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Boeing plans to acquire Spirit AeroSystems for $4.7B

Defence Technology

Boeing to acquire Spirit AeroSystems 4.7B

In response to increased pressure, Boeing plans to acquire Spirit AeroSystems for $4.7 billion. The company claims this move will improve plane quality and safety.

Boeing used to control Spirit, but acquiring it would go against Boeing's policy of outsourcing significant work for its passenger aircraft. There have been issues with Spirit Airlines' strategy that have caused delays in making and delivering popular Boeing aircraft like the 737 and 787.

Spirit AeroSystems manufactures and supplies structural parts for military aircraft like the Bell V-280 Valor, Northrop Grumman's B-21 Raider, Boeing's E-7 Wedgetail, and P-8 Poseidon, as well as struts and nacelles for the B-52 Stratofortress.

Defense News' Top 100 list places Boeing as the fifth-largest firm in the world based on defense revenue. Spirit AeroSystems was ranked 86th.

Concerns about safety increased after a panel on an Alaska Airlines 737 Max 9 failed at 16,000 feet over Oregon on January 5th. Shortly after that, the Federal Aviation Administration announced that it would be closely watching Spirit, the company responsible for supplying the plane's fuselage, as well as Boeing.

The Alaska Airlines door incident frightened passengers, but no one was seriously hurt. The Justice Department wants Boeing to confess to committing a crime related to two deadly airplane accidents involving the 737 Max planes that happened over five years ago.

Federal prosecutors have outlined a possible settlement with Boeing, which they must accept or reject by the end of the week. The deal includes the appointment of an independent monitor to ensure compliance with anti-fraud rules. The Justice Department previously accused Boeing of violating the conditions of a 2021 settlement related to their role in the fatal disasters in Ethiopia and Indonesia.

Investigation into the Alaska Airlines disaster linked to a malfunctioning sensor in the flight control system. Spirit, not related to Spirit Airlines, had quality issues and recently replaced its CEO with Boeing executive Patrick Shanahan.

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