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Boeing Maneuvers to Buy Back Spirit AeroSystems

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Mia taylor

by Mia Taylor
Last updated: 6:45 PM ET, Fri March 1, 2024

Amid ongoing efforts to eliminate production flaws in its 737 Max, Boeing is attempting to buy back fuselage maker Spirit AeroSystems.

Boeing initially split from the fuselage maker back in 2005, according to CNBC, but continued to purchase its products. Last year alone, about 70 percent of Spirit’s revenue was from Boeing orders.

Outsourcing the production of Boeing Max parts however, may not have been the best move for the plane maker. Boeing CEO Dave Calhoun suggested as much when speaking with CNBC.

“Did it go too far? Yeah … probably did, but now it’s here and now I gotta deal with it,” Calhoun said.

Separately, the beleaguered 737 Max maker issued a statement on the proposed purchase of Spirit AeroSystems on Friday.

“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 in a statement on Friday, per CNBC. “Although there can be no assurance that we will be able to reach an agreement, we are committed to finding ways to continue to improve the safety and quality of the airplanes on which millions of people depend each and every day.”

Spirit also independently confirmed the two companies were discussing a purchase.

The proposed purchase may not be a moment too soon for Spirit, which has floundered financially. The last time the company recorded a profit was in 2019.

News of the potential deal also comes on the heels of the Alaska Airlines flight debacle with a Boeing 737 Max 9 plane, which involved a door blowing off during the flight. It was later found that bolts on the door that had blown off were not attached when the plane was provided to Alaska Airlines, per a National Transportation Safety Board report.

Boeing has been under increased scrutiny since them, particularly from the Federal Aviation Administration which grounded all of the company’s planes initially and has since been investigating the manufacturer’s production processes.

In the most recent turn of events, the FAA has issued an ultimatum, giving Boeing just 90 days to develop a safety plan addressing its quality control issues.

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