Boeing said the purchase will improve plane quality and safety amid increasing scrutiny by Congress, airlines and the Department of Justice.
The total transaction value is approximately $8.3 billion, including Spirit's last reported net debt. Boeing announced plans to acquire key supplier Spirit Aero Systems for $4.7 billion, a move that it says will improve plane quality and safety amid increasing scrutiny by Congress, airlines and the Department of Justice.
Concerns about safety came to a head after the Jan. 5 blowout of a panel on an Alaska Airlines 737 Max 9 at 16,000 feet over Oregon. The Federal Aviation Administration soon after announced increased oversight of Boeing and Spirit, which supplied the fuselage for the plane. The Justice Department said in a May court filing that Boeing violated terms of a 2021 settlement allowing the company to avoid prosecution for actions leading up to the crashes in Ethiopia and Indonesia, which killed 346 people.
Spirit removed its CEO in October and replaced him with Patrick Shanahan, a former Boeing executive who served as acting defense secretary in the Trump administration. "Bringing Spirit and Boeing together will enable greater integration of both companies' manufacturing and engineering capabilities, including safety and quality systems," Shanahan said.
Spirit Aero Boeing Investor Relations Boeing Spirit Under Pressure On Plane Safety Boeing Is Buying Stressed Supplier Spirit For $4. 15015311
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