|Spirit lastly supplied 10000th fuselage for Boeing 737 series|
Spirit AeroSystems Inc, Boeing Co’s biggest supplier said on Friday that it would suspend production of 737 MAX parts beginning January 2020. Spirit AeroSystems, based in Witchita, Kansas, is the largest supplier of fuselage for Boeing 737 family and the Boeing 787 Dreamliner family. It also supplies fuselage to Airbus especially for the Airbus A220 Family along with cockpit for most of the manufacturer.
More than 60% of Spirit’s total revenue comes from Boeing especially from the Boeing 737 MAX components. The company employs 19,000 people as of 2019. It is the largest job provider in Kansas’ biggest city.
Last Monday Boeing said that it would halt the production of its popular 737 MAX series in January and can’t say when it might resume. As of today more than 400 produced MAX aircrafts are in Boeing storage facilities awating the deliveries after the ban will be lifted. The MAX was grounded in March after two fatal crashes that killed a total of 346 people.
Read more on : Boeing 737 MAX Production To Be Suspended In January 2020
Spirit AeroSystems Hpldings Inc. shares slid 2% on Friday after they announced to halt the production of 737 MAX fuselage.
Similarly, other Boeing suppliers are also suffering the same. General Electric Co.,which makes engine for the MAX series is under pressure and its share also slid 3% after the announcement.
The company said, “This suspension will have an adverse impact on Spirit’s business, financial condition, results of operations and cash flows.”
Spirit has been producing parts for the jet at a rate of 52 units per month, even after Boeing cut its production to around 40 aircraft per month earlier this year.
Spirit AeroSystems has major manufacturing plants in Subang, Malaysia, Kinston, North Carolina and Saint-Nazaire, France along with other facilities in several corners of the world.
The Boeing Co. had so far saved its suppliers from financial hit by continuing to buy parts from the suppliers in order to maintain its healthy supply chain and to avoid disruptions when the MAX returns to service.