In a move to improve its safety reputation, Boeing has announced plans to acquire Spirit Aerosystems, its major supplier and manufacturing partner. The all-stock deal, valued at $4.7 billion, aims to recombine the companies and enhance safety measures. Boeing President and CEO Dave Calhoun expressed confidence in the deal, stating, “We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly.”
Spirit AeroSystems manufactures key components for Boeing aircraft, including the fuselages for the 737 Max. However, as part of the acquisition, Spirit will be broken up, with its activities related to Airbus being sold to the European planemaker for a nominal $1. Airbus will receive $559 million from Spirit as compensation for the transition.
The acquisition comes after Spirit faced its own quality control issues, which impacted Boeing’s output and reputation. In a recent incident involving a door plug blowout on an Alaska Airways 737 Max, Boeing employees failed to properly document maintenance work, leading to safety concerns. Whistleblowers have also raised alarms about wider safety gaps in Boeing planes.
This development adds to Boeing’s ongoing challenges, as the company is nearing an agreement with the US Justice Department that may include a corporate monitor and fines in exchange for a guilty plea to criminal charges. Families of victims of previous 737 Max crashes have criticized the potential agreement as a “sweetheart deal.”
This story contains crucial updates and contributions from CNN reporters Chris Isidore, Diksha Madhok, and Olesya Dmitracova.
