Why Is Boeing Reacquiring Its Stressful Supplier

Boeing plans to acquire Spirit AeroSystems for $4.7 billion in response to rising plane safety concerns and increased scrutiny from Congress, airlines, and the Department of Justice. Boeing, reversing its outsourcing strategy, aims to address production issues affecting its 737 and 787 jetliners. The move follows safety incidents, including a January event where an Alaska Airlines 737 Max 9 panel blew out, prompting further oversight from the FAA and pressure from the Justice Department to plead guilty to earlier crash-related fraud charges. Spirit AeroSystems, with a workforce of over 13,000, faces quality control issues and plans to lay off 450 workers due to production slowdowns. The deal, valued at $8.3 billion including debt, involves Boeing shares exchanged for Spirit shares and potential negotiations with Airbus for additional assets.

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