Senator: Concerns Remain On Defense Impact Of Boeing-Spirit Deal

FARNBOROUGH—Concerns remain about the impact of Boeing’s acquisition of Spirit AeroSystems on the supplier’s defense business, as the key focus of the OEM’s move remains on fixing issues with the commercial side.

As part of the $8.3 billion acquisition, Boeing will take over aerostructure work that Spirit has ongoing with other companies, including Bell, General Atomics, Lockheed Martin and Northrop Grumman. This accounts for about 2,000 jobs in Kansas alone, and Republican Sen. Jerry Moran from that state says he is worried about the impact.

“I want to make certain that that work continues in Kansas, but I particularly want to make certain that we do not do anything in this acquisition that diminishes the capability of meeting our defense needs nationwide, or globally, by any kind of pause, any kind of disruption in the supply chain,” Moran told reporters at the opening of the Farnborough Airshow.

Moran said he raised these concerns with top Pentagon officials the day before, including with U.S. Air Force Secretary Frank Kendall and Bill LaPlante, the undersecretary of defense for acquisition, technology and logistics.

Spirit’s defense sector accounted for $789 million in sales in 2023. Its ongoing programs include Northrop’s B-21 bomber, the Bell-Textron Future Long-Range Assault Aircraft and Lockheed Martin’s CH-53K. As part of the deal, Boeing said it is adopting a strategy that includes increasing its work as a subcontractor on military programs.

“I want to make certain that in this merger—and I don’t know the details of this acquisition—but I want to make certain that companies who do defense with Spirit have a place to do that work, either with Spirit in the future or in Kansas otherwise,” Moran said. “But, setting aside my Kansas hat, our country and the challenges we face and the supply chain issues that we are trying to meet needs to make sure there’s no loss of work—no loss of time in providing the contractual obligations to those other companies.”