Spirit AeroSystems has disclosed an agreement with Boeing, whereby the aerospace giant will furnish advance payments totalling US$425 million, according to REUTERS news agency. This agreement aims to assist Spirit in addressing challenges such as elevated inventory levels and reduced cashflows, following the U.S. aviation regulator’s imposition of a production cap on Boeing’s 737 MAX aircraft.
Under the terms of the agreement unveiled by Spirit on Tuesday, April 23, the company will uphold a production rate that aligns with Boeing’s contractual production requirements. This development unfolds amidst ongoing discussions between the two entities regarding Boeing’s potential acquisition of Spirit, its former subsidiary. This move comes as Boeing endeavours to mitigate the ramifications of a far-reaching crisis triggered by a mid-air panel blowout in January.
Furthermore, as part of the deal, Spirit will furnish Boeing with designated financial updates on a weekly basis. This collaboration is anticipated to alleviate challenges stemming from lower anticipated deliveries to Boeing, attributed to constraints imposed by the Federal Aviation Administration on previously projected production rate escalations. Additionally, the agreement aims to tackle escalating factory expenses necessary for sustaining production quality and readiness levels.
