Boeing is reportedly discussing the possibility of buying its former affiliate Spirit AeroSystems as the two companies continue to face safety concerns with the 737 MAX jets.
Both Boeing and Spirit have been under intense scrutiny from the public after a string of alarming production mishaps, including the blowout of a door plug on the fuselage of a 737 MAX 9 in January, causing the Alaska Airlines jet to make an emergency landing just after departing from Portland, Oregon.
Spirit hired bankers to deliberate its options in moving forward with Boeing, an anonymous source close to the conversation told the Wall Street Journal.
“We believe that the reintegration of Boeing and Spirit Aerosystems’ manufacturing operations would further strengthen aviation safety, improve quality and serve the interests of our customers, employees and shareholders,” Boeing officials said in a statement Friday.
Boeing diverged from Spirit in 2005 as part of its strategic plan to reduce costs and increase efficiency by relying on external suppliers for production. Its effort to take back control of the supply chain could remedy the company’s reputation and solve its recent struggle with quality and safety problems that have slowed the delivery of airplanes.
News of the potential merger comes after Boeing ousted its CEO in charge of the 737 MAX production program last month. Since the outlet reported the talks, Spirit’s shares spiked 15%, while Boeing’s dropped 1%.
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The Federal Aviation Administration announced Wednesday that Boeing has 90 days to come up with a plan to fix the quality and safety troubles the planemaker has been plagued with.
While talks between Boeing and Spirit have been reported and Boeing executives have been in close contact with Spirit’s CEO Pat Shanahan, no deal has been made or is guaranteed, the Wall Street Journal reported.
