Boeing is reportedly in talks to buy Spirit AeroSystems
Spirit AeroSystems was a major supplier that was part of Boeing until a 2005 sale and one that was also involved in an Alaska Airlines mid-air door plug blowout.
The deal would bring together thousands of workers and decades of shared expertise between the two companies.
Boeing is reportedly in talks to buy Spirit AeroSystems, a major supplier that was part of Boeing until a 2005 sale and one that was also involved in an Alaska Airlines mid-air door plug blowout. The deal would bring together thousands of workers and decades of shared expertise between the two companies. However, concerns about quality control issues at Spirit AeroSystems have disrupted production and delivery of popular Boeing jetliners including 737s and 787s.
Boeing is in preliminary talks to acquire Spirit AeroSystems
Spirit shares soared on the reports of possible deal with Boeing.
Shares had been down from January to Thursday's close due to a March 2019 fatal crash of a Boeing 737 Max and subsequent grounding of the jet, which led to quality control issues at Spirit AeroSystems.
Spirit makes major parts of several Boeing models, including fuselages for the 737 Max and ships them via rail from Wichita, Kansas to Boeing's factory in Washington state.
Boeing believes that reintegration of its manufacturing operations with Spirit AeroSystems would further strengthen aviation safety and improve quality.
Spirit has had its own series of quality control issues in recent years, including problems with five rivets done by Spirit AeroSystems which led to a door plug blowout on an Alaska Airlines flight.
Boeing's payments to Spirit last year were $60 million and will be $395 million in 2024 and 2025, indicating its motivation for the deal with Spirit.
Spirit AeroSystems revenue from Boeing was about $3.9 billion or just slightly less than what Boeing paid it last year as a major supplier.
Boeing ended 2019 with only $12.7 billion on its balance sheet, down from $14.6 billion the previous year after five years of net losses totaling $31.5 billion.
Accuracy
Boeing is in preliminary talks to buy Spirit AeroSystems
Spirit shares soared 15% on the reports of possible deal with Boeing.
Spirit makes major parts of several Boeing models, including fuselages for the 737 Max and ships them via rail from Wichita, Kansas to Boeing's factory in Washington state.
Spirit has had its own series of quality control issues in recent years, including problems with five rivets done by Spirit AeroSystems which led to a door plug blowout on an Alaska Airlines flight.
Spirit AeroSystems revenue from Boeing was about $3.9 billion or just slightly less than what Boeing paid it last year as a major supplier.
The NTSB has yet to assess blame for the January incident with the door plug blowing out aboard an Alaska Airlines flight but found that four bolts were missing that were needed to keep it in place, which was caused by problems with five rivets done by Spirit AeroSystems.
Spirit AeroSystems delivered fuselages to Boeing with work still needing to be done on them and used a non-standard manufacturing process when joining parts of the fuselages, causing a halt in deliveries of 737 Max jets.
A Spirit employee notified Boeing that two holes may not have been drilled exactly to Boeing's requirements, which required reworking about 50 planes that had not yet been delivered.
Spirit AeroSystems is the second largest customer for Airbus and it is unlikely that Boeing would be able hold onto its part of the business were it to reacquire Spirit.
Boeing's net losses totaled $31.5 billion after five years, making it one of the biggest financial losses in US corporate history.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author implies that Boeing's response to the quality lapses is a strategic move when it has not been stated as such by any official from Boeing or its executives. Secondly, the author uses sensationalism and emotional manipulation by stating that this would be a 'major strategic move for 737 maker', implying that it will have significant consequences on the company's future. Thirdly, the article is selectively reporting as it only mentions recent quality issues affecting the 737 Max airliner but does not provide any context or details about other quality lapses in Boeing's jets.
The author implies that Boeing's response to the quality lapses is a strategic move when it has not been stated as such by any official from Boeing or its executives.
The article uses sensationalism and emotional manipulation by stating that this would be a 'major strategic move for 737 maker', implying that it will have significant consequences on the company's future.
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that US regulators gave Boeing a ultimatum without providing any evidence or context for this claim. Secondly, the author commits a hasty generalization when they state that Spirit AeroSystems Holdings Inc., is at the center of recent quality issues affecting 737 Max airliner without providing any specific examples or data to support this statement. Lastly, the author uses inflammatory rhetoric by stating that Boeing's response to these quality lapses is coming into focus and it involves what stands to be its most consequential strategic move in years.
The article states that US regulators gave Boeing a ultimatum without providing any evidence or context for this claim. This is an example of an appeal to authority fallacy.
Bias
(75%)
The author uses the phrase 'most consequential strategic move in years' to describe Boeing's acquisition of Spirit AeroSystems Holdings Inc. This implies that the author is biased towards Boeing and its decision making.
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reunite assets that once sat under one roof, bringing together thousands of workers and decades of shared expertise,
Site
Conflicts
Of
Interest (50%)
Julie Johnsson has a conflict of interest with Boeing Co. and Spirit AeroSystems Holdings Inc.
Author
Conflicts
Of
Interest (50%)
Julie Johnsson has a conflict of interest on the topics Boeing and Spirit AeroSystems Holdings Inc. as she is reporting for Bloomberg News which covers both companies.
Thousands of workers and decades of shared expertise would be brought together by a deal between Boeing and Spirit AeroSystems
Investigators said a panel used in place of an extra emergency door had been removed at a Boeing factory to let Spirit workers fix damaged rivets, and bolts that help hold the panel in place were missing after the repair job. It is not clear who removed the bolts and failed to put them back
Spirit AeroSystems lost $616 million last year and hasn't turned a full-year profit since 2019
Accuracy
Spirit AeroSystems delivered fuselages to Boeing with work still needing to be done on them
Deception
(50%)
The article is deceptive in several ways. Firstly, the title implies that Boeing wants to buy back Spirit AeroSystems because of its troubled Max planes when in fact it's for other reasons such as quality control issues and financial gain. Secondly, the author uses sensationalism by stating that
Spirit AeroSystems makes major parts of several Boeing models including the fuselages for the 737 Max which are then shipped via rail.
The article states that Boeing sold Spirit in 2005 but now wants to buy it back.
Fallacies
(70%)
The article contains several fallacies. The author uses an appeal to authority by stating that Boeing is in talks to buy Spirit AeroSystems and citing sources without providing any evidence of the validity of these claims. Additionally, the author makes a false dilemma by suggesting that if Boeing were able to fix problems at Spirit AeroSystems, it would be able to return to profitability itself. This is not necessarily true as there may be other factors affecting Boeing's financial performance. The article also contains an example of inflammatory rhetoric with the author stating that
Bias
(80%)
The article reports that Boeing is in talks to buy Spirit AeroSystems, a major supplier that was part of Boeing until a 2005 sale and one that was also involved in an Alaska Airlines mid-air door plug blowout. The author mentions the quality control issues at Spirit AeroSystems and how they have been hurting Boeing's own output. This suggests a bias towards blaming Spirit for the problems with the 737 Max, rather than acknowledging that there may be other factors contributing to them.
The article mentions that the door plug blowout on an Alaska Airlines flight was caused by missing bolts from Boeing's factory. However, it also states that Spirit AeroSystems had problems with five rivets done by them which led to the removal of the bolts.
The author uses language such as 'quality control issues at Spirit may have played a part' and 'Spirit has had its own series of quality control issues in recent years', suggesting that they are responsible for the problems with Boeing.
Site
Conflicts
Of
Interest (50%)
There are multiple examples of conflicts of interest between Boeing and Spirit AeroSystems. The $900 million in cash for the sale of Spirit to Boeing in 2005 is a clear example of financial ties. Additionally, there were payments from Boeing to improve Spirit's quality and reliability issues which could be seen as an attempt at mitigating negative publicity or legal action against them. The fact that the article mentions both companies together also suggests personal relationships between their executives.
$60 million and $395 million payments from Boeing to improve Spirit's quality and reliability issues
The $900 million in cash for the sale of Spirit to Boeing in 2005
Author
Conflicts
Of
Interest (50%)
The author has a financial interest in the topic of Boeing and Spirit AeroSystems as they are discussing a potential acquisition. The author also mentions previous payments made by Boeing to improve quality control issues at Spirit AeroSystems.
$60 million and $395 million payments from Boeing to improve Spirit's quality and reliability issues
$900 million in cash for the sale of Spirit to Boeing in 2005
Boeing wants to buy back the company that builds the body of its troubled Max planes
Dell's shares are jumping higher today after the tech company reported fourth-quarter earnings that topped Wall Street's estimates. The company also announced plans to raise its dividend.
> Spirit AeroSystems (SPR) shares are moving higher amid reports Boeing (BA) is looking to buy back the company. Boeing spun off the operation nearly 20 years ago, in 2005.Ҍ
Yahoo Finance trending tickers include New York Community Bancorp (NYCB), Taiwan Semiconductor Manufacturing (TSM), and NVIDIA (NVDA).
Accuracy
Dell surges on earnings
Boeing is in preliminary talks to buy Spirit AeroSystems
Spirit shares soared 15% on the reports of possible deal with Boeing.
Shares had been down from January to Thursday's close due to a March 2019 fatal crash of a Boeing 737 Max and subsequent grounding of the jet, which led to quality control issues at Spirit AeroSystems.
