Boeing's Lifeline: Spirit AeroSystems' Financial Resurgence Strategy

Spirit AeroSystems and Boeing are nearing a funding agreement to support the struggling aerospace supplier. Spirit, facing financial strain and production challenges, expects significant cash outflow. Boeing aims to revive its supply chain, while Spirit also considers aid from Airbus and potential asset sales.

Spirit AeroSystems and Boeing are close to securing a financial agreement that could offer much-needed relief to the embattled aerospace supplier, according to an industry insider. The potential deal aims at stabilizing Spirit's finances amid ongoing production hurdles and cash flow issues.

Spirit recently flagged a significant liquidity warning and anticipates burning through $450 million to $500 million in the coming months. With Boeing looking to acquire its former subsidiary, the aerospace giant seeks to restore its supply chain and resume full production after recent strikes.

Additionally, Spirit AeroSystems is exploring further funding options, including possible advances from Airbus, as delays in fuselage delivery threaten A350 schedules. The company is also contemplating asset sales to strengthen its financial position.

(With inputs from agencies.)