Thread regarding Boeing Co. layoffs

Boeing will use this in the 751 contract coming up. Give us buy backs or we will move the 737 out of Washington. The 751 will say vote yes and you are right employees with go down the rabbit hole. Old story 751 and Boeing working together to make money for themselves

Airbus gets $0.5B cash and Boeing loses $5B in stock in this deal. Both Boeing and Spirit are badly broken and lack capable, experienced, motivated people to realistically change things. So it makes zero difference who Boeing selects as next CEO...other than creating another rich Boeing executive. I predict Airbus and COMAC will be the future duopoly.

This reminds me of two non swimmers trying to save each other in a rushing river. Can you guess what happens? You are correct. They both drown.

So one company in "complete and total" disarray is going to buy and manage another in the same state.

Yikes. I'll stay home, thanks.

Two decades after Boeing put its big aircraft subassembly plants in Wichita, Kan., and Tulsa, Okla., up for sale and created what became Spirit AeroSystems, the company announced late Sunday it has reached an agreement to acquire those major units of Spirit and bring that work back in-house

In a note to Boeing employees Sunday night, CEO Dave Calhoun said, “This is an opportunity to bring back critical airplane manufacturing work on Boeing airplanes into our factories — where Boeing and Spirit world-class engineers and mechanics can work seamlessly together.”

“Among the many actions we’re taking as a company, this is one of the most significant in demonstrating our unwavering commitment to strengthen quality,” he added.

Boeing said the merger is an all-stock transaction at an equity value of about $4.7 billion, or $37.25 per share.

Boeing will also take on Spirit’s last reported net debt of $3.6 billion, so the total transaction value is about $8.3 billion.

Spirit shareholders will receive between 0.25 and 0.18 Boeing shares for each of their Spirit shares, depending on the Boeing stock price when the deal closes.

Since Boeing sold off the business, Spirit diversified to build parts for European rival Airbus and other aircraft makers. So its sale required complex three-party negotiations that will break Spirit up.

Last year, 70% of Spirit’s revenue came from Boeing and 23% from Airbus.

Airbus has simultaneously entered a binding agreement to potentially acquire the units of Spirit in the U.S., France and Morocco that make major sections for its A350 and A220 aircraft. The Boeing acquisition is conditioned on the Airbus acquisition being finalized.

But Airbus won’t pay anything to acquire its parts of Spirit.

The European jet-maker “will be compensated by payment of $559 million from Spirit AeroSystems, for a nominal consideration of $1.00,” subject to adjustments when finalized.

This makes plain that the deal was engineered to suit Boeing’s needs, with Airbus ready to go along provided it was paid to do so.

For Spirit, the facilities making A350 and A220 parts have been bleeding cash due to low pricing from Airbus, so it makes sense to pay to get rid of them.

The deal will have to undergo regulatory review. Boeing said it is expected to close in mid-2025.

Boeing confirmed in early March its intention to reacquire Spirit in an effort to ensure the continued supply of major aircraft sections.

Boeing cannot afford to have Spirit fail. The supplier makes the forward fuselage of every Boeing commercial airplane and the entire fuselage of the MAX. It also makes wing components, engine nacelles and pylons for Boeing jets.

With this deal, Boeing acquires a troubled company running out of money. In the first quarter Spirit lost $617 million and at the end of March was $4.1 billion in debt with just $352 million cash on hand.

Spirit’s finances cratered in the past five years as delivery halts on the MAX and the 787 programs and then the aviation downturn due to the COVID-19 pandemic slashed its revenue. It also bled cash because of low pricing in its contracts with Airbus and Boeing.