Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
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Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#2Archive link: https://archive.is/TE6iR
Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#3FYI, Spirit was originally part of Boeing. They're walking back a strategy of outsourcing that is said to be one of the causes of their recent QC problems.
Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#4FYI, Spirit was originally part of Boeing. They're walking back a strategy of outsourcing that is said to be one of the causes of their recent QC problems.
It is one of the causes, because Spirit have had numerous serious quality control lapses they've tried to hide (including as trivial and as serious as failing to drill holes properly). But Boeing itself has the same types of issues, so while it will give them more control, there won't be a fundamental change unless Boeing manage to fix their culture, which is highly unlikely in the short term. Especially while they're preparing for union contract negotiations with multiple crucial unions that have them by the balls.
Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#5The interesting part of the deal is the parts spun off to Airbus. There are some minor components manufactured for Airbus jets, and then there's the A220 (formerly C-series), which as a designed by Bombardier plane, had production in the former Bombardier factories that were sold to Spirit. Most notably, the wings.
Airbus only needs the part of Spirit that relate to them, but Spirit's factories are not organised like that (e.g. the Northern Ireland complex that manufacturers the A220 wings also manufactures parts for Bombardier private jets). So it would be interesting exactly how Spirit, Boeing and Airbus split things up, and what the impact on workers and production will be.
Also, Airbus was asking to be paid for taking the parts of Spirit related to them because of their sorry state (the Northern Ireland site needs billions of investments, according to them). It's pretty funny if Boeing paid Airbus to take parts off Spirit so that Boeing can begin to try to fix their mistake from 20 years ago. Airbus are definitely making them a favour though (if they refuse, anti-competitive regulators will surely block the deal). So it's a win for Airbus, potential long term win for Boeing.
Edit: just read the FT's article on the topic, which is more detailed and covers those topics - Airbus will receive $559 million, and will take over Spirit factories in Northern Ireland, Morocco and France. Spirit will spin-off some other unrelated businesses, including other parts of the Northern Ireland facilities, which might be disastrous for the workforce there.
Article: Boeing agrees to buy Spirit AeroSystems in $4.7bn deal - https://on.ft.com/3VMqoiL via @FT
Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#6"in an all-stock deal"
https://www.reuters.com/markets/deals/boeing-agrees-deal-buy...
Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#7"in an all-stock deal" https://www.reuters.com/markets/deals/boeing-agrees-deal-buy...
I'm no expert but who in the right mind agrees to getting paid in Boeing stocks?
Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#8"in an all-stock deal" https://www.reuters.com/markets/deals/boeing-agrees-deal-buy...
I'm no expert but who in the right mind agrees to getting paid in Boeing stocks?
Depends on the stock you’re trading in, and judging from the news, spirit stock might just be even less solid than Boeing. As far as I understand, a lot of Boeings issues are connected to Spirit as a subcontractor. At the very least, you can rest assured that the US government won’t let Boeing fail completely.
Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#9"in an all-stock deal" https://www.reuters.com/markets/deals/boeing-agrees-deal-buy...
I'm no expert but who in the right mind agrees to getting paid in Boeing stocks?
Boeing is 64% of spirits revenue. Without Boeing, they don't exist anyway. Not to mention how Boeing's stock might be down, but they are not going to disappear at all.
Just from a strategic standpoint, USA has Boeing, EU Airbus and China has the Chinese Boeing /Airbus. Major aviation companies just aren't created any more, no major government would let their strategic assets fall like that.
Re: Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier
#10"in an all-stock deal" https://www.reuters.com/markets/deals/boeing-agrees-deal-buy...
I'm no expert but who in the right mind agrees to getting paid in Boeing stocks?
Someone who knows how critical Boeing is (even in its depleted state) and thinks the government won’t let them fail?
Just hazarding a cynical guess.