Boeing spent years trying to get back on track after two fatal 737 Max 8 crashes in 2018 and 2019, but the company continued to face problems with defects and production setbacks, including a door jam who flew off a 737 Max 9 plane in mid-flight. after taking off in early January.
Boeing’s stock has fallen about 30% this year.
Boeing stock year to date.
The iconic company that once had a great reputation for security is losing more and more market share to its rival. Airbuswhich has delivered more planes and received more orders than Boeing for five consecutive years.
Some airlines are scaling back their growth plans due to production delays.
The pressure on Boeing led to a major management shakeup. And in an effort to fix manufacturing flaws and get production back on track, it announced it was in talks to buy fuselage maker Spirit AeroSystems, a company Boeing started in 2005.
Spirit AeroSystems, which should not be confused with Spirit Airlines, is one of the world’s largest aerostructure companies with numerous locations around the world. It manufactures components for commercial and military aircraft, including fuselages and wing elements.
“Boeing is by far their biggest customer,” said Kevin Michaels, managing director of AeroDynamic Advisory. “Spirit supplies 100% of the fuselages of the second most popular aircraft in the world, the 737.”
In recent years, a series of manufacturing defects have appeared at the Spirit AeroSystems factory on certain fuselages intended for Boeing.
However, Spirit also supplies parts to Airbus and other aircraft manufacturers, making the transaction a bit complex.
Watch the video to learn more.
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