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- Can Boeing's Purchase Of Spirit AeroSystems Help Solve Its Problems?
Can Boeing's Purchase Of Spirit AeroSystems Help Solve Its Problems?
Discover how Boeing's acquisition of Spirit AeroSystems could potentially address the company's production flaws and setbacks, amidst stock decline, market share loss to Airbus, and delays affecting airlines' growth plans.
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Video Transcript
Boeing has spent years trying
to get back on track after the
fatal Max eight crashes, but
the company has continued to
face problems with production
flaws and setbacks, including
a door plug flying off a max
nine plane in mid-air after it
took off from Portland,
Oregon. Boeing's stock has
fallen about 30% this year.
The iconic company that once
had a great reputation for
safety is losing more and
more market share to rival
Airbus. It's delivered more
planes and received more
orders for the fifth
consecutive year.
Some airlines are scaling
back growth plans due to
delays in production.
Airlines are desperate for new
planes, but not knowing how
many planes that you're going
to have in your fleet by July,
let's say, is a very
complicated, frustrating thing
for airline executives.
My message is Boeing hasn't
changed since the last time we
talked. It's let's get your
act together.
Deliver first.
Focus on the basics.
Get aircraft that are quality
at first and foremost and
safe.
The pressure on Boeing has led
to a major leadership shakeup,
and in an effort to correct
manufacturing flaws and get
production back on track, it
announced it's in talks to buy
fuselage maker Spirit
AeroSystems, a company that
Boeing spun off in 2005.
So much of Boeing's
manufacturing has become
outsourced, and now Boeing is
kind of backtracking and
saying, okay, maybe that was
a little bit too much,
especially when it comes to
the maker of their fuselages.
Spirit AeroSystems, which is
not to be confused with Spirit
Airlines, is one of the
biggest aerostructure
companies in the world with
many locations around the
globe. It makes components
for both commercial and
military aircraft, including
larger elements like fuselages
and wings.
Boeing is far and away their
largest customer, and Spirit
provides 100% of the
fuselages for the world's
second most popular aircraft,
the 737.
Over the past few years, there
have been a series of
manufacturing flaws that have
come out of the Spirit
AeroSystems factory on big
chunks of the fuselage that
are going to Boeing.
Clearly, a
lot of manufacturing mishaps
that are going on.
Yeah, so Boeing has to bring
Spirit in-house to be better
managed.
The deal, if it closes, would
be the biggest for Boeing
since its merger with
McDonnell Douglas in 1997.
