Boeing plans to purchase Spirit AeroSystems for $4.7 billion aiming to improve aircraft quality and safety increased from Congress, airlines and the U.S Department of Justice. Boeing President and CEO Dave Calhoun said in a statement issued in public “We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly.”
Boeing which is based out of Arlington was formerly owned by Spirit AeroSystems headquartered in Wichita, Kansas. By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes — centered on safety and quality,” Calhoun said. Blowout of a door on Alaska airlines 737 Max at 16,000 feet over Oregon has increased the safety concerns. Following this incident, an investigation was launched by the DOJ and the Federal Aviation Administration announced increased oversight of Boeing and Spirit.
According to Boeing, this acquisition values Spirit at $4.7 billion in equity, amounting to $37.25 per share, with the total deal valued at approximately $8.3 billion, including Spirit’s reported net debt. Following the deaths of 306 people in its Max 737 liners in Indonesia and Europe in 2018 and 2019, Boeing is under pressure by DOJ to plead guilty to criminal fraud.
Boeing has until the end of the week to accept the offer that involves pleading guilty to a conspiracy charge from 2021, paying a fine, and agreeing to a three-year probation with oversight by an independent monitor. Paul Cassell an attorney who represents the victim’s families told the CBS news that the proposal is a deal that favors Boeing and said that the families will object to this deal.
Further the FAA launched an investigation into the use of lithium parts with falsified quality documentation in Boeing and Airbus passenger jets. Both Boeing and Airbus have assured the safety of planes with these parts but committed to removing them from jets yet to be delivered to airlines. In October, Patrick Shanahan the former defense secretary in Trump administration was appointed as the CEO of Spirit. The CEO’s main objective is to bring Boeing and Spirit together and enable greater integration of both companies manufacturing, engineering capabilities, including safety and quality systems.
