Airlines

Boeing Invests $100M Into Spirit AeroSystems to Fix Supply Chain Issues

Boeing Offers 25% Pay Increase & Promise to Build Next Plane in Seattle

Spirit AeroSystems of Wichita, Kansas, and Boeing have come to a comprehensive financial deal that will provide millions of dollars in help for the financially struggling supplier.

Spirit’s financial statement states that in exchange for Boeing providing a $100 million capital investment, Spirit will have to show reductions in quality defects, increase support staffing, work with Boeing to buffer parts supplies, “including two weeks’ worth of finished goods for 737,” and provide detailed plans for outsourcing to any new subcontractors.

For the past few quarters, Spirit, one of the industry’s leading producers of big airplane structures, has suffered from cash flow troubles and quality concerns related to the fuselages it builds for Boeing’s 737 narrowbody flights.

Spirit will receive a premium for near-term deliveries of the front fuselage and other parts it manufactures for the 787 Dreamliner under the terms of the agreement unveiled on Wednesday, while the price of 737 units will drop from 2026 to 2033.

Spirit is predicted to report an increase in revenues of $455 million between 2023 and 2025 as a result. Spirit’s revenue is expected to drop by $265 million between 2026 and 2033.

Boeing agreed to extend the repayment of a $180 million financing until 2027 instead of 2025. Additionally, during the next ten days, the aircraft manufacturer will contribute an additional $100 million towards the purchase of tooling required for potential increases in the manufacturing rate of the 737 and 787.

Source

Airlines

Sanctions & Engine Issues Ground Half of Russia’s A320neo fleet

Russia’s aviation sector, already strained by Western sanctions, faces another setback as nearly half of its Airbus A320neo family aircraft are grounded due to unresolved engine issues.

This development highlights the growing challenges for russia commercial aircraft in maintaining their fleets under the weight of global restrictions and limited access to spare parts.

Out of the 66 Airbus A320neo and A321neo jets in Russia, 34 are now out of service, according to the Kommersant business newspaper. These planes are powered by engines manufactured by Pratt & Whitney, a subsidiary of RTX Corporation.

DAMAC Air: Dubai’s New Luxury Airline Offers Free Flights for Registration

The engines are affected by a previously identified defect in the metal used for certain parts, prompting accelerated inspections and maintenance.

Sanctions have compounded the issue, blocking the supply of essential components from major manufacturers like Boeing and Airbus. Without proper maintenance, experts warn that these aircraft may face decommissioning as early as 2026.

COMAC Unveils Plans for the C929 to Rival Airbus and Boeing

Airlines like S7, which operates a significant portion of these grounded jets, plan to conserve the engines for future use during peak travel seasons. However, reports suggest that over 20 of S7’s Airbus planes have engines that have already reached the end of their operational lifespan. Recently, russia seeks assistance from kazakhstan’s airlines to bolster its domestic flights.

While some A320neo and A321neo planes in Russia are equipped with French-made LEAP engines, which are seen as less problematic, the challenges remain daunting.

The situation underscores the long-term impact of sanctions on Russia’s aviation sector and the increasing difficulties in keeping its modern fleets operational.