Boeing is infusing capital into Spirit AeroSystems, in a strategic move to rescue one of its primary suppliers from financial turmoil. Spirit, headquartered in Wichita, Kansas, is the manufacturer of the fuselages for the 737 MAX and 787 Dreamliner. This development follows the replacement of Tom Gentile, Spirit’s CEO, with Pat Shanahan, a high-ranking Boeing executive, after Gentile’s removal earlier this month.
The primary objective is to stabilize Spirit’s production system and address the quality issues that have plagued the 737 and 787 programs. This initiative also aims to position Spirit favorably for Boeing’s anticipated production rate increases. Among the recent quality problems involving Spirit was the discovery of improperly drilled holes in the fuselage of the 737 MAX, resulting in extensive inspections, repairs, and further delays in aircraft deliveries.
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Key points in the memorandum include Boeing providing financing for tools required in the production of the 737 and 787, with an immediate investment of around $100 million. The MoA also establishes price reductions for the 737 program, effective from the first delivery in 2026 to the final delivery in June 2033, amounting to approximately $265 million in discounts.
Furthermore, price increases have been set for the 787 program, affecting approximately 450 units (from aircraft number 1164 to 1605). This entails a total increase of $455 million in payments over the next two years.
In an official statement, Spirit emphasized that this agreement would foster “enhanced collaboration to achieve higher quality and secure future deliveries.” Shanahan highlighted that “Boeing and Spirit will continue working together to address operational challenges.” Boeing, in turn, characterized this agreement as mutually beneficial, stating that “this agreement with our supplier will enhance the operational stability of our production system.”
It is crucial to emphasize that this memorandum effectively resolves all liability actions among the involved parties.
