Airplane maker Boeing is currently working on a funding agreement with its struggling supplier, Spirit AeroSystems. According to a recent report by Reuters, the agreement would see Boeing provide a cash injection to Spirit in order to help them deal with a series of financial problems.
Sources close to the matter indicate that the deal is still not agreed upon, with finer details being hashed out. If the talks are successful, the agreement should be publicly announced at some point next week.
Boeing previously stated that it intends to re-acquire Spirit AeroSystems in an all-stock deal at some point in 2025. Boeing originally sold the manufacturer in 2005 as part of a $1.2 billion deal.
Spirit AeroSystems previously disclosed that it has liquidity issues and expects to burn through large amounts of money in the near future. It projects it will go through $450 million to $500 million in cash for the rest of 2024 and the first two quarters of 2025 alone.
Spirit AeroSystems manufactures fuselage for Boeing’s 737 and 787 models while also producing flight deck sections for the majority of Boeing’s jets. Additionally, Wichita, Kansas-based company supplies major components to European airplane maker Airbus.
Reportedly, Airbus is considering providing Spirit with cash support as well to avoid delivery delays for its A350 model.