Boeing's Possible Plan to Reacquire Spirit AeroSystems

TLDRBoeing is considering reacquiring Spirit AeroSystems to regain control over critical parts of their supply chain amidst quality issues. The move would send a strong message and improve direct control, but financial challenges and debt must be considered.

Key insights

🔍Boeing is acknowledging the mistake of selling Spirit AeroSystems and considering reacquiring it.

💰Financial challenges and debt make the acquisition a challenging decision for Boeing.

🏗️Regaining control over critical parts of the supply chain would help Boeing address quality issues.

🌍Airbus' ownership of its manufacturing facilities gives them a cost advantage over Boeing.

🤝Boeing's potential reacquisition of Spirit AeroSystems could strengthen their working relationship and simplify warranty work.

Q&A

Why is Boeing considering reacquiring Spirit AeroSystems?

Boeing wants to regain control over critical parts of their supply chain and address quality issues.

What are the financial challenges in reacquiring Spirit AeroSystems?

Boeing is already facing significant debt, and acquiring Spirit AeroSystems would increase their financial burden.

How would the reacquisition benefit Boeing?

It would give Boeing more direct control over their supply chain and improve their ability to address quality issues.

What advantage does Airbus have over Boeing in terms of manufacturing?

Airbus owns most of its manufacturing facilities, providing them with a cost advantage.

How could the reacquisition of Spirit AeroSystems improve the working relationship between Boeing and Spirit?

Bringing Spirit AeroSystems back under Boeing's control could simplify warranty work and enhance collaboration.

Timestamped Summary

00:00Boeing is considering reacquiring Spirit AeroSystems amidst quality issues and to regain control over critical parts of their supply chain.

02:11Boeing's decision to sell Spirit AeroSystems in 2005 was aimed at focusing on their core activities, but it proved to be a mistake.

05:34Reacquiring Spirit AeroSystems would be a challenging decision for Boeing due to their financial challenges and debt.

07:53Airbus owns most of its manufacturing facilities, giving them a cost advantage over Boeing.

09:40Reacquiring Spirit AeroSystems could improve the working relationship between Boeing and Spirit, simplifying warranty work and enhancing collaboration.