Company:Spirit AeroSystems

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Short description: American industrial company
Spirit AeroSystems Holdings, Inc.
FormerlyMid-Western Aircraft Systems Holdings, Inc.
TypePublic
  • NYSE: SPR (Class A)
  • Russell 1000 component
IndustryAerospace
Founded2005; 19 years ago (2005)
HeadquartersWichita, Kansas, U.S.
Key people
Pat Shanahan (President & CEO)
RevenueUS$5.0 billion (2022)
Number of employees
18,235 (2022)
Website{{{1}}}

Spirit AeroSystems Holdings, Inc., based in Wichita, Kansas, United States,[1] is an American aerostructure manufacturer, and is the world's largest first-tier aerostructures manufacturer. The company builds several important pieces of Boeing aircraft, including the fuselage of the 737, and 787, as well as the flight deck section of the fuselage of nearly all of Boeing airliners. Spirit also produces fuselage sections and front wing spars for the Airbus A350.[2] Spirit's main competition comes from Collins Aerospace, Kawasaki Heavy Industries, Leonardo, and Triumph Group.

History

Boeing B-29 Superfortress assembly line in Wichita (1944)

Spirit was formed when Boeing Commercial Airplanes sold its Wichita division to investment firm Onex Corporation in 2005. Originally founded as Stearman Aircraft in 1927 before being acquired by the United Aircraft and Transport Corporation in 1929, it was retained as a subsidiary of Boeing following the breakup of UATC in 1934 before being transformed into the Wichita division of the Boeing Airplane Company in 1941. The Wichita division was later responsible for the construction of several models of strategic bomber aircraft including the B-29 Superfortress, B-47 Stratojet, and B-52 Stratofortress. During World War II, employment peak at the Boeing Wichita division was 29,795 in December 1943.[3] From 1957 to 1963, starting with the B-52D variant a total of 467 B-52 aircraft were built in Wichita. Since the mid-1990s, the Wichita built B-52H models have been the only variant of the B-52 aircraft remaining in military service.

Boeing Defense, Space & Security retained its military business in Wichita, which lay on neighboring land, until Boeing sold most of those properties to Air Capital Flight Line.

Spirit also includes North American Aviation's former Tulsa and McAlester facilities (both in Oklahoma), as well as additional facilities in Kinston, NC, Prestwick, Scotland, Saint-Nazaire, France, and Subang, Malaysia.

In June 2016, Tom Gentile was named CEO, replacing Larry Lawson.[4]

Acquisitions

On January 31, 2006, BAE Systems announced it had agreed to sell its aerostructures business, based at Glasgow Prestwick Airport and Samlesbury Aerodrome, to Spirit.[5] The BAE unit, which was renamed Spirit AeroSystems (Europe) Ltd., is a major supplier to Raytheon (5%), Airbus (80%), and Boeing (15%). The transaction was completed on April 1, 2006. Spirit paid GBP 80 million for the business.[6]

On October 31, 2019, Spirit acquired Bombardier Aviation's aerostructures activities and aftermarket services operations in Northern Ireland (Short Brothers) and Morocco, and its aerostructures maintenance, repair and overhaul (MRO) facility in Dallas, with the acquisition completing a year later in October 2020.[7] The deal gives Spirit a bigger place in Airbus' supply chain, in particular with the wings for the Airbus A220 that are produced in the Belfast plant.[8]

Spirit AeroSystems

In 2010, 96% of Spirit's revenue came from its two largest customers: 85% of sales were from Boeing, 11% from Airbus. In 2009 these two customers represented 96% of sales for Spirit as well.[9]

After planning to take Spirit public,[10] at initial public offering on November 21, 2006, the firm's stock rose 10% on the first day.[11] In November 2006, Onex owned 58% of Spirit, which resulted in 92% of voting power, as its shares conferred "supervoting" power.[11] The chief architect of the Onex purchase of Spirit was Nigel S. Wright, who was later Chief of Staff for the Canadian Prime Minister until his resignation as part of an expense scandal. In August 2014 the Onex Group sold all of its remaining shares of Spirit. Over the course of the nine-year investment, the Onex Group received aggregate proceeds of approximately $3.2 billion on its initial $375 million investment.[12]

