Boeing confirms it's in talks to buy Spirit AeroSystems, its key supplier on the troubled 737 Max

economictimes.indiatimes.com:

Boeing said Friday that it is in "preliminary discussions" to buy Spirit AeroSystems, which builds fuselages for Boeing 737 Max jetliners, including the one that suffered a door-panel blowout on an Alaska Airlines flight in January.

Boeing used to own Spirit, and it said that bringing the manufacturer back into the Boeing fold would improve plane quality and safety, which has come under increasing scrutiny by regulators, Congress and airlines.

The announcement confirmed media reports that the two companies were talking about a deal. Reaching one could help Boeing respond to critics who have blamed the company's manufacturing problems in large part on outsourcing key work to Spirit and other suppliers.

Boeing said it has been working with Spirit to improve the quality of the planes they build and that the collaboration «has resulted in preliminary discussions about making Spirit AeroSystems a part of Boeing again.»

«We believe that the reintegration of Boeing and Spirit AeroSystems' manufacturing operations would further strengthen aviation safety, improve quality and serve the interests of our customers, employees, and shareholders,» Boeing said.

Spirit AeroSystems also confirmed the talks, while cautioning that it could not make any promises about closing a deal or its terms.

Shares of Spirit rose more than 15% by the end of regular trading.

Boeing spun off Spirit in 2005 as part of a strategy to outsource the supply chain for its commercial planes.