Spirit AeroSystems, Boeing reach price agreement

Spirit AeroSystems (Wichita, Kans., U.S.) and Boeing (Arlington, Va., U.S.) have entered into a memorandum of agreement (MOA) under which Boeing will provide the supplier with immediate funding and revised pricing on 737 and 787 production. As part of the deal, Spirit will receive higher prices for components it produces for the 787 Dreamliner, while 737 unit prices will be cut from 2026 to 2033.

Part of the agreement also involves Boeing providing funding for tooling — including materials to support demand for the 737-10 model — and capital through 2025 for planned and potential rate increases for the 737 and 787. Boeing’s first payment of $100 million will be within 10 days of finalizing the MOA. The agreement is anticipated to generate an extra $455 million in sales for Spirit between 2023 and 2025, but revenues from 2026 to 2033 are expected to fall by $265 million. The agreement’s final details are expected to be ironed out by Nov. 17, 2023.

Overall, the agreement is intended to address operational challenges and improve collaboration between the supplier and plane maker. The companies will work together to improve supply chain performance and resiliency, uniting their production systems to enable greater market responsiveness and delivery assurance.