March 1, 2024
Updated 8 hours ago
Image source: Getty Images
Boeing is in talks to acquire Spirit Aerosystems, the supplier that has been involved in many of its recent production problems.
The company, a leading global supplier of aircraft parts, was spun off from Boeing in 2005 as part of a cost-cutting move.
The company continues to rely on Boeing for more than two-thirds of its business.
Boeing is under pressure over its production pipeline after part of one of its planes exploded in mid-air in January.
The U.S. government's investigation into the explosion found that at Boeing's Washington plant, screws securing the plate had been removed, apparently to repair damaged rivets, and were never reinstalled.
The part was manufactured by Spirit before being sent to Boeing for final assembly.
This week, the Federal Aviation Administration (FAA), which has been investigating Boeing since the incident, gave Boeing 90 days to develop a “comprehensive action plan” to improve its safety management systems.
Boeing has already worked closely with Spirit to address a number of quality issues that caused delays in aircraft deliveries and led to the appointment of a new CEO at Spirit last year.
In a statement to Portal on Friday, Boeing said: “We believe that the reintegration of Boeing and Spirit AeroSystems' manufacturing operations would further strengthen aviation safety, improve quality and serve the interests of our customers, employees and shareholders.”
Spirit shares rose more than 10% on Friday after reports of takeover talks, giving it a market value of more than $3.7 billion.
But Boeing shares fell more than 1% after the discussions were first reported in the Wall Street Journal.
Spirit, which the Journal said is also considering a sale of its Northern Ireland unit to Airbus, did not respond to the BBC's request for comment.
Spirit employs more than 20,600 people worldwide, including around 3,400 in Belfast and 1,120 in Prestwick.