Boeing in Talks to Acquire Spirit AeroSystems

Boeing has officially confirmed ongoing discussions regarding the potential acquisition of Spirit AeroSystems.

The collaboration aims to strengthen the manufacturing operations of both companies, with Boeing expressing confidence that the reintegration could enhance aviation safety and overall product quality.

The statement issued by Boeing highlighted the commitment to finding solutions that improve safety and quality, emphasizing the mutual benefits for customers, employees, and shareholders. However, the aerospace giant also acknowledged that there is no guarantee of reaching a final agreement.

No definitive agreement has been reached at this stage, and Spirit AeroSystems cautioned that there is no certainty about the consummation of any transaction or the terms and conditions that might be involved.

The news comes amid growing concerns about manufacturing flaws in Boeing's 737 Max jets. Spirit AeroSystems is the manufacturer responsible for crafting fuselages for Boeing's 737 Max planes. Boeing and Spirit AeroSystems are reportedly racing to address the manufacturing flaws that have led to a temporary grounding of 737 Max planes by the Federal Aviation Administration (FAA).

Boeing had spun off operations in Kansas and Oklahoma in 2005, which eventually became Spirit AeroSystems. Approximately 70% of Spirit's revenue last year was derived from Boeing, with an additional quarter coming from manufacturing parts for Boeing's main competitor, Airbus.

The recent incident involving a section of a Boeing 737 Max 9 plane during an Alaska Airlines flight prompted the FAA to ground the planes temporarily in January. Investigations are ongoing, with a preliminary report from the National Transportation Safety Board revealing flaws in the Max's production process.

Boeing has previously disclosed various production problems and quality flaws in the fuselages produced by Spirit AeroSystems, including incorrectly drilled holes and spacing issues, contributing to delays in jet deliveries to airlines.