Boeing, which previously owned Spirit, said it is bringing the supplier back into the Boeing fold to improve plane quality and safety, which has come under increasing scrutiny.

Boeing announced plans to acquire key supplier Spirit AeroSystems for $4.7 billion, a move that it says will improve plane quality and safety amid increasing scrutiny by Congress, airlines and the Department of Justice.

Boeing previously owned Spirit, and the purchase would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes. That approach has been criticized as problems at Spirit disrupted production and delivery of popular Boeing jetliners including 737s and 787s.

“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” Boeing President and CEO Dave Calhoun said in a statement late Sunday.

  • Quacksalber
    921·
    3 months ago

    “We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” Boeing President and CEO Dave Calhoun said in a statement late Sunday.

    Quick, someone post the press release when Boeing outsourced Spirit. I bet they said the outsourcing was also in the best interest of the flying public.

  • Admiral Patrick@dubvee.orgEnglish
    371·
    3 months ago

    “We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” Boeing President and CEO Dave Calhoun said in a statement late Sunday.

    Fixed that for them.

    It’s funny how mergers and acquisitions are always the cure all for every company’s woes, but every time one company gobbles up another, everything always gets worse (especially Boeing). Then the cure for that is to…buy another company. It’s like the corporate equivalent of “Of course having a baby would save our failing marriage”

  • Flying Squid@lemmy.world
    263·
    3 months ago

    Yes. Spend more money rather than change anything. That makes sense. They probably should also do a stock buyback again too just to be sure.

    • Zipitydew
      9·
      3 months ago

      This is changing things. Vertical integration of a key supplier isn’t necessarily a bad thing.

      And this is sort of like if GM woke up one day and decided to buy back Allison Transmission. Sprit was part of Boeing. It got sold off by bad leadership. Sprit never landed many other contracts past Boeing. Boeing is now buying them back to reintegrate a piece of old Boeing leadership never should have sold.

  • DarkGamer@fedia.io
    223·
    3 months ago

    Fire the board, liquidate the company, start over. The cancer of McDonall Douglas must be excised.

  • athairmor@lemmy.world
    191·
    3 months ago

    Yeah, I’m just going to assume this is Boeing buying evidence of crimes and the silence of Spirit’s executives and board.

  • antihumanitarian@lemmy.worldEnglish
    18·
    3 months ago

    For people lacking context, Boeing split off and sold their division that became Spriti Aerosystems. The theory at the time was that Boeing’s core competency wasn’t building airplanes, it was managing relationships with other vendors. In particular, the actual plane manufacturing part of the company was undesirable due to perceived poor “Return on Net Assets.” The theory they pitched to shareholders was they should sell off non obviously profitable divisions so they reduced asset liability while keeping the same or better profits.

    That was their explanation, of course it was a terrible idea.

  • thefartographer@lemm.ee
    11·
    3 months ago

    “I know you didn’t like when I tried to sell your baby to score some meth, but if you just give me some crack, I’m sure I can think up a solution that’ll make everyone happy.”