SPR - Boeing reportedly wants to cut Spirit AeroSystems ties with rival Airbus

2024-03-20 08:52:15 ET

Boeing Co (NYSE: BA) is in focus today following a report that it’s exploring ways to cut or at least minimise Spirit AeroSystems Inc ties (NYSE: SPR) with rival Airbus SE .

Spirit and Airbus have held exploratory talks

The aerostructure manufacturer currently drives about 20% of its revenue from Airbus – which may mean a hurdle for Boeing in acquiring .

Therefore, is considering unloading or redeploying the segment of Spirit AeroSystems that serves Airbus after the expected transaction, as per sources that talked to Reuters today on condition of anonymity.

In fact, has already held exploratory talks with its European client over selling its factory in Belfast, Northern Ireland.

Boeing is also considering unloading at least two units in defense, space, and security as well, the sourced added on Wednesday.

Boeing will continue to burn cash in Q1

Separately, Brian West – the chief financial officer of Boeing Co says the New York listed firm is keeping 737 MAX production under the FAA imposed limit of 38 per month.

He also confirmed at an investor conference today that will accept only a fully conforming fuselage from Spirit AeroSystems.

Limiting production, he added, will help improve quality of the company’s best-selling jetliner.

West now expects Boeing to burn up to $4.5 billion in cash in the first quarter – more than what he expected in January. Boeing narrowed its loss in Q4 but skipped future guidance at the time amidst the ongoing 737 MAX crisis ( read more ).

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