At Boeing’s 737 Max production facility, airplane fuselages from Spirit AeroSystems Holdings Inc are currently in storage in Wichita, Kansas, U.S. as of December 17, 2019. The two companies are in discussions for Boeing to repurchase Spirit AeroSystems, the manufacturer of fuselages for the 737 Max jets. This comes as both companies work to address production issues with the popular aircraft.
Following this news, Spirit’s stock rose by 15% while Boeing’s stock experienced a nearly 2% decline. With a market capitalization of $3.8 billion as of Friday’s close, Spirit AeroSystems has a significant presence in the aerospace industry.
In 2005, Boeing spun off its operations in Kansas and Oklahoma, which eventually became Spirit AeroSystems. Last year, 70% of Spirit’s revenue came from Boeing, with a quarter of its revenue coming from manufacturing parts for Airbus, Boeing’s main competitor. Airbus has not commented on the ongoing deal talks.
The potential reintegration of Boeing and Spirit AeroSystems’ manufacturing operations is seen as a strategic move that could have significant implications for the aerospace industry.
2024-03-01 17:33:59
Post from www.cnbc.com
