Fuselage manufacturer Spirit AeroSystems announced that Boeing directed the company yesterday to stop all 737 MAX deliveries to Boeing, effective January 1st 2020. The direct reason is Boeing’s announced temporary suspension of 737 MAX production. Accordingly, Spirit will suspend 737 MAX production beginning on January 1st.
According to Spirit, revenue from 737 aircraft components represents more than 50 percent of the company’s annual revenue. This suspension will have an adverse impact on its business, financial condition, results of operations and cash flows.
Spirit is expecting lower production levels in 2020.
About Spirit AeroSystems
Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers. Its company headquarters is in Wichita, Kansas. The company’s products include fuselages, pylons, nacelles and wing components.
Spirit AeroSystems is the first company directly affected by Boeing’s MAX production suspension, coming in January. Many companies and manufacturers depend on this single aircraft model to survive; because of the grounding, parts produced in the past months are frozen under the snow and put into storage, instead of making revenues for the companies.
Below is the article about Boeing’s decision:
Cover Image: NYTimes