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Boeing in Talks to Acquire Spirit AeroSystems Amid Quality Concerns

The potential deal aims to address manufacturing issues linked to the 737 Max, nearly two decades after Boeing spun off the supplier.

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Airplane fuselages bound for Boeing's 737 Max production facility await shipment on rail sidings at their top supplier, Spirit AeroSystems Holdings, in Wichita, Kansas, U.S. December 17, 2019.
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Overview

  • Boeing is in discussions to acquire Spirit AeroSystems, aiming to address quality issues and strengthen aviation safety.
  • The potential acquisition comes 19 years after Boeing spun off Spirit, amidst scrutiny over manufacturing problems linked to the 737 Max.
  • Spirit AeroSystems, valued at about $3.3 billion, is also considering selling its operations in Ireland to Airbus.
  • The FAA has given Boeing 90 days to address systemic quality control issues, following a mid-air incident involving a 737 Max.
  • Shares of Spirit rose following the acquisition talks, while Boeing's shares fell, reflecting investor concerns.