Spirit AeroSystems, a key supplier for Boeing, is currently facing heightened scrutiny and legal challenges over alleged product quality issues. This increased attention comes in the wake of the Federal Aviation Administration’s (FAA) decision to enhance oversight of Boeing and its suppliers’ production and manufacturing operations. The decision followed an incident on January 5 involving an Alaska Airlines-operated 737-9 Max plane, where a door plug blew out midflight.
Compounding the company’s challenges, Spirit shareholders filed a lawsuit against the manufacturer last month. The legal action, stemming from a court document dated December 19, accuses Spirit of concealing “widespread and sustained quality failures” from investors. Alleged issues include the presence of debris in products, missing fasteners, peeling paint, and poor skin quality.
According to the lawsuit, these quality concerns date back to at least 2018, with the severity reportedly leading Boeing to place Spirit on probation. During this period, Spirit was not allowed to ship any products to Boeing without managerial approval. The suit claims that these quality issues were partly due to a company culture that favored production numbers and short-term financial outcomes over product quality. It also alleges insufficient staffing levels to maintain quality at demanded production rates.
More recent incidents cited in the lawsuit include a defect related to tail fin fittings on some 737 aircraft reported in April 2023, attributed to improper installation. Issues with the aft fuselage section of certain 737 models have also been reported. In response, Boeing provided manufacturing and engineering resources to Spirit, along with a cash advance to assist in the repair process.
Another concern raised in the lawsuit is the mis-drilling of fastener holes, as reported in August. An employee noted that holes, which should have been drilled straight, were drilled at an angle. While Spirit acknowledged the need for changes in its manufacturing process, specifics regarding these changes were not detailed in the lawsuit.
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