Boeing is in preliminary talks to buy back Spirit AeroSystems, the company it spun off in 2005. This potential acquisition marks a significant shift in Boeing’s strategy, as it would reverse a long-standing trend of outsourcing key manufacturing operations.
The news comes amidst ongoing scrutiny surrounding Boeing’s quality control practices, following a door panel blowout incident on a 737 MAX aircraft in January 2024. This incident, involving a plane built with parts from Spirit AeroSystems, led to the temporary grounding of all 737 Max 9 planes in the United States.
Reintegrating Spirit back under Boeing’s umbrella would allow for greater control over the manufacturing process, potentially leading to improved quality and safety of Boeing’s airplanes, according to a statement by Boeing. This sentiment is echoed by Spirit, which stated in a separate press release that they are “currently engaged in discussions with Boeing about a possible acquisition”
In parallel with Boeing, Spirit is reportedly in talks with Airbus regarding the possible acquisition of their Belfast, Northern Ireland, plant. This Spirit facility supplies structural components, primarily on wings, for the Airbus A320, A330, and A340 families of aircraft. This move would allow Airbus to secure a crucial supplier and potentially expand its own manufacturing capabilities. For Spirit, selling the plant to Airbus could offer financial stability and a clearer path forward amid ongoing talks with Boeing as the US manufacturer would likely not want to be producing components for its rival.
Whether the Airbus or Boeing talks with Spirit AeroSystems will ultimately result in any acquisition remains to be seen. Both firms are keen to regain control of their supply chains, which could tip the scales to moving on to acquisition. The move is not without precedent. Airbus, for example, has repatriated its formerly separated units Premium Aerotec and Stelia Aerospace back under its aegis. By bringing operations back in-house, both companies aim for greater control over the manufacturing process, potentially leading to improved quality, efficiency, and delivery times.
A military history enthusiast, Richard began at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet grew in importance as a research tool, he helped design the company's Forecast Intelligence Center and currently coordinates the EMarket Alert newsletters for clients. Richard also manages social media efforts, including two new blogs: Defense & Security Monitor, covering defense systems and international issues, and Flight Plan, which focuses on commercial aviation and space systems. For over 30 years, Richard has authored the Defense & Aerospace Companies, Volume I (North America) and Volume II (International) services. The two books provide detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database that tracks all the contractors involved in the programs covered in the FI library. More recently he was appointed Manager, Information Services Group (ISG), a new unit that encompasses developing outbound content for both Forecast International and Military Periscope.
