financetom
Business
financetom
/
Business
/
Boeing, Spirit agree $425 million deal to address supplier's issues
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Boeing, Spirit agree $425 million deal to address supplier's issues
Apr 23, 2024 10:47 PM

(Reuters) - Spirit AeroSystems ( SPR ) said Boeing ( BA ) would give it advance payments of $425 million and help it address issues like higher levels of inventory and lower cashflows after the U.S. aviation regulator capped the planemaker's 737 MAX production.

The agreement announced by Spirit on Tuesday comes amid talks between the two for Boeing ( BA ) to buy the fuselage supplier, a former subsidiary, and as the planemaker tries to get control of a sprawling crisis sparked by a mid-air panel blowout in January on a new Alaska Airlines 737 MAX 9.

Under the deal, Spirit will maintain a production rate that supports Boeing's ( BA ) contractual production demand.

Boeing ( BA ) said it continues "to work together with Spirit to improve quality, stabilize operations and support our customers."

Spirit, one of the industry's major manufacturers of large aircraft structures, has struggled with cash flow problems over the past few quarters and quality issues surrounding the fuselages it makes for Boeing's ( BA ) 737 narrowbody jets.

Spirit will also provide to Boeing ( BA ) specified financial information on a weekly basis.

The deal would also help navigate lower expected deliveries to Boeing ( BA ) due to the Federal Aviation Administration decision to cap the planemaker's 737 production rate at 38 planes per month and higher factory costs to maintain rate readiness and production quality.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Form 8.3 - American Axle & Manufacturing Holdings, Inc.
Form 8.3 - American Axle & Manufacturing Holdings, Inc.
Sep 24, 2025
BOSTON--(BUSINESS WIRE)--   FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the “Code”) 1. KEY INFORMATION (a) Full name of discloser: Weiss Asset Management LP (Investment Manager of Brookdale International Partners, L.P. and Brookdale Global Opportunity Fund) (b) Owner or controller of interests...
Form 8.3 - American Axle & Manufacturing Holdings, Inc.
Form 8.3 - American Axle & Manufacturing Holdings, Inc.
Sep 24, 2025
LONDON--(BUSINESS WIRE)--   FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the “Code”) 1. KEY INFORMATION (a) Full name of discloser:   Millennium International Management LP (b) Owner or controller of interests and short positions disclosed, if different from 1(a): The naming of...
Form 8.3 - Alphawave IP Group plc
Form 8.3 - Alphawave IP Group plc
Sep 24, 2025
LONDON--(BUSINESS WIRE)--   FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the “Code”) 1. KEY INFORMATION (a) Full name of discloser:   Millennium International Management LP (b) Owner or controller of interests and short positions disclosed, if different from 1(a): The naming of...
Form 8.3 - Dowlais Group plc
Form 8.3 - Dowlais Group plc
Sep 24, 2025
LONDON--(BUSINESS WIRE)--   FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the “Code”) 1. KEY INFORMATION (a) Full name of discloser:   Millennium International Management LP (b) Owner or controller of interests and short positions disclosed, if different from 1(a): The naming of...
Copyright 2023-2026 - www.financetom.com All Rights Reserved