Spirit Aero and Boeing agree to amend 787 agreement

Washington DC
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Spirit AeroSystems and Boeing have settled an agreement regarding certain claims over Spirit's 787-8 development in the month of December 2010.

Wichita, Kansas-based Spirit AeroSystems designs and builds the forward composite fuselage, engine pylons and leading edge wing components for the 787, whose first delivery is now nearly three years behind schedule due to various production and development challenges.

Boeing in December 2010 resumed 787 flight testing after a fire occurred onboard one of its test aircraft. ATI has previously reported that the airframer expects to complete a thorough assessment of the 787 schedule this month.

As of the third quarter of 2010, Spirit's 787 component and development production for the 787 accounted for 21% of the company's $28.2 billion backlog.

Spirit in a statement says it has developed "a fair and equitable framework" that reflects current financial realities of the 787 programme, and says formal amendments to the agreement should be complete during the first half of this year. The company states it expects to record any effects from the amended deal in its fourth quarter and full-year financial results scheduled for release 10 February.