You are currently viewing Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier

The multibillion-dollar deal will reverse a decision the plane maker made two decades ago to outsource production of key parts to independent suppliers.

Boeing said on Monday that it had agreed to buy a major supplier, Spirit AeroSystems, ending a nearly two-decade experiment in outsourcing production of major components of its commercial planes, including the body of the 737 Max and parts of the 767, 777 and 787.

In buying Spirit, Boeing hopes to stem quality problems that have plagued the supplier in recent years. While it already has significant influence over Spirit, Boeing will more easily be able to monitor and change production practices by owning the business. Boeing has taken internal steps to improve quality, too, after a harrowing incident in which a panel blew out of one of its planes on a flight in January.

“By reintegrating Spirit,” Boeing’s chief executive, Dave Calhoun, said in a statement, the company “can

Keep reading this article on Andrew Ross Sorkin - DealBook Blog New York Times.

Leave a Reply