Boeing completes $4.7 bn purchase of 737 Max supplier Spirit AeroSystems

Boeing said Monday it has completed a $4.7 billion purchase of key supplier Spirit AeroSystems, which builds fuselages for the giant aerospace company's 737 Max jetliners, including an Alaska Airlines aircraft that suffered a door-panel blowout last year.

The deal, in the works for over a year, also brings Boeing's largest provider of spare parts in-house. CEO Kelly Ortberg called it a pivotal moment for Boeing's future.

As we welcome our new teammates and bring our two companies together, our focus is on maintaining stability so we can continue delivering high quality airplanes, differentiated services, and advanced defense capabilities for our customers and the industry," Ortberg said in a statement.

Boeing previously owned Wichita, Kansas-based Spirit but spun it off in 2005. Reabsorbing the company, which is not related to Spirit Airlines, reverses a longtime Boeing strategy of outsourcing major work on its passenger planes an approach that faced mounting criticism in recent years as manufacturing problems at Spirit disrupted production and delivery of popular Boeing jetliners, including 737s and 787s.

When Boeing announced in July 2024 that it planned to reacquire Spirit, it positioned the move as a step toward improving quality and safety. Concerns about safety came to a head almost six months earlier, after the door panel flew off the Alaska Airlines plane as it travelled 4,876 metres over Oregon.

The mishap left a gaping hole in the side of the jetliner, but no one was seriously injured. Investigators with the National Transportation Safety Board later said four bolts that help secure door panels were missing from the Alaska jet after repair work at a Boeing factory.

The finding renewed questions about Boeing's safety culture and came as the company confronted an ongoing criminal case over two earlier fatal crashes involving its Max jetliners.

Those crashes, which happened off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019, killed 346 people and led to a worldwide grounding of the 737 Max for nearly two years. The Justice Department accused Boeing of deceiving regulators about a flight-control system that was later implicated in the crashes.

The criminal case was resolved just last month, when a federal judge in Texas approved the Justice Department's request to dismiss the charge as part of a deal with Boeing. In exchange, Boeing agreed to pay or invest an additional $1.1 billion in fines, compensation for the crash victims' families, and internal safety and quality measures.

Boeing has said the total value of the Spirit acquisition is around $8.3 billion. Shares of the company rose 2.2% on Monday.