Steffen Kress’ Post

After arranging a new flight, a missed connection provides an opportunity to ponder. 😁 Recent news about Boeing and Spirit AeroSystems negotiations with potential divestiture of Airbus programs from Spirit, has got me thinking about incorporation and the formation of businesses. These entities are expected to play a crucial role in managing expectations and related transaction costs. They are persons under the law and live indefinitely to achieve their stated purpose. The role of contracts between business serve essentially the same purpose: clarifying expectations and minimizing transaction costs in business dealings. However, the complexity of contracts can inadvertently lead to increased transaction and legal costs, potentially driving industry consolidation. Complex contracts often require extensive legal review and negotiation, which can significantly inflate transaction expenses before there are any exchanges of goods or services. Moreover, the intricacies of these contracts may lead to disputes, further escalating legal costs. In the #aerospace industry where large corporations can absorb these costs more effectively, smaller entities may struggle to compete. This trend can limit competition and innovation within the industry, potentially impacting consumers and market dynamics. Some of this is unavoidable in a highly regulated industry. That said and where possible, efforts to streamline contractIng and simplify business relationships can collectively mitigate the above challenges and pave the way for positive change and continue a rich history of innovation in commercial aerospace.

Boeing Reunites with Spirit AeroSystems in $8.3 Billion Deal: Airbus Left Out in the Cold! On July 1st, 2024, Boeing announced a significant move in the commercial aerospace industry - the acquisition of its former supplier, Spirit AeroSystems, for $8.3 billion. This strategic reversal brings back under Boeing's wing a company responsible for a whopping 70% of the critical 737 aircraft's aerostructures. This multi-billion dollar move by Boeing is a bold step with significant implications for the future of commercial aviation. As the industry watches the integration process unfold, questions remain about how Airbus will respond and how this consolidation will reshape the competitive landscape. #Airport #Airline #Boeing #SpiritAerosystems #Airbus #AviationIndustry #AviationOasis https://lnkd.in/edsgs2Pv

Boeing is nearing a deal to buy back Spirit AeroSystems... Could be finalized within days or weeks. Reuters - All of the sources spoke on condition of anonymity due to the sensitivity of the talks. 🌀Talks have progressed following Spirit AeroSystems' separate discussions with Airbus regarding a transatlantic breakup. 🌀Boeing seeks to stabilize its supply chain after a mid-air blowout on a 737 MAX in January. 🌀Airbus had threatened to block the deal due to Spirit's involvement in building parts for its models. 🌀A division of Spirit's programs has been agreed upon: some work will go to Boeing, some to Airbus, and some may be sold or handled separately. 🌀The timing of the deal is uncertain but could be finalized within days or weeks. 🌀All sources remain anonymous due to the sensitivity of the talks. 🌀Airbus is making "good progress" in its discussions with Spirit. 🌀Spirit AeroSystems posted a significant net loss of $617 million in Q1. 🌀Boeing's interest in buying back Spirit is driven by concerns over safety, quality, and Spirit's financial and industrial resilience. 🌀Spirit Aero shares increased by 4.1% in after-hours trading on Thursday. 🌀Airbus may take over Spirit's operations for the A350 and A220 models. 🌀Boeing and Airbus have been addressing issues related to inventory costs and contract values. 🌀Airbus is in discussions with Spirit to ensure the sustainability of their programs. Please like, comment, follow #PoynterSpiritSale

Airbus has announced a deal with Spirit AeroSystems (formerly Boeing subsidiary) worth $559 million! As part of this deal, Airbus will take over certain loss-making activities at four plants in the US, Northern Ireland, France, and Morocco, which supply key parts for its A220 and A350 passenger jets. This agreement is expected to ensure stability of supply for Airbus' commercial aircraft programs, both operationally and financially. The European planemaker has committed to a more sustainable way forward, taking over minor activities carried out for the A220 in Wichita, Kansas, where Spirit is based. What does this mean for the industry? More reliable supply chain for Airbus' commercial aircraft Potential cost savings through optimized operations Competition heats up between Airbus and Boeing Stay tuned for updates on this developing story! #Airbus #SpiritAeroSystems #AerospaceIndustry #SupplyChainManagement

𝐁𝐨𝐞𝐢𝐧𝐠 𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐬 𝐄𝐱𝐢𝐭𝐢𝐧𝐠 𝐀𝐢𝐫𝐛𝐮𝐬 𝐂𝐨𝐦𝐩𝐨𝐧𝐞𝐧𝐭𝐬 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐢𝐧 𝐒𝐩𝐢𝐫𝐢𝐭 𝐀𝐞𝐫𝐨𝐒𝐲𝐬𝐭𝐞𝐦𝐬 𝐃𝐞𝐚𝐥 Boeing is contemplating divesting Spirit AeroSystems' Airbus-related operations amid acquisition talks, aiming to minimize supply chain overlap with its rival. Spirit's work for Airbus, accounting for 20% of its 2023 revenue, presents a potential conflict in Boeing's strategy to reintegrate the supplier it spun off two decades ago. This move comes as both manufacturers address quality and cost challenges, notably following a 737 MAX 9 incident. Boeing's acquisition could face regulatory scrutiny in Europe, where Airbus wields considerable influence. Discussions remain active, exploring various options for Spirit's Airbus business, including direct sales to Airbus or other interested parties. #finance #news #Boeing #Airbus #SpiritAeroSystems Source: https://lnkd.in/eExBifi2

- Boeing is considering shedding or reducing Spirit AeroSystems' ties to Airbus as it attempts to acquire the company. - The move is driven by complications arising from Spirit's work for Airbus, posing challenges to Boeing's acquisition. - Boeing aims to offload specific Spirit businesses supplying key Airbus components if a deal is reached. - Both Boeing and Airbus face quality problems and cost challenges, with Boeing dealing with a crisis related to a mid-air cabin panel blowout on a 737 MAX 9. - The potential deal is also influenced by a defensive strategy in case European regulators raise concerns about Airbus relying on Boeing for critical components. - Boeing doesn't want to own Spirit Aero's Airbus business, particularly the wing-making for the A220 jet in Belfast, Northern Ireland, which is not profitable. - Spirit Aero, valued at close to $3.8 billion, has held talks with Airbus about selling the Belfast plant. - Airbus may have limited options to block a sale but could exert pressure on Boeing through lobbying efforts. - Boeing is exploring other potential buyers for Spirit's Airbus business. - Spirit Aero has been trying to negotiate better prices from Airbus, particularly concerning the A220, as failure to do so could result in significant annual losses. - A Boeing-Spirit deal may hinge on resolving pricing issues with Airbus and clarifying the fate of remaining Airbus work. #PoynterSpiritSale

Recent earnings calls by industry leaders highlight the resentment over the delivery timelines from OEMs. With both Airbus and Boeing effectively sold out for narrowbody models until the end of the decade, demand exceeds supply, leading to increased prices. Market sources point to the Airbus A321XLR as an example, with reports suggesting a market price of around $80 million; several commentators have questioned the likelihood of Airbus being able to achieve an $80 million price tag. Cirium Ascend Consultancy Values based on a thematic 2.5% escalation of full-life base values for the A321XLR suggests the type will not achieve an $80 million value at delivery before 2033. Deals & Delivers report: https://lnkd.in/eKHJy8kh

Boeing's potential acquisition of Spirit AeroSystems represents a strategic move to address quality lapses and stabilize its supply chain. This acquisition would allow Boeing to regain control over its former aerostructures unit, which has been at the center of numerous quality issues affecting the 737 Max airliner. The decision to bring Spirit AeroSystems back under Boeing's umbrella comes at a critical time for both companies, as they face intense scrutiny over recent production faults and quality control challenges. For Boeing, acquiring Spirit AeroSystems presents an opportunity to address the problems that have plagued its key supplier and potentially enhance its supply chain resilience. However, the acquisition could also pose challenges, including added pressure on Boeing's management team and financial implications. On the other hand, for Spirit AeroSystems, being acquired by Boeing could provide much-needed stability and support in addressing its financial struggles. Overall, this potential acquisition underscores the importance of robust supply chain management in the aerospace industry. It highlights the interconnectedness of companies within the supply chain and the critical role of quality control in ensuring the safety and reliability of aircraft. The outcome of these discussions will not only impact the future of Boeing and Spirit AeroSystems but also have broader implications for the aerospace sector as a whole. #SupplyChainManagement #AirplaneManufacturing

𝐁𝐥𝐚𝐜𝐤𝐑𝐨𝐜𝐤 𝐀𝐜q𝐮𝐢𝐫𝐞𝐬 𝐏𝐫𝐞𝐪𝐢𝐧 𝐢𝐧 $𝟑.𝟐 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐃𝐞𝐚𝐥 𝐭𝐨 𝐁𝐨𝐥𝐬𝐭𝐞𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 𝐏𝐫𝐞𝐬𝐞𝐧𝐜𝐞 𝐓𝐡𝐞 𝐔𝐒𝐀 𝐋𝐞𝐚𝐝𝐞𝐫𝐬 𝟏 𝐉𝐮𝐥𝐲, 𝟐𝟎𝟐𝟒 𝐂𝐡𝐢𝐜𝐚𝐠𝐨, 𝐈𝐋 – Boeing acquires Spirit AeroSystems for a whopping $4.7 billion. The deal between two aviation giants has sent shockwaves through the aviation industry. This bold move comes at a time when Boeing is grappling with production delays, particularly following the 737 MAX grounding. But will this acquisition be the magic bullet Boeing needs to get its production lines humming again? 𝐑𝐞𝐚𝐝 𝐌𝐨𝐫𝐞🧾🧾🧾: https://lnkd.in/dfMDQyZV #BoeingAcquiresSpiritAeroSystems #AerospaceMergers #AviationIndustryNews #BoeingExpansion #SpiritAeroSystems #MergersAndAcquisitions #AerospaceGrowth #BoeingInvestment #SpiritAeroSystemsAcquisition #BoeingSpiritPartnership #IndustryEdge #BusinessInsights #MarketTrends #IndustryLeaders #InnovationHub #IndustryExperts #CompetitiveEdge #IndustryAnalysis #FutureofIndustry #IndustryUpdates

Using CB Insights data, we uncovered the 4 most important strategic priorities highlighted by Boeing’s acquisitions, investments, and partnerships since Q1 of 2022. The company has faced multiple high-profile incidents over the past 6 years which has Boeing embracing digitization, with a focus on improving manufacturing quality. #marketresearch #airlinetech #Boeing #manufacturing