👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

Republican senator urges defense firm CEOs to safeguard Spirit work

Published 07/22/2024, 05:35 AM
Updated 07/22/2024, 05:40 AM
© Reuters. FILE PHOTO: A Boeing 737 MAX-10 lands over the Spirit AeroSystems logo during a flying display at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 22, 2023. REUTERS/Benoit Tessier/File Photo
BA
-
NOC
-
LMT
-
TXT
-
SPR
-

By David Shepardson and Allison Lampert

FARNBOROUGH, England (Reuters) - U.S. Senator Jerry Moran is urging the CEOs of major defense companies to ensure that work performed by Spirit AeroSystems (NYSE:SPR) will not be disrupted by Boeing (NYSE:BA)'s planned acquisition of the Kansas-based supplier.

    Moran, a Kansas Republican who is the ranking member of the Senate Commerce aviation subcommittee, told Reuters he had spoken to the CEOs of Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC), Airbus, General Atomics and Textron (NYSE:TXT) over safeguarding future defense work at the aero-structures giant.

"I want to make certain that the work continues in Kansas," Moran said, adding he wants to "make sure that we do not do anything in this acquisition that diminishes the capability of meeting our defense needs."

Boeing is set to acquire most of Spirit as the U.S. planemaker wrestles with a quality crisis that has put it under heightened legal and regulatory scrutiny after a door plug blew out of a near new 737 MAX 9 in mid air on Jan. 5.

The blowout has created ripple effects on airlines, suppliers and passengers, and is creating uncertainty in states like Kansas where aerospace is a key part of the economy.

"We have a lot of eggs in the Boeing basket," Moran said, noting there are 2,000 people at Spirit that focus on defense work.

Boeing Defense CEO Ted Colbert said in a brief interview that it was not uncommon for one major defense firm to provide parts for another company.

But Moran is seeking certainty. "We can't afford other supply chain problems," Moran added. "This work needs to be done - and there can't be a gap."

Moran said in the short-term he believes the work will continue but "in the long term is there some other company that arises that can work for a multitude of companies."

He's also reached out to top U.S. defense officials including the Air Force secretary and Pentagon acquisition chief to raise the issue.

© Reuters. FILE PHOTO: A Boeing 737 MAX-10 lands over the Spirit AeroSystems logo during a flying display at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 22, 2023. REUTERS/Benoit Tessier/File Photo

Moran and Senator Jeanne Shaheen are leading a delegation of seven senators who are attending the Farnborough Airshow. The lawmakers are also seeking to convince aerospace firms to invest in their home states.

Kansas Governor Laura Kelly noted the state is home to 450 aerospace suppliers that employ about 100,000 workers and generate $20 billion in annual economic output.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.