Spirit AeroSystems has clarified that Boeing will pay for each 737 fuselage that Spirit produces in excess of Boeing’s production rate, helping maintain Spirit’s financial position as Boeing slashes output.
In a recent regulatory filing, Wichita-based Spirit says it will store excess fuselages, which will be considered delivered to Boeing.
The filing follows Spirit’s announcement several weeks ago that it will continue producing 737 airframes at a rate of 52 monthly despite Boeing slashing its production to 42 737s monthly.
“All B737 shipsets produced in excess of Boeing’s production rate… will be deemed to be delivered to Boeing… at Spirit’s facilities, which will trigger Boeing’s payment obligations for the excess shipments,” Spirit’s filing says.
Boeing trimmed production in response to the global grounding of the 737 Max, now entering its sixth week.
“If requested by Boeing, and [if] Spirit has available storage space, Spirit will maintain the excess shipsets at Spirit’s facilities,” Spirit’s filing says.
Spirit and Boeing agreed to the terms of the deal in a 12 April memorandum of understanding that expires on 1 May 2020.