Boeing (BA) has confirmed discussions to reacquire its supplier Spirit AeroSystems (SPR), as the company works to improve the safety of its 737 MAX aircraft. This comes after Boeing faces a lawsuit related to a safety incident that occurred on an Alaska Airlines flight in January. Tony Bancroft, Portfolio Manager of the Gabelli Commercial Aerospace & Defense ETF (GCAD), joins Yahoo Finance Live to discuss the potential deal’s implications.
Bancroft says the acquisition “makes sense” long-term, though there is no immediate “silver bullet.” He notes integration challenges will likely arise as the companies combine cultures and workflows. However, with Boeing comprising 80% of Spirit’s current sales, Bancroft suggests that bringing manufacturing in-house to enhance oversight is “a natural way [for Boeing] to do business.”
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Editor’s note: This article was written by Angel Smith
