Boeing Co. is reportedly in talks to acquire supplier Spirit AeroSystems, a critical player in recent quality issues faced by the aerospace giant. According to sources familiar with the negotiations cited by the Wall Street Journal, this potential deal could have significant implications for both companies.
Spirit AeroSystems & Boeing Respond
Despite the buzz surrounding the possible acquisition, Spirit AeroSystems, based in Wichita, Kan., has remained tight-lipped. Boeing, on the other hand, released a brief statement stating that they have no further comments to add at this time.
Market Impact & Safety Concerns
News of the acquisition talks caused shares of Spirit AeroSystems to surge by 16% during midday trading. The supplier has been under increased scrutiny following its involvement in a recent mid-air panel blowout incident with Alaska Airlines.
With aviation regulators now holding Boeing accountable for safety and quality improvements, RBC analyst Ken Herbert anticipates additional measures to be implemented. This could potentially affect Boeing’s delivery schedule, contributing to lower first-half deliveries in 2024.
Past Challenges & Future Outlook
Both Boeing and Spirit AeroSystems have faced challenges in the past, particularly related to production issues with the 737 Max jets. These setbacks, along with broader industry dynamics, have impacted their stock performance over the last year.
While Boeing’s shares have declined by 1.8%, Spirit AeroSystems has seen a 4.5% drop. In comparison, the S&P 500 index has experienced approximately 30% gains within the same timeframe.