Deception
(30%)
The article contains deceptive practices such as selective reporting and sensationalism. The author reports on Dell's earnings without providing any context or analysis of the company's performance beyond its stock price movement. Similarly, the article mentions Boeing's interest in buying back Spirit AeroSystems but does not provide any details about why this is significant or what it means for either company.
The author reports on Dell's earnings without providing any context or analysis of the company's performance beyond its stock price movement. This is an example of selective reporting and sensationalism.
Fallacies
(75%)
The article contains two fallacies: Appeal to Authority and Inflammatory Rhetoric. The first fallacy is when the author states that Dell's shares are jumping higher after reporting fourth-quarter earnings that topped Wall Street estimates without providing any evidence or context for this claim. This statement is an appeal to authority as it assumes that the company's financial performance must be accurate and reliable because it was reported by a reputable source, but there is no way of knowing if this information is true or not. The second fallacy occurs when the author mentions Boeing facing pressure surrounding its 737 Max planes without providing any evidence or context for this claim. This statement is inflammatory rhetoric as it creates an emotional response in the reader, but there is no way of knowing if this information is true or not.
Dell's shares are jumping higher today after the tech company reported fourth-quarter earnings that topped Wall Street estimates. The company also announced plans to raise its dividend.
Bias
(75%)
The article contains a mix of monetary and religious bias. The author mentions that Dell's shares are jumping higher after the company reported fourth-quarter earnings that topped Wall Street estimates and announced plans to raise its dividend. This implies an endorsement of capitalism and profit motives, which could be seen as biased towards a particular economic ideology.
Dell's shares are jumping higher after the company reported fourth-quarter earnings that topped Wall Street estimates.
Site
Conflicts
Of
Interest (50%)
The author of the article has a conflict of interest with Dell and Boeing as they are companies that Yahoo Finance Video covers regularly. The author also has a potential conflict of interest with Spirit AeroSystems as it is reportedly being eyed by Boeing.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topics Dell and Boeing as they are companies that Yahoo Finance Video covers regularly. The article also mentions Spirit AeroSystems which is another company covered by Yahoo Finance Video.
Spirit AeroSystems builds fuselages for Boeing 737 Max jetliners
Boeing is in preliminary talks to buy Spirit AeroSystems
Concerns about quality came to a head after the Jan. 5 blowout of a panel on an Alaska Airlines flight in January
Accuracy
Spirit AeroSystems builds fuselages for Boeing 737 Max jetliners, including the one that suffered a door-panel blowout on an Alaska Airlines flight in January
Buying Spirit back would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes
Deception
(80%)
The article is deceptive in several ways. Firstly, it states that Boeing used to own Spirit Aerosystems and now they are in talks to buy the company back. However, this statement is misleading as it implies that Boeing has already made a decision to purchase Spirit Aerosystems when no such decision has been made yet. Secondly, the article quotes David Calhoun stating that outsourcing probably went too far after the blowout incident but does not provide any context or evidence for this statement. This is deceptive as it implies that Calhoun had a change of heart about outsourcing when in reality he may have been forced to make this statement due to regulatory pressure. Lastly, the article states that buying Spirit back would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes but does not provide any evidence for this claim.
The sentence 'Boeing used to own Spirit Aerosystems' is deceptive as it implies that they have already made a decision to purchase the company back when no such decision has been made yet.
Fallacies
(75%)
The article contains several fallacies. The author uses an appeal to authority by citing the Federal Aviation Administration's increased oversight of Boeing and Spirit as evidence that there are safety concerns with their work. However, this does not necessarily mean that they have committed any wrongdoings or violated regulations. Additionally, the article contains a false dilemma fallacy when it presents outsourcing as either good or bad without providing any context for why one approach is better than the other. The author also uses inflammatory rhetoric by describing Spirit's quality problems as
The removal of bolts and failure to put them back during a repair job at Boeing factory
“We believe that the reintegration of Boeing and Spirit AeroSystems’ manufacturing operations would further strengthen aviation safety, improve quality and serve the interests of our customers, employees, and shareholders."
Bias
(85%)
The article reports that Boeing is in talks to buy Spirit AeroSystems. The author states that this move would improve plane quality and safety, which has come under increasing scrutiny by regulators, Congress and airlines. However the same author also mentions concerns about quality at Spirit Aerosystems which have disrupted production and delivery of popular Boeing jetliners including 737s and 787s. The article also states that buying Spirit back would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes, but the same author mentions problems at Spirit as having been criticized in the past. This contradicts any notion of improvement in quality or safety by bringing Spirit Aerosystems back into the fold.
The article reports that buying Spirit back would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes.
Site
Conflicts
Of
Interest (50%)
There are multiple examples of conflicts of interest in this article. The author is ABC News which has a financial stake in Boeing as it is one of their key suppliers.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of Boeing as they are in talks to buy Spirit AeroSystems. The article does not disclose this conflict.
