Boeing is currently in discussions to purchase Spirit AeroSystems, a key supplier that was previously a part of Boeing until it was sold in 2005. Spirit AeroSystems was involved in an incident where a door plug blew out on an Alaska Airlines flight. News of these negotiations was first reported by the Wall Street Journal and Seattle Times on Friday, which caused Spirit’s shares to rise by 15%. However, Spirit’s shares had previously dropped by 10% due to the Alaska Air incident, from early January to Thursday’s close.

In 2005, they sold Spirit and received $900 million in cash for the sale. Spirit AeroSystems, based in Wichita, Kansas, is responsible for making major parts of several Boeing models. The production activities will additionally boost aviation safety, enhance quality, and cater to the needs of our customers, employees, and shareholders. Although we cannot guarantee that we will be able to reach an agreement, we are determined to find ways to continue to improve the safety and quality of the airplanes that millions of people rely on every day.

They have been facing several quality control issues with Spirit, a key supplier. These problems have become quite severe and are adversely affecting Boeing’s production. To address this, They have agreed to provide Spirit with additional funding to improve its quality and reliability. They paid an extra $60 million to Spirit last year and will pay $395 million from 2024 to 2025. These payments indicate Boeing’s motivation to resolve the issues at Spirit as it is crucial for Boeing’s profitability. Unless Spirit can resolve its problems, it cannot achieve profitability.