Investors are taking notice Boeing BA Supplier acquisitions, Spirit AeroSystems Holdings Co., Ltd. SPRand whether it will impact the aircraft maker’s ongoing search for a new CEO.
What happened: The CEO search continues Dave CalhounPotential candidates to succeed him, who announced in March that he would step down by the end of the year, include current Spirit AeroSystems CEO Patrick Shanahan, Boeing COO Stephanie Pope and board chairman Steve Mollenkopf.
Reuters reported that Patrick Shanahan, nicknamed “Mr Fix It” at Boeing, is seen as a leading candidate for the CEO position.
Shanahan took over as CEO of Spirit Airlines in October with a goal of stabilizing the business and improving cash flow, but his turnaround plan was challenged in January after a 737 Max plane ruptured in mid-air.
In response to the accident, Spirit