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Boeing in talks to reacquire key supplier

Spirit AeroSystems builds fuselages for troubled 737 Max jetliners

By David Koenig, Associated Press
Published: March 1, 2024, 7:26pm

DALLAS — Boeing said Friday that it is in “preliminary discussions” to buy Spirit AeroSystems, which builds fuselages for Boeing 737 Max jetliners, including the one that suffered a door-panel blowout on an Alaska Airlines flight in January.

Boeing used to own Spirit, and it said bringing the manufacturer back into the Boeing fold would improve plane quality and safety, which has come under increasing scrutiny by regulators, Congress and airlines.

The announcement confirmed media reports that the two companies were talking about a deal. Reaching one could help Boeing respond to critics who have blamed the company’s manufacturing problems in large part on outsourcing key work to Spirit and other suppliers.

Boeing said it has been working with Spirit to improve the quality of the planes they build and that the collaboration “has resulted in preliminary discussions about making Spirit AeroSystems a part of Boeing again.”

“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.

Spirit AeroSystems also confirmed the talks, while cautioning that it could not discuss its terms.

Shares of Spirit rose more than 15 percent by the end of regular trading.

Boeing spun off Spirit in 2005 as part of a strategy to outsource the supply chain for its commercial planes. In recent years, quality problems have mounted at Spirit, including fuselage panels that didn’t fit together precisely enough and holes that were improperly drilled. Those and other flaws held up deliveries of Boeing 737s and 787s.

Spirit removed its CEO in October and replaced him with Patrick Shanahan, a former Boeing executive who served as acting defense secretary in the Trump administration.

Scrutiny of Spirit — which is not related to Spirit Airlines — grew even stronger after an emergency door plug that it made blew off an Alaska Airlines 737 Max 9 over Oregon on Jan. 5.

CEO David Calhoun has long defended Boeing’s outsourcing, but his tone changed in recent weeks.

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