Boeing has announced that it will pay Spirit Aerosystems up to $350 million to produce Boeing products under an advance payments agreement.
The agreement is intended to address several issues, including high inventory levels and lower operational cash flow at Spirit, along with a recent decrease in expected deliveries to Boeing and lingering effects of the recent strike by Boeing workers.
Spirit will have to repay 25 percent of the advance to Boeing on selected dates in 2026. Under the agreement, Spirit will produce Boeing products at the rates required by Boeing.
The agreement gives a boost to Spirit, where officials recently voiced “substantial doubt” about the company’s ability to continue as a going concern.
