Boeing has confirmed ongoing discussions to buy back Spirit AeroSystems, a key move aimed at addressing significant quality issues within its supply chain. Spirit AeroSystems, known for being the exclusive manufacturer of B737 MAX fuselages, plays a crucial role as one of Boeing’s primary suppliers. The potential reacquisition comes in response to a series of quality challenges, including those directly impacting the B737 MAX series, highlighting the strategic importance of Spirit AeroSystems in Boeing’s manufacturing ecosystem.
“The reintegration of Boeing and Spirit AeroSystems’ manufacturing operations is seen as a pivotal step toward enhancing aviation safety, elevating quality standards, and better serving our customers, employees, and shareholders,” stated Boeing, following initial reports by the Wall Street Journal. While the Wichita-based supplier has acknowledged the ongoing negotiations, specifics of the talks remain under wraps.
Spirit AeroSystems, aside from its significant involvement with Boeing across various aircraft programs like the B767, B777, and B787, also engages in substantial contracts with Boeing’s competitor, Airbus. Notably, Airbus has shown interest in acquiring Spirit’s Belfast facility, renowned for its production of A220 wings, demonstrating the complex interdependencies within the aerospace manufacturing sector.
Boeing’s history with Spirit AeroSystems traces back to its sale to Onex Corp. for approximately USD1.2 billion in 2005. Since then, Spirit has transitioned to a publicly traded company with a diverse shareholder base, where no single entity commands a majority stake.
The discussions about reacquiring Spirit AeroSystems emerge amidst Boeing’s announcement to its suppliers about maintaining the current B737 MAX production rate at 38 units per month until at least June 2024, delaying a previously anticipated increase. This adjustment reflects Boeing’s challenges in achieving even the current production rate, compounded by FAA restrictions on further rate hikes until existing quality issues are resolved.
Boeing’s updated production schedule now targets an increase to 47 MAX units per month by January 2025, a delay from its earlier goal of August 2024. Furthermore, plans to escalate production from 47 to 52 units monthly have been pushed from February 2025 to June 2025, with aspirations to return to the pre-pandemic rate of 57 units per month now postponed from August 2025 to February 2026.
This potential reacquisition of Spirit AeroSystems by Boeing underscores the aerospace giant’s commitment to reinforcing its production quality and reliability, ensuring the integrity of its aircraft and meeting the expectations of its global customer base.
