Boeing is reportedly close to finalizing a deal to acquire its troubled supplier, Spirit AeroSystems, according to sources familiar with the matter. The negotiations have been ongoing for months, with Boeing seeking to buy back the Wichita, Kansas-based supplier it spun off in 2005. The move is aimed at stabilizing a key part of the supply chain for Boeing's strongest-selling jet, the 737 MAX, following a mid-air blowout on a new 737 MAX in January.
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The talks have been complicated by Spirit's work for Airbus, with the European group threatening to block any deal that involved Boeing building parts for its newest models. However, Boeing and Airbus have broadly succeeded in dividing Spirit's programs into work that Boeing will take back, along with work that Airbus will take. This has allowed the negotiations to progress, with sources saying that a deal could be announced within days or weeks.
Boeing has said it is buying back Spirit to secure safety and quality in its plants, after blaming Spirit for sending incomplete or faulty parts to its factories. However, several industry sources have also noted that the Jan. 5 blowout rekindled Boeing's earlier interest in buying back the company due to concerns over Spirit's financial and industrial resilience as well as the need to invest in digital production systems.
In April, Airbus CEO Guillaume Faury told Reuters that it was "not unlikely" that Airbus would take over Spirit's operations for the A350, its premier long-haul jet, and the small A220. This suggests that Airbus is willing to cooperate with Boeing in the acquisition of Spirit AeroSystems. The potential acquisition of Spirit AeroSystems by Boeing would be a significant development in the aerospace industry. It would allow Boeing to regain control of a key supplier and ensure the quality and safety of its products. However, it remains to be seen how the deal will be structured and how it will affect the relationship between Boeing and Airbus.