Boeing is set to buy back Spirit AeroSystems, a manufacturer of parts for its 737 and 787 planes, in a $4.7 billion all-stock deal. This acquisition is expected to bring Spirit Aero back under Boeing’s umbrella and is aimed at enhancing aircraft production.
The deal follows months of negotiations between the two aerospace companies and is seen as a move to address Boeing’s ongoing safety crisis. Boeing’s stock has fallen more than 27% this year due to a series of manufacturing issues that have impacted the aviation industry. Instances of manufacturing problems, such as loose bolts found during safety reviews of Boeing 737 Max 9 planes owned by United Airlines and Alaska Airlines, have led to increased scrutiny of Boeing’s manufacturing process.
Spirit Aero was previously a subsidiary of Boeing before being spun off in 2005. The deal to bring Spirit Aero back under Boeing’s ownership is part of an effort to improve aircraft production. Additionally, the deal involves selling Spirit Aero’s Europe-focused operations to Airbus, a competitor of Boeing.
While the acquisition of Spirit Aero is being finalized, Boeing is also in discussions with the Justice Department about a plea deal to resolve potential fraud charges related to two fatal crashes that occurred in 2018 and 2019. Details of the plea deal are expected to be revealed soon along with the outcome of the acquisition deal with Spirit Aero.