Boeing has spent years trying to get back on track after two fatal 737 Max 8 crashes in 2018 and 2019, but the company has continued to face problems with production flaws and setbacks, including a door plug flying off a 737 Max 9 plane in mid-air after it took off in early January.
Boeing’s stock has fallen around 30% this year.
Boeing stock year to date.
The iconic company that once had a great reputation for safety is losing more and more market share to rival Airbus, which has delivered more planes and received more orders than Boeing for five consecutive years.
Some airlines are scaling back growth plans due to delays in production.
The pressure on Boeing has led to a major leadership shake-up. 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.
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 fuselages and wing elements, among other parts.
“Boeing is far and away their largest customer,” said Kevin Michaels, managing director of AeroDynamic Advisory. “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 some fuselages that are going to Boeing.
Spirit, however, also supplies parts to Airbus and other plane manufacturers, making the deal a little complex.
Watch the video to learn more.