Spirit says Boeing spare parts ‘small component of business’

Spirit AeroSystems said Friday the loss of commercial aircraft spare parts work for Boeing should have a minimal effect on its overall business.

“Financially, this is small component of our business,” Spirit said in a statement to The Eagle. “While our role is changing, airlines will continue to need the parts that Spirit manufactures.”

Boeing on Friday confirmed to The Eagle that Spirit’s contract to make and sell spare parts using Boeing intellectual property expired Feb. 29 and would not be renewed.

Boeing said in an e-mailed statement that it began five years ago notification to those suppliers with affected contracts, after it made a decision “to stop granting new Boeing Proprietary Parts license agreements and to stop renewing existing licenses, absent a compelling business case for Boeing or specific contractual commitment to the contrary.”

“Boeing is best positioned to support our customers with aftermarket parts and repair,” the statement said. “We’re providing that support directly to customers instead of licensing suppliers to do it, in a timely manner that supports their operations and at market competitive prices.”

A Boeing spokesman said in an e-mail to The Eagle that the company would not comment on what kind and how many spare parts Spirit made under the agreement with Boeing.

“We do not discuss the specific terms of our contracts,” Boeing Commercial Airplanes spokesman Doug Alder Jr. said in the e-mail.

Spirit acknowledged in its statement that Boeing’s move could affect employment levels, which total about 11,000 in Wichita, but any layoffs would likely be small.

“As a business, we frequently have changes in our work scope, and our headcount adjusts accordingly — this is a small adjustment,” Spirit said in the statement.

Spirit manufactures major parts of all Boeing airplanes — parts of wings and fuselages — including 70 percent of Boeing’s best-selling 737 narrowbody jet.

This story was originally published April 1, 2016 at 11:00 AM with the headline "Spirit says Boeing spare parts ‘small component of business’."