Boeing is in the process of acquiring Spirit AeroSystems, a manufacturer of parts for its 737 and 787 planes, in a $4.7 billion all-stock deal. This acquisition is aimed at enhancing aircraft production and bringing Spirit Aero back under Boeing’s umbrella. The deal comes after months of negotiations between the two aerospace companies and is seen as an effort to address Boeing’s ongoing safety crisis.
Boeing’s stock has fallen more than 27% this year due to 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. As part of the acquisition, Spirit Aero will sell its 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. Officials found that Boeing violated a deferred prosecution agreement related to these crashes. Details of both deals are expected to be revealed soon.
