Spirit Aerosystems To Be Carved Up Between Airbus And Boeing

(NewsSpace.com) – In January, a door plug blew out of a Boeing 737 MAX, further adding to the company’s woes. For years, Boeing has fallen under scrutiny for its manufacturing practices. It further came under the spotlight this year when two of its whistleblowers died months apart. Now, it’s back in the headlines, this time because of a multi-billion dollar deal that will see it purchase Spirit Aerosystems.

Spirit Aerosystems is the supplier of Boeing’s fuselage, including the door plug that blew out in what could have been a total catastrophe at the start of this year. Boeing formerly owned Spirit but sold it off nearly two decades ago. It’s now purchasing $4.7 billion of its stock. Airbus will pick up the company’s European-focused activities.

The move has already benefited all three companies, sending stocks soaring on the day the deal was announced. Boeing gained 2%, while Spirit saw an increase of 3.6% in its shares.

Spirit CEO Pat Shanahan released a statement saying that combining the company with Boeing “will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems.” Those systems have repeatedly been called into question, especially in light of whistleblower complaints that the aircraft are comprised of parts that don’t quite fit together or those with improperly drilled holes. Those who complained said they were subject to retaliatory measures.

The Department of Justice also has its eyes on Boeing, having settled with the company several years ago, only to bring that back up and say Boeing reneged on the deal. The company has been referred for criminal charges, though it’s not clear if they will face any.

In Europe, Airbus, another aerospace company, said it plans to take over the core activities of Spirit’s plants in the US, France, Morocco, and Ireland. Like Spirit and Boeing, Airbus saw its shares rise, too, by approximately 3.3%.

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