Boeing has agreed to buy an aerospace supplier in a £3.7billion deal as it tries to contain its ongoing safety crisis.
The scandal-hit airline said the acquisition of Spirit AeroSystems was in the ‘best interests’ of its passengers.
Spirit manufactures and supplies key parts of Boeing planes including the wings and main body of the aircraft.
Boeing previously owned the Kansas-based group before spinning it off in 2005 as it pushed ahead with plans to slim down the business.
But this strategy has come under fire in recent years as Boeing faces a series of safety issues.
Safety scandal: Boeing said the acquisition of Spirit AeroSystems was in the ‘best interests’ of its passengers
The group was plunged into crisis in January after a faulty door panel, manufactured by Spirit, blew off a Boeing 737 MAX plane mid-air.
The incident, which happened at 16,000 feet on an Alaska Airlines flight, terrified passengers and led to all Boeing 737 Max planes being grounded.
Production was halted and restarted at a reduced level on the instructions of the Federal Aviation Administration (FAA).
Regulators also found more manufacturing issues at Spirit. In a bid to calm concerns, Boeing will now bring the supplier in house.
‘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,’ said Boeing president and chief executive Dave Calhoun.
‘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 — centred on safety and quality.’
Boeing made up around 70 per cent of Spirit’s revenue last year, while roughly a quarter came from Boeing’s main rival Airbus.
Under the deal, Airbus will take over parts of the Spirit business that manage its own plane making.
Russ Mould, investment director at AJ Bell, said the move ‘makes sense’ for Boeing.
He said: ‘Spirit was at the heart of the manufacturing defects and safety concerns over its 737 Max airliner which have put Boeing’s share price into a tailspin. This move gives Boeing more control.’
But troubles still remain at Boeing. The US Department of Justice Boeing has given the company a week to admit fraud charges or face a public trial over the fatal crashes of its 737 Max planes in 2018 and 2019.
Boeing would have to pay a £192m criminal fine and accept a three-year probation period, according to reports.
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