Jul 1, 2024, 12:00 AM
Jul 1, 2024, 12:00 AM

Boeing to Acquire Spirit AeroSystems Amid Safety Concerns

Highlights
  • Boeing has announced its acquisition of Spirit AeroSystems for $4.7 billion to enhance its manufacturing capabilities.
  • The move comes as Boeing navigates ongoing manufacturing and safety challenges that have affected its production schedule.
  • This acquisition is seen as a strategic step to secure a more reliable supply chain for fuselage components.
Story

Boeing announced on July 1, 2024, that it will acquire fuselage manufacturer Spirit AeroSystems in an all-stock deal valued at approximately $4.7 billion. The agreement, which comes after a significant leadership shake-up at Boeing and a recent safety crisis involving a midflight door panel blowout, is intended to enhance safety and quality control within the company. Boeing will pay $37.25 per share in stock for Spirit, which closed at $32.87 per share prior to the announcement. The acquisition follows a troubling incident on January 5, when a fuselage panel blew out during an Alaska Airlines flight, raising alarms about Boeing's manufacturing processes. CEO Dave Calhoun, who plans to step down at the end of the year, emphasized that integrating Spirit into Boeing's operations will align production systems and improve overall quality. He described the move as a significant step in reinforcing Boeing's commitment to safety and quality. In a related development, Airbus has reached an agreement with Spirit, which will see the European manufacturer compensated $559 million for acquiring manufacturing lines dedicated to Airbus aircraft, paying just $1 for the assets. This transaction highlights the competitive landscape in the aerospace industry as companies navigate challenges related to safety and production. The ongoing safety crisis has not only impacted Boeing's reputation but has also slowed the delivery of new aircraft to airlines, resulting in financial repercussions for both Boeing and Spirit AeroSystems.

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