part of Boeing’s drive to shed assets and ultimately become more profitable.
Scenario has changed since then, as both Boeing and Spirit Aero Systems are at the receiving ends for the poor quality control of their products, responsible for aviation incidents.
Worth noting, among the incidents, latest occurred early in January when a Boeing 737 Max 9 variant lost a door-plug mid-flight. It's being said ,while Spirit built the fuselage of the aircraft in question, Boeing has said ultimate responsibility for safety and the right production protocols reside with the planemaker.
In the year 2023, Spirit AeroSystems was responsible for two quality lapses, though didn't affect the airworthiness of a particular aircraft directly,were highlighted in the media, It transferred B737Max airframes with first improperly installed fittings on the vertical stabiliser, then four months later incorrectly drilled holes in the rear pressure bulkhead.
Spirit AeroSystems Holdings said in a statement,
The Spirit Board of Directors and management team are committed to enhancing shareholder value and regularly review the Company's opportunities to further this objective.
Spirit does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required.
Industry experts believe, selling its Wichita operations to Boeing would prove to be a breather for the troubled Spirit, and give the planemaker a chance to streamline the issues, those affecting its key supplier.
Although Boeing is Spirit’s biggest customer, the company is also an important supplier to European rival Airbus. It builds wings for Airbus A220 jets in Belfast and also makes parts for the A350 and A320.
Though not confirmed via an official medium, it's being said that Spirit is separately exploring the sale of a business in Northern Ireland that makes wings for Airbus SE.
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