Boeing HQ
Boeing news today centers on financing Spirit Aero, a new MAX order, two legal wins, and Southwest blaming late airplane deliveries for staffing cuts.
The company has arranged an advance payment agreement with Spirit AeroSystems to keep the troubled manufacturer of 737 MAX fuselages solvent prior to completing the company’s planned re-acquisition of the supplier. The transaction to acquire Spirit will likely close in 2025, and will likely remain at the negotiated price, less the advanced payments made in the interim. Boeing needs a healthy Spirit to supply “clean” fuselages as it re-ramps 737 MAX production post strike.
In good news, Avia Solutions Group, a European-based ACMI operator with a fleet of 220 aircraft, including 14 737 MAX, has placed a direct order with Boeing for 40 737 MAX 8 aircraft plus 40 options. The first airplanes from this order are due in 2030, reflecting the current six year backlog for the MAX family.
Boeing’s legal department made news this week, reaching an 11th hour settlement with the final victim from a group that enables the company to avoid a civil trial and the adverse publicity that would be associated with it. While the trial would have been for damages only, as their culpability has already been established in other legal actions, publicity from a trial would not have been positive for the company.
In another trial from a now-defunct South African airline that operated the MAX, Boeing won arguments regarding discovery in that action since the defunct airline failed to maintain key records. That should benefit the company as the case moves forward.
Southwest Airlines, the largest 737 operator in the world, has been plagued by delayed deliveries of 737 MAX aircraft and the long-delayed certification of the MAX 7 variant that it needs. The company doesn’t have the lift to maintain its schedule, and will be cutting ground staff at 18 airports, blaming Boeing for these actions. Southwest, whose philosophy was to operate only one aircraft type to minimize cost, is paying the price of the downside risk of an un-diversified fleet strategy.
The company was able to deliver 14 aircraft during the strike, four 787s from their non-union facility, one 767F freighter, and 9 737 MAX.
Finally, COMAC, at the Zhuhai Air Show, has announced that Air China, the country’s national carrier, will be the launch customer for the C929 wide-body. First flight of the new model is anticipated for 2027, and details of the initial order, in terms of quantity and timing, have not been disclosed.
Links to today’s key news items follow:
- Boeing throws Spirit $350 million lifeline to support production – BNN Bloomberg
- Spirit AeroSystems announces advance payments agreement with Boeing – Spirit Aero
- Avia Solutions Group orders 40+40 737 MAX 8 – AirInsight
- Boeing wins discovery spat in African airline’s 737 MAX suit – Law360
- Boeing reaches last-minute settlement with victim’s family to avoid a civil trial in 737 MAX crash that killed 157 – Fortune
- Southwest is offering buyouts to airport workers and blaming Boeing for the job cuts – AP
- China’s Zhuhai air show provides an orders bump – AirInsight
- Strike slashed Boeing jet deliveries in October – Seattle Times
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