Spirit AeroSystems (NYSE:SPR) experienced a significant premarket surge of 14% on Wednesday, after signing a memorandum of agreement with Boeing (NYSE:NYSE:BA). The deal is designed to rectify production issues associated with Spirit's fuselages, which are used in Boeing's top-selling 737 Max jets.
The pact, reported by Dow Jones Newswires and signed on Wednesday morning at 07:54 ET (11:54 GMT), aims to increase production rates, improve quality, and enhance predictability. This move is seen as an attempt to fortify the relationship between the two firms and address manufacturing problems that have been plaguing Spirit, especially those connected to Boeing's 737 Max fuselages.
Patrick Shanahan, who has been serving as Spirit's interim CEO since last month, emphasized that aligning the production systems of both companies would bolster market responsiveness and ensure reliable delivery.
In parallel to this agreement, Spirit and Boeing have expanded inspections of some 737 Max models' front sections. This decision was prompted by the discovery of inaccurately drilled holes during the manufacturing process.
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