Boeing Fraud Charge, Spirit Deal Lay Bare Scope of Crisis

Investors see silver lining, with recovery coming into view
Rival Airbus to take over some unprofitable Spirit assets

Boeing Co. agreed to buy back Spirit AeroSystems Holdings Inc. for $37.25 per share in an all-stock deal that values the supplier at $4.7 billion, reintegrating the company as the embattled US planemaker tries to fix is manufacturing defects. Bloomberg News’ Danny Lee discusses with Joumanna Bercetche on Horizons Middle East & Africa.Source: Bloomberg

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By Julie Johnsson, Siddharth Philip, and Allyson Versprille

July 1, 2024 at 10:42 AM UTC

Updated on

July 1, 2024 at 4:47 PM UTC

This article is for subscribers only.

Six months after a fuselage blowout threw Boeing Co. into crisis, the full weight of the legal and financial fallout from the near-catastrophic accident is bearing down on the embattled US planemaker.

The US Justice Department plans to charge Boeing with criminal fraud after finding the company violated a 2021 deferred-prosecution agreement tied to two previous, fatal crashes, Bloomberg News reported late on Sunday. Just hours later, Boeing announced a plan to buy back Spirit AeroSystems Holdings Inc., a supplier it spun off two decades ago, for $4.7 billion in a bid to improve its control over manufacturing quality.