Boeing Co. continues an effort to acquire Spirit AeroSystems, but until a deal is completed the jet builder is advancing payments to the supplier, to resolve ongoing complications in their working relationship. According to Spirit Aero, Boeing has advanced $425 million to the Wichita-based manufacturer of aircraft structures, and is offering help to manage higher levels of inventory and reduced cash flows as production rates for the 737 MAX lag.
With Boeing’s cooperation, Spirit will keep up the production rate indicated by the terms of its supply contract with Boeing.
Spirit AeroSystems manufactures fuselage structures for the Boeing 737 MAX and 787 Dreamliner series, and aerostructures for other jet builders too, including Airbus and Bombardier.
Since mid-January, Boeing has reduced its completion rate for the narrow-body 737 MAX, following an in-flight that damaged an Alaska Airlines jet. That brought the Federal Aviation Administration into Boeing’s Renton, Wash., assembly operation, and together the FAA and Boeing continue to evaluate processes there. All the while, the reduced rate of aircraft assembly has stressed Boeing’s suppliers and customers.
Negotiations for Boeing to acquire Spirit Aero are ongoing, but complicated by the latter’s supplier relationship with Airbus.
