Senior Editor

Jerry Siebenmark

Spirit AeroSystems, the primary supplier to Boeing’s 737 Max program, has been directed to lower its deliveries further in 2020 from the lingering effects of the global pandemic and Max grounding, according to a Spirit filing with the Securities and Exchange Commission (SEC) after the close of the market on Monday. “The B737 MAX grounding coupled with the Covid-19 pandemic is a challenging, dynamic, and evolving situation for Spirit,” the company said in Monday’s filing. “During this time, Spirit plans to work with Boeing to manage the B737 production system and supply chain.”

 


In a letter dated June 19, Boeing directed Spirit to reduce its 737 shipset deliveries from 125 to 72. A shipset comprises the fuselage, pylon, wing leading edges, thrust reverser, and engine nacelle. With the delivery target now set at 72 shipsets, Spirit already has delivered 35, leaving it with 37 more over the remainder of 2020. On June 10, Spirit <a href="https://www.ainonline.com/aviation-news/air-transport/2020-06-11/spirit-aero-pause-boeing-max-fuselage-production">warned</a> of an expected reduction of 737 shipsets based on a June 4 letter from Boeing but didn’t provide specifics.

 


“Given the substantial production plan reduction, Spirit could breach the financial covenants under its credit agreement in the fourth quarter of 2020 without an amendment or waiver,” the Wichita-based supplier said in the SEC filing. “Spirit is in communication with its lenders regarding this matter, and intends to work with them expeditiously to obtain appropriate relief from its covenants.”

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

Boeing Directs Spirit To Cut Max Deliveries Further

Spirit AeroSystems will now deliver 72 Max shipsets in 2020 instead of 125.

2024 Corporate Aviation Leadership Summit

Charles Alcock

Charlotte Bailey

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

Plaintiff claims UK company copied its Midnight design

Archer Sues eVTOL Rival Vertical for Patent Infringement

Kerry Lynch

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Approvals follow a week after Transport Canada signed off on the G500 and G600

Transport Canada Certifies Gulfstream G700, G800

New developments at airports including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

News and issues concerning the aviation charter and fractional-ownership industries and markets, including company announcements, regulations, new developments and labor issues.

UK manufacturing is displaying a mock-up of a four-seat Valo eVTOL in Miami this week

Vertical Pitches eVTOL Air Services for South Florida

Certifications had been pending for six years

Gulfstream G500, G600 Get Transport Canada Nod

Amy Wilder

Essential news and analysis on the defense aerospace business. Your trusted source for new and ongoing programs and requirements in military aircraft (manned and unmanned), engines, avionics, weapons and associated systems, including ground-based air defense.

Company showcases turboprops as cost-effective, high-endurance surveillance platforms

Daher Touts Kodiaks’ Public Safety Bonafides at Verticon

News and issues regarding all manner of civil and military rotorcraft and their powerplants, including helicopters, tilt rotors and unmanned air vehicles.

Wisk's Gen 6 eVTOL aircraft recently flew for the first time.

Boeing-backed Wisk Aero Says Autonomous Flight Is the Only Way for eVTOL Aircraft

News and developments about aircraft engines, including turbofan, turboprop, turboshaft and piston.

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

More In Aircraft

Archer Sues eVTOL Rival Vertical for Patent Infringement

Plaintiff claims UK company copied its Midnight design

Transport Canada Certifies Gulfstream G700, G800

Approvals follow a week after Transport Canada signed off on the G500 and G600

Vertical Pitches eVTOL Air Services for South Florida

UK manufacturing is displaying a mock-up of a four-seat Valo eVTOL in Miami this week

Gulfstream G500, G600 Get Transport Canada Nod

Certifications had been pending for six years

Daher Touts Kodiaks’ Public Safety Bonafides at Verticon

Company showcases turboprops as cost-effective, high-endurance surveillance platforms

Boeing-backed Wisk Aero Says Autonomous Flight Is the Only Way for eVTOL Aircraft

Wisk's Gen 6 eVTOL aircraft recently flew for the first time.

ATR Commits to Hybrid Regional Airliner Decision In 2029

EU-backed Clean Aviation projects are the foundation for the Evo program

Bizav Industry Billings Reach New Heights as Jets Surge

Business jet shipments were up 11% and billings by 16%, according to GAMA

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN