Boeing Strengthens 737 Production by Acquiring Struggling Supplier Spirit AeroSystems

Money | July 1, 2024, 2:03 a.m.

Boeing recently announced a $4.7 billion deal to acquire struggling supplier Spirit AeroSystems, a key producer of the fuselage for the 737 Max jet. This move comes in the wake of Boeing's production woes and quality control issues, including a recent incident where a door plug panel blew off an Alaska Airlines flight. The acquisition is intended to bring greater oversight and control of manufacturing operations back in-house, marking a departure from Boeing's past outsourcing strategies. The deal, valued at $8.3 billion including debt, is seen as a step towards rebuilding trust with regulators, airlines, and the flying public. The union between Boeing and Spirit aims to integrate manufacturing and engineering capabilities and improve safety and quality systems. Despite facing challenges due to its ties with Airbus, both Boeing and Spirit are optimistic about the potential benefits of this acquisition.