In 2021, the Spirit AeroSystems received a $75 million public subsidy from the Transportation Department,[13] despite having reported more than 45 billions in revenues in 2022.[14]

Former House Majority Leader Richard Gephardt (D-MO) serves as a labor consultant for Spirit and sits on its board of directors.[15][16]

Products

The Boeing 737 fuselage, built at Wichita's Spirit AeroSystems, being shipped to final assembly in the Seattle, Washington area.

Spirit's principal products are metal and composite structural sub-assemblies ("aerostructures") for Boeing, Airbus, and Bombardier airliners, as well as business aircraft (and their military variants).[17][18][19] It also provides various other aerospace products and services.[20]

Spirit's initial and continuing role has primarily been the manufacture of the Boeing 737 fuselage, and other components. As well as the nose and forward-cabin sections of most Boeing jetliners. The Boeing sub-assemblies are mostly built at Spirit's former Boeing-Wichita factory complex, near its headquarters in Wichita, Kansas. Spirit also manufactures major fuselage and/or wing sub-assemblies for current Airbus jetliners, mostly in its Tulsa, Oklahoma factory.[17][18][19]

Spirit also manufactures parts and sub-assemblies for various other aircraft manufacturers at various sites in the United States and the United Kingdom —including the fuselages of the Sikorsky CH-53K heavy-lift helicopter. It also produces or adapts various other defense-related aerospace products for other manufacturers.[17][19][20]

Facilities

Glasgow-Prestwick plant (2010)
Saint-Nazaire, France manufacturing plant (2015)
United States
  • Wichita, Kansas (headquarters & manufacturing plant) (ex-Stearman/Boeing)
  • Tulsa, Oklahoma (ex-North American/Rockwell/Boeing)
  • Kinston, North Carolina (manufacturing plant at Global TransPark)
United Kingdom
  • Belfast, Northern Ireland, United Kingdom (Short Brothers, ex-Bombardier)
  • Samlesbury, England, United Kingdom (small office on BAE Systems site)
  • Prestwick, Scotland, United Kingdom (ex-Scottish Aviation/BAe/BAE)
France
  • Saint-Nazaire, France (manufacturing plant)
Malaysia
  • Subang, Malaysia (manufacturing plant)
Russia
  • Moscow, Russia (joint venture)

Incidents and safety concerns

In December 2023, an employee of Spirit AeroSystems filled out a class action in federal court against the company, alleging that former employees repeatedly warned about safety problems and were told to cover up systematic quality control failures, undercount defects, records falsification and retaliation against employees raising safety concerns.[14]

On January 5, 2024, Alaska Airlines Flight 1282 experienced a midair emergency when a door plug blew out causing an uncontrolled decompression of the aircraft.[21] The fuselage and door plug are manufactured and initially assembled by Spirit AeroSystems, then shipped by train for final assembly at the Boeing Renton Factory.[22]

References

  1. ↑ "Spirit AeroSystems Holdings". http://fortune.com/fortune500/spirit-aerosystems-holdings/. 
  2. ↑ "Spirit AeroSystems - from cornfields to A350s". Flight Global. 2010. http://www.flightglobal.com/articles/2010/07/13/344199/spirit-aerosystems-from-cornfields-to-a350s.html. 
  3. ↑ "Boeing Wichita History". November 28, 2004. https://wingsoverkansas.com/legacy/a375/. 
  4. ↑ Johnsson, Julie. "Largest Boeing supplier selects a new CEO". http://www.sltrib.com/home/3984347-155/largest-boeing-supplier-selects-a-new. 
  5. ↑ "Onex' Spirit AeroSystems To Acquire BAE Systems Aerostructures." Official press release.
  6. ↑ "Spirit AeroSystems Completes Purchase of BAE Systems Aerostructures Unit". http://business.highbeam.com/1758/article-1G1-143950050/spirit-aerosystems-completes-purchase-bae-systems-aerostructures. 
  7. ↑ AeroSystems, Spirit. "Spirit AeroSystems Completes Acquisition of Select Assets of Bombardier Aerostructures and Aftermarket Services Businesses". https://www.spiritaero.com/pages/release/spirit-aerosystems-completes-acquisition-of-select-assets-of-bombardier-aerostructures-and-aftermarket-services-businesses/. 
  8. ↑ Campbell, John (October 31, 2019). "Bombardier NI operations sold to US firm". BBC News. https://www.bbc.com/news/uk-northern-ireland-50246299. 
  9. ↑ "https://www.sec.gov/Archives/edgar/data/1364885/000095012311016606/d78727e10vk.htm
  10. ↑ "Spirit AeroSystems Planning Initial Public Offering." The Wall Street Journal . June 30, 2006.
  11. ↑ 11.0 11.1 "UPDATE: Spirit Aero, AerCap Lift Off Post-IPO >SPR AER." The Wall Street Journal . November 21, 2006.
  12. ↑ "Onex Sells Remaining Stake in Spirit AeroSystems - Yahoo Finance". 7 August 2014. https://finance.yahoo.com/news/onex-sells-remaining-stake-spirit-230411953.html. 
  13. ↑ United States Department of Transportation (2021-09-11) (pdf). AVIATION MANUFACTURING JOBS PROTECTION (AMJP) PROGRAM - Applicants found eligible based on initial (July 13, 2021) submissions (Report). https://www.transportation.gov/sites/dot.gov/files/2021-09/20210910_AMJP_Eligible_Recipients.pdf. Retrieved 2024-01-23. 
  14. ↑ 14.0 14.1 "Boeing Supplier Ignored Warnings Of “Excessive Amount Of Defects,” Former Employees Allege" (in en). 2024-01-09. https://www.levernews.com/boeing-supplier-ignored-warnings-of-excessive-amount-of-defects-former-employees-allege/. 
  15. ↑ "Richard A. Gephardt Joins Onex Team" , Spirit Aero news release 2005-04-29 (PDF)
  16. ↑ "Spirit AeroSystems Holdings Inc (SPR) People". https://www.reuters.com/finance/stocks/companyOfficers?symbol=SPR&WTmodLOC=C4-Officers-5. 
  17. ↑ 17.0 17.1 17.2 "Proxy Statement Summary," April 28, 2021, Spirit AeroSystems, via Securities and Exchange Commission, retrieved March 31, 2023
  18. ↑ 18.0 18.1 "Spirit AeroSystems honoured as composites industry leader," November 18, 2021, Aerospace Manufacturing, retrieved March 31, 2023
  19. ↑ 19.0 19.1 19.2 Booker, Brakkton: "Spirit AeroSystems, A Major Supplier Of Boeing's 737 Max Jets, Lays Off 2,800 Staff," January 10, 2020, NPR, retrieved March 31, 2023
  20. ↑ 20.0 20.1 McCoy, Daniel: "Spirit partners to grow defense and commercial opportunities in U.K." March 29, 2023, Wichita Business Journal, retrieved March 31, 2023
  21. ↑ Gates, Dominic (January 5, 2024). "Alaska Airlines grounds MAX 9s after door plug blows out on Portland flight". The Seattle Times. https://www.seattletimes.com/business/180-on-alaska-airlines-flight-safe-and-scared-in-portland-after-window-blows/. 
  22. ↑ Insinna, Valerie; Hepher, Tim; Shepardson, David (January 7, 2024). "Spirit Aero made blowout part but Boeing has key role". https://www.reuters.com/business/aerospace-defense/spirit-aero-made-blowout-part-boeing-has-key-role-sources-2024-01-07/. 

External links



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