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