Boeing in Talks to Buy Back Fuselage Maker Spirit Aerosystems

Boeing is reportedly in discussions to repurchase Spirit Aerosystems, the supplier of fuselages for Boeing’s 737 Max aircraft. This move comes as both companies work to address manufacturing flaws on the best-selling plane. While shares of Spirit saw a 13% surge, Boeing’s shares experienced a 1% drop. Spirit Aerosystems, valued at $3.3 billion, generated 70% of its revenue from Boeing last year and a quarter from Airbus, Boeing’s main competitor.

The potential repurchase was first reported by the Wall Street Journal. However, both Boeing and Spirit Aerosystems declined to comment on the matter.

It is worth mentioning that Boeing spun off operations in Kansas and Oklahoma in 2005, which eventually became Spirit Aerosystems. Notably, Boeing has faced numerous issues with its 737 Max, including the grounding of all planes by the Federal Aviation Administration after an Alaska Airlines flight experienced an incident. This prompted investigations into the aircraft and Boeing’s production processes.

Among the flaws found on the Boeing 737 Max were production problems and quality issues with the fuselages made by Spirit, such as incorrectly drilled holes and incorrect spacing on certain components. These problems have caused delays in delivering new jets to airlines.

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