Boeing plans to acquire Spirit AeroSystems

Boeing is considering buying out Spirit AeroSystems, a key supplier of components for its aircraft.

Here's What We Know

Spirit was originally spun off from Boeing Commercial Airplanes in 2005, and Boeing planned to keep it that way. However, according to the WSJ, after a series of safety and production problems with the Boeing 737 Max 9s and the scandalous cases of many loose bolts, the company is reconsidering its position.

No deal has been finalised yet, but Spirit has started talks with Boeing and is considering strategic options, including the sale of its operations in Ireland, which produces parts for Boeing's rival Airbus.

According to reports, the Spirit acquisition could help reduce the backlash against Boeing's outsourcing of production, but it could also increase control over the supplier. Also, the deal could be an important step for Spirit, which relies on revenue from Boeing.

A final decision has not yet been made, and both companies continue to dialogue and analyse strategic options.

Source: WSJ