Boeing buys struggling supplier Spirit AeroSystems to shore up 737 production woes

Unfinished fuselages for the Boeing 737 during production at the Spirit AeroSystems factory in Wichita, Kan.The Spirit deal, an all-stock transaction valued at $4.7 billion , is intended to give Boeing greater oversight and control of manufacturing operations, which have been under a harsh spotlight this year.

No one was seriously injured during Alaska Airlines Flight 1282 in January, but the incident rekindled concerns about Boeing's quality control following“Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems,” said Spirit CEO Patrick Shanahan.

Boeing and Spirit had been in talks for months. But the deal was complicated because Spirit also supplies parts for Airbus, Boeing's major rival in commercial aviation. While Boeing and Spirit agreed to the deal, Spirit is still negotiating with Airbus., Airbus said while there's no guarantee that a transaction will be concluded,"all parties are willing and interested to work in good faith to progress and complete this process as timely as possible.

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