Boeing to Acquire Spirit AeroSystems in $4.7B Deal Amid Safety Scrutiny

Boeing announced a $4.7 billion acquisition of Spirit AeroSystems, aiming to enhance safety and quality amidst rising scrutiny from various stakeholders. The deal follows recent safety incidents and aims to integrate manufacturing and engineering capabilities. The acquisition marks a strategic shift from Boeing's previous outsourcing approach.

Boeing has revealed plans to acquire key supplier Spirit AeroSystems for $4.7 billion, a strategic move intended to bolster plane quality and safety amidst escalating scrutiny from Congress, airlines, and the Department of Justice.

Originally owned by Boeing, this acquisition would reverse a long-standing strategy of outsourcing critical work on its passenger jets. Spirit has faced considerable criticism due to production disruptions affecting popular Boeing jetliners, such as the 737s and 787s.

Boeing President and CEO Dave Calhoun stated, "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."

Concerns regarding safety intensified after the January 5th blowout of a panel on an Alaska Airlines 737 Max 9 over Oregon, prompting the FAA to increase oversight of both Boeing and Spirit. The incident, which caused no serious injuries, has placed Boeing under pressure from the US Justice Department to address criminal fraud charges related to past crashes of the 737 Max jetliners.

Boeing spun off Spirit in 2005, but recent quality issues, including fuselage panels and improperly drilled holes, have plagued the supplier. The recent Alaska Airlines incident further highlighted these ongoing quality control problems.

With Spirit AeroSystems currently experiencing a production slowdown, the acquisition aims to foster better integration of safety and quality systems. Spirit's CEO Patrick Shanahan, a former Boeing executive, asserts that the merger will advance manufacturing and engineering capabilities.

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