Boeing spending millions to save major supplier

[Craig]

BOEING IS MAKING A BIG FINANCIAL MOVE TO SAVE ONE OF ITS KEY SUPPLIERS.
THE JET MAKER THIS WEEK CONFIRMED IT WILL ADVANCE $350-MILLION TO SPIRIT AEROSYSTEMS. SPIRIT MAKES THE FUSELAGE FOR BOEING PLANES.
BOEING IS DOLING OUT THE MONEY TO KEEP SPIRIT AFLOAT AS THE SUPPLIER IS EXPERIENCING HIGH LEVELS INVENTORY AND FINANCIAL PROBLEMS.
SPIRIT AEROSYSTEMS IS THE LARGEST EMPLOYER IN WICHITA, KANSAS. IT HAS AN ESTIMATED 12,000 WORKERS. THE COMPANY HAS SOUNDED THE ALARM THAT IT MIGHT NOT BE ABLE TO KEEP OPERATING DUE TO BILLIONS OF DOLLARS IN LOSSES OVER THE LAST FOUR YEARS.
WHEN THE F-A-A GROUNDED THE BOEING 737 MAX IN 2019 AFTER TWO DEADLY CRASHES, INVENTORY BACKED UP AS PLANE ORDERS PLUMMETTED.
BOEING’S TROUBLES TRICKLED DOWN TO SPIRIT.
BOEING’S MAINTENANCE PROBLEMS HAVE CONTINUED ON ITS AIRLINERS, INCLUDING A DOOR PLUG BLOWING OFF A FLIGHT, IN MID-AIR, EARLIER THIS YEAR AND RECENT THE MACHINISTS UNION STRIKE.
IN MARCH, AN F-A-A AUDIT OF THE MANUFACTURE OF THE 737 MAX AT BOEING AND SPIRIT AEROSYSTEMS FOUND “MULTIPLE INSTANCES” OF THE COMPANIES FAILING TO MAKE SURE QUALITY STANDARDS WERE MET. ‘
SPIRIT THEN LAID OFF 450 WORKERS IN MAY IN A COST-CUTTING MOVE AND IN LATE OCTOBER FURLOUGHED ANOTHER 700 EMPLOYEES FOR 21 DAYS. THE FURLOUGHED WORKERS, BUILD THE FUSELAGE FOR THE BOEING 767 AND 777 PLANES.
BOEING HAS NOW AGREED TO ACQUIRE SPIRIT AEROSYSTEMS IN AN ALL-STOCK TRANSACTION AT CLOSE TO $5-BILLION. THE DEAL IS EXPECTED TO BE COMPLETED BY MID 2025. FOR MORE UNBIASED UPDATES, DOWNLOAD THE STRAIGHT ARROW NEWS AP