Can Boeing’s Spirit AeroSystems acquisition restore trust?

Shares of Boeing (BA) are climbing after agreeing to buy back fuselage maker Spirit AeroSystems (SPR) in a deal valued at around $4.7 billion.

Josh Lipton and Seana Smith report more on the story and the issues facing the company, from leadership changes to criminal charges.

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This post was written by Melanie Riehl

Video Transcript

All right.

Well, shares of Boeing on the rise today, the jet maker announcing that it will buy back supplier Spirit Aero Systems for 3725 a share of the deal uh just around $4.7 billion.

Now, they’re doing this just about 20 years after the spin off from uh Spirit aerosystems here.

So I think the question that Wall Street is asking right now is how much of an overhang, maybe this removes when we talk about the turnaround, a picture that’s taken in place of the turnaround story right now of Boeing, what Boeing needs to do in order to really regain some of that momentum, win back trust, not only of its customers who are flying on airplanes, but obviously the airlines themselves, maybe this move is going to be enough here in order to regain some of that trust, get a little bit more of a better handle on the manufacturing side of things and maybe eliminate some of the issues that have plagued Boeing here over the last shovel years.

But again, analyst, at least early reaction do remain cautious on what exactly or how big of a catalyst this is going to be for Boeing, at least in the media, uh, I guess in the near term, near to medium term.

And on top of that we had, so that’s one headline then, I mean, there’s a lot of Boeing headlines.

We had a lot of, then we had reports that you saw Sean Doj plans to charge Boeing with criminal fraud.

Find the company violated a 2021 deferred prosecution agreement.

This was tied to uh two previous fatal crashes.

So a lot going on and on top of all that, of course, what you’re wondering who’s actually gonna be leading this company because you have the CEO Dave Kel and we know he’s resigning at the end of the year.

So who takes that big chair?

You have heard folks kind of asking could it be Pat Shanahan C of Spirit AO Systems?

Is, is that the guy we wait and see.