According to multiple reports, Boeing is in talks to acquire Spirit AeroSystems—its key supplier of 737 MAX fuselages, which recently came under fire following a midflight door panel blowout in January.
Sources say the move to bring Spirit AeroSystems under its arm could help Boeing with greater oversight of its manufacturing process.
As first reported by the Wall Street Journal, Spirit AeroSystems hired financial advisors to explore strategic options and held discussions about a potential repurchase by its former owner, Boeing. The supplier is also discussing selling operations in Ireland that make parts for European planemaker and Boeing rival Airbus, the Journal reported.
Neither Boeing nor Spirit AeroSystems has commented on the deal. As of Friday, shares of Spirit AeroSystems surged more than 13%, while Boeing fell more than 1%.
Boeing continues to face a multitude of legal and regulatory challenges including a potential criminal investigation over the door plug failure and a 90-day deadline to construct a plan to address its production issues.
Boeing’s Spirit Acquisition: A Glimmer of Hope or a Smoke Screen?
Hope, but expensive hope. I see this as the reversal of what was always a bad decision, but gosh it will cost a lot to undo the sins of the past at this point. If it’s possible at all.
Boeing needs lightning in a jar. I made what I have developing an assembly line and CQI plan at a manufacturing facility in the 1990s, and I am convicted these problems won’t resolve until a single SME hauls representatives from the workforce together into a (huge) room to create a continuous QA plan to address inspections down to the last nut, bolt and rivet that continues even as throttles are advanced on the first takeoff roll. My CQI plan stated “The status of any system that has undergone any change, including the passage of time, cannot be definitively known”. It’s was the opposite of a staged “check off” inspection plan. Boeing will require a Lawrence Miller Barbarian to accomplish such a feat, but today they are ruled by the administrators. A Spirit repurchase is nothing more than a profiteering distraction from what must be done. If the acquisition devolves into a Roman feast for investment bankers and senior management concern for the survivability of this “too big to fail” American icon would demand careful consideration.
Spirit stock surged on the Boeing announcement. Leaving me wondering how much Spirit stock Boeing executives have recently purchased.
Boeing has to present a comprehensive action plan by the end of May to resolve what the FAA refers to as “systemic quality-control issues.” The Spirit re-acquisition, which may be seen as part of the plan, adds further complexity. This move also affects Airbus, Embraer, Bombardier, and Mitsubishi, further muddying the waters. More shall be revealed.
Boeing’s potential reacquisition of Spirit AeroSystems could be a masterstroke, granting them greater control over their supply chain and potentially leading to significant cost savings in the long run. Boeing boys and girls got up early in the morning.
When every supplier in the chain makes 10%, the final product is pretty expensive. I study the math in the 1990’s that Boeing used to justify selling off assets and could not figure it out; it didn’t make sense. Maybe after 20 years they figure out on their own maybe the math wasn’t so great after all.
Boeing is a five alarm fire and they’re trying to put out the fire using buckets with holes in them. Boeing is up a creek without a paddle and they know it. You can’t do what they have done over decades without the chickens eventually coming home to roost. In the end the stockholders and upper management got what they wanted. Everyone else is left holding the bag. No one will be held accountable. That’s how it’s supposed to work.
Kinda slow this weekend, Tom. Let’s spice it up, you go first!
There is no debate anymore Raf. Everyone sees the effects. DEI is dead except for those people (politicians) who like to spend other peoples (taxpayer’s) money. The evidence is pouring out on a daily basis. It was a scam right from the get go. A lot of people bought into it until they saw its true effects. They started to lose money. Imagine that.😱🤦♂️ It was such a con. 😆🥳
That’s quite the collection of metaphones. (Not disagreeing though.)
*metaphors
Boeing should worry more about the Billion dollar Door Plug lawsuit…..
As an FAA volunteer speaker interested in aviation safety many years ago, I had concerns about the use of composite materials in aircraft. My experience included working on prototype development for the Navy and Air Force using advanced, or “exotic,” thermoplastics, which were formed through machining or injection molding. This experience gave me valuable insights into the unique properties and limitations of these materials.
The Airbus A300 AA587 accident, a tragic event, involved a complex interplay of factors, including pilot error. The accident also raised questions about the design of the composite vertical stabilizer, particularly at the attachment point to the fuselage. The plastic composite attachment failed. This aspect, in combination with the limited side load factor of 1.5 g, contributed to its failure.
Following the A300 accident where 260 people were killed, Airbus implemented significant improvements in its use of composites, including design modifications and more rigorous testing procedures. This case underlines the importance of continuous evaluation and improvement in aircraft design to ensure safety. Airbus moved on to become Boeing’s equal.
The Boeing 737 MAX situation presents a different set of challenges, and I am not comfortable drawing direct comparisons to the A300 accident. However, it is clear that Boeing has faced similar significant challenges in recent years. Anticipating an effective and sincere overhaul of the entity, I believe that Boeing, now being under a microscope and under pressure, will come out successfully.