Boeing reacquires Spirit AeroSystems for $4.7 billion to resolve 737 MAX woes

Boeing reclaims Spirit Aero: Boeing has agreed to repurchase Spirit AeroSystems for $4.7 billion in stock, marking the end of nearly two decades of independence for the world's largest standalone aerostructure company.

Airbus, Boeing's main competitor, which became a customer of Spirit after Boeing divested it, will assume control of the supplier's loss-making European operations in exchange for hundreds of millions of dollars in compensation.

This acquisition follows a significant safety and reputational crisis that erupted after a cabin panel blowout on a Boeing 737 MAX aircraft in January, prompting regulatory scrutiny of Boeing's quality control practices.

Timeline of notable issues related to the MAX

October 2018: A Lion Air MAX plane crashed in Indonesia, killing all 189 passengers.

November 2018: The FAA and Boeing began evaluating the need for software or design changes to the 737 MAX jets following the Lion Air crash.

March 2019: An Ethiopian Airlines MAX crashed, killing all 157 on board. China was the first country to ground the MAX, followed by other nations, including the US Federal Aviation Administration.

April 2019: The FAA formed an international team to review the safety of the 737 MAX. Boeing reduced monthly production by nearly 20 percent.

September 2019: Boeing's board established a permanent safety committee to oversee aircraft development, manufacturing, and operations.

October 2019: Boeing dismissed Kevin McAllister, the head of its commercial airplanes division.

December 2019: The company terminated CEO Dennis Muilenburg following the twin crashes.

January 2020: Boeing suspended 737 production, marking its largest assembly-line halt in over two decades.

May 2020: Boeing resumed 737 MAX production at a reduced rate.

June 2020: Boeing began a series of delayed flight tests of the redesigned 737 MAX with regulators at the controls.

November 2020: The FAA lifted the grounding order, allowing the 737 MAX to fly again.

December 2020: Congress passed legislation reforming how the FAA certifies new airplanes, requiring manufacturers to disclose certain safety-critical information to the regulator.

January 2021: The European Union Aviation Safety Agency approved the MAX's return to service in Europe.

March 2021: China's aviation regulator stated that major safety concerns with the MAX needed to be "properly addressed" before conducting flight tests.

April 2021: Boeing halted 737 MAX deliveries due to electrical problems, re-grounding part of the fleet.

November 2021: Current and former Boeing directors reached a $237.5 million settlement with shareholders over lawsuits concerning safety oversight of the 737 MAX.

October 2022: The FAA informed Boeing that some key documents submitted for the certification review of the 737 MAX 7 were incomplete and others required reassessment.

December 2022: Congress agreed to extend a deadline for new standards for modern cockpit alerts following intense lobbying from Boeing.

April 2023: Boeing paused deliveries of some 737 MAXs to address a new supplier quality issue involving non-compliant fittings.

July 2023: The first delivery of the 737 MAX 7 was delayed until 2024.

August 2023: Boeing identified a new 737 MAX supplier quality issue involving improperly drilled holes on the aft pressure bulkhead.

September 2023: Boeing's 737 MAX deliveries dropped to their lowest levels since August 2021.

December 2023: Boeing made its first direct delivery of a 787 Dreamliner to China since 2019, a sign that the country might soon unfreeze 737 MAX deliveries.

January 2024: A mid-air cabin blowout forced Alaska Air to make an emergency landing of its recently acquired 737 MAX 9 aircraft, prompting the FAA to ground 171 of these jets and launch an investigation. The FAA restricted Boeing from increasing MAX production but lifted the grounding of MAX-9s after inspections.

February 2024: The US National Transportation Safety Board published its preliminary report on the Alaska Air incident, revealing that the door panel that flew off the jet mid-flight was missing four key bolts.

March 2024: The FAA's 737 MAX production audit uncovered multiple instances where Boeing and supplier Spirit AeroSystems allegedly failed to meet manufacturing quality control standards. This occurred shortly after Boeing announced preliminary talks to acquire Spirit.

April 2024: 737 MAX production declined as US regulators intensified factory inspections and workers slowed the assembly line outside Seattle to complete outstanding work.

May 2024: The US Department of Justice stated that Boeing breached its obligations in a 2021 agreement that protected it from criminal prosecution over the 737 MAX crashes in 2018 and 2019.

June 2024: US senators criticised Boeing's CEO for the company's tarnished safety record.

July 1, 2024: Boeing completed the acquisition of Spirit in an all-stock deal valued at $4.7 billion. This move aimed to address Boeing's quality issues and accelerate jet deliveries.
 

(With Reuters Inputs)