Tradelines News

Get the latest news and updates on cross-border customs and international trade.

Boeing Supplier Spirit AeroSystems Surges on Tentative Deal in Parts Dispute

(Julie Johnsson – Bloomberg)

Spirit AeroSystems Holdings Inc. jumped the most in eight years after reaching an agreement with Boeing Co., its largest customer, that could end a sprawling contract dispute affecting every commercial jet in the planemaker’s product lineup.

The two companies signed a memorandum of understanding addressing “open commercial issues” on a range of Boeing programs, including the 737 Max and 787 Dreamliner, Spirit said in a statement Wednesday as it announced earnings. The manufacturers are still working to finalize the five-year pact.

The tentative accord takes a major step toward removing a question mark surrounding Spirit, which makes major air-frame components and relies on Boeing for 80 percent of sales. The pact also provides a boost to Chief Executive Officer Thomas Gentile, who joined Wichita, Kansas-based Spirit last year. Click here to read more.

Related: Boeing Nears Plane-Parts Deal with Supplier Spirit AeroSystems (WSJ)