Wichita, Kansas – Boeing Co. announced plans to acquire Spirit AeroSystems in an all-stock deal valued at $8.3 billion. The acquisition aims to improve safety and quality control within the aerospace company. Spirit AeroSystems, based in Wichita, Kansas, is known for producing fuselages for the 737 and other parts for Boeing’s aircraft.

The move comes after a series of production problems with Boeing planes, including a fuselage panel blowing out midair on a Boeing 737 Max 9 operated by Alaska Airlines. This incident raised concerns about the quality and safety of Boeing’s aircraft and prompted discussions about enhancing manufacturing processes. Spirit AeroSystems, a key supplier for Boeing, accounted for about 70% of the company’s revenue last year.

Boeing’s CEO, Dave Calhoun, emphasized the importance of aligning production systems and workforces by bringing Spirit AeroSystems in-house. The acquisition is seen as a strategic decision to strengthen quality assurance and ensure that Boeing remains a reliable global aerospace company.

Calhoun expressed optimism about the deal’s potential impact on Boeing’s operations. He anticipates that the acquisition will be finalized by mid-2025, pending regulatory approval and approval from Spirit’s shareholders. Additionally, Spirit’s CEO, Pat Shanahan, is considered a potential successor to Calhoun.

In response to the acquisition, Airbus reached an agreement with Spirit to acquire manufacturing lines dedicated to Airbus planes for $559 million. This agreement includes operations in Belfast, Northern Ireland, where components for Airbus aircraft are produced.

The Federal Aviation Administration (FAA) has expressed concerns about Boeing’s production lines and has imposed restrictions on production expansion until quality standards are met. Boeing’s financial performance has been impacted by the recent production challenges, with the company facing a cash burn of $8 billion in the first half of 2024.

Despite the setbacks, Boeing remains committed to improving quality control measures. The company has implemented new processes to ensure that fuselages are free of defects before moving forward with production, aiming to reduce errors and improve overall safety standards in aircraft manufacturing.