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Boeing has announced that it will move forward with acquiring Spirit AeroSystems in a $4.7 billion all-stock deal.
This decision comes as Boeing continues to face scrutiny over its safety and quality controls, highlighted by an incident in January where a door plug blew off a Boeing 737 Max 9 during an Alaska Airlines flight.
In a statement, Boeing President and CEO Dave Calhoun said, “This deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders, and the country more broadly. By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes – centered on safety and quality.”
Spirit CEO Pat Shanahan, a former Boeing executive and acting Defense Secretary, said the merger would enhance both companies’ manufacturing and engineering capabilities, particularly in safety and quality systems.
This development comes as The Department of Justice (DOJ) is evaluating whether Boeing violated a deferred prosecution agreement related to the fatal crashes of two Boeing 737 Max 8 planes in 2018 and 2019, which resulted in the deaths of 346 people.
Paul Cassell, a lawyer representing the families of the crash victims, indicated that the DOJ is considering a plea deal for Boeing, which includes a $244 million fine, three years of probation, and oversight by an external monitor. Cassell criticized the deal, stating it fails to adequately acknowledge Boeing’s responsibility for the fatalities or the harm caused.