Sunday, July 14, 2024
HomeEconomyBoeing is in talks to acquire Spirit AeroSystems

Boeing is in talks to acquire Spirit AeroSystems


Related stories

Image source, Getty Images

Boeing is in talks to acquire Spirit Aerosystems, a supplier involved in several recent manufacturing issues.

The company, a major global supplier of aero parts, was spun off from Boeing in 2005 as part of a cost-cutting drive.

It continues to rely on Boeing for more than two-thirds of its business.

Boeing is under pressure over its manufacturing pipeline after a piece of one of its planes exploded in mid-air last January.

A U.S. government review of the explosion found that bolts intended to secure the panel were removed at Boeing's plant in Washington, apparently to repair damaged bolts, and were never reinstalled.

The part was manufactured by Spirit, before being sent to Boeing for final assembly.

This week, the Federal Aviation Administration (FAA), which has been examining Boeing since the accident, gave Boeing 90 days to develop a “comprehensive action plan” to improve its safety management systems.

Boeing is already working closely with Spirit to address a series of quality issues, which caused aircraft delivery delays and led to the appointment of a new Spirit CEO last year.

“We believe that recombining the manufacturing operations of Boeing and Spirit AeroSystems will further enhance aviation safety, improve quality, and serve the interests of our customers, employees, and shareholders,” Boeing said in a statement on Friday to Reuters news agency.

After reports of takeover talks, Spirit shares jumped more than 10% on Friday, giving it a market value of more than $3.7 billion.

Spirit, which the newspaper said was also considering selling its Northern Ireland unit to Airbus, did not respond to a BBC request for comment.

Spirit employs more than 20,600 people worldwide, including around 3,400 in Belfast and 1,120 in Prestwick.

"Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast."

Latest stories