Spirit Boeing Agreement

"The new agreement brings stability to Boeing and Spirit and focuses on reducing costs and improving efficiency," said Kevin Schemm, Chief Financial Officer of Boeing Commercial Airplanes and Senior Vice President of Supply Chain Management, Finance and Business Operations. "They are at the heart of our success partnership efforts." WICHITA, Kan., September 25, 2017 /PRNewswire/ -- Spirit AeroSystems (NYSE: SPR) announced that it has entered into negotiations and final agreements with Boeing to resolve commercial issues by 2022 regarding the production of several Boeing programs, including the 737 MAX and 787 Dreamliner. Spirit AeroSystems announced that it has reached an agreement with Boeing on the 737 MAX production rate. The tariff agreement is based on several assumptions, including Boeing`s expected production rate and the successful return of 737 MAX to service. As previously announced, the 737 MAX contract agreement is a "requirement contract" between Boeing and Spirit, and the fare may change at any time. Spirit AeroSystems has again reduced its expected production of Boeing 737 hulls and other components in 2020 to just 72 shipments, while warning that it could violate financial agreements before the end of the year. On the Internet: www.spiritaero.com on Twitter: @SpiritAero "Given the substantial reduction in the production plan, Spirit could break the financial obligations arising from its credit contract in the fourth quarter of 2020 without any change or abandonment," a regulatory statement said. Spirit is in communication with its lenders and intends to cooperate quickly with them to obtain an adequate exemption from its alliances. Spirit said in the agreement that they will slowly resume production and boost deliveries later this year to reach a total of 216 Max ship parts delivered to Boeing in 2020. Under the agreement, Spirit will slowly resume production and boost deliveries later this year to reach a total of 216 MAX parts delivered to Boeing in 2020. Spirit does not expect a production rate of 52 boats per month by the end of 2022. The parties are continuing their negotiations on other conditions.

Also in January, Spirit said it had reached an agreement with Boeing to supply components for 216,737 in 2020. In May, Spirit reduced that number to 125 hulls, and on June 10, the number of others was reduced to no more than 104. (Reuters) - Spirit AeroSystems Holdings SPR. N said Tuesday that it had reached an agreement with Boeing Co BA. N 125,737 MAX PARTS in 2020, compared to the 216 it had previously announced.

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