Washington – Boeing, the aerospace giant, has finalized an agreement to acquire Spirit AeroSystems, a key supplier located in Wichita, Kansas. This deal marks a departure from Boeing’s previous strategy of outsourcing production processes and aims to provide the company with increased oversight and control over its manufacturing operations, which have faced scrutiny in recent times.

The acquisition, valued at $4.7 billion in an all-stock transaction, with a total of $8.3 billion including Spirit’s debt, comes at a crucial time for Boeing as it strives to rebuild trust with regulators, airlines, and the public after facing challenges with the 737 Max jet. Boeing CEO Dave Calhoun, who is stepping down from his role at the end of the year, expressed confidence in the deal’s benefits for various stakeholders, including the flying public and shareholders.

The decision to bring Spirit AeroSystems under Boeing’s umbrella is seen as a strategic move to integrate manufacturing and engineering capabilities, focusing on safety and quality systems. This move follows a turbulent period for Boeing, marked by production issues and concerns about quality control standards in the wake of incidents involving the 737 Max jets.

Federal investigators believe that a recent incident involving a door plug panel on a 737 Max 9 jet was linked to work done at Spirit’s factory in Wichita. This revelation, coupled with other quality control issues, has raised questions about the effectiveness of the union between Boeing and Spirit in addressing underlying problems in the manufacturing process.

While Boeing presented a plan to regulators to address quality control issues, some remain skeptical about the union with Spirit’s ability to address deep-rooted concerns in the 737 factory. Whistleblowers have raised alarms about ongoing challenges within the company, indicating that more work may be needed to ensure long-term improvements.

The deal between Boeing and Spirit, while complex due to Spirit’s supply arrangements with Airbus, underscores the changing dynamics in the aerospace industry. As Airbus and Spirit continue negotiations, all parties involved are committed to working towards a timely conclusion of the transaction process.

The acquisition of Spirit AeroSystems by Boeing marks a significant development in the aviation industry, with implications for both companies and the broader aerospace sector. As Boeing looks to strengthen its manufacturing operations and restore confidence in its products, the union with Spirit represents a strategic step towards addressing key challenges and enhancing quality standards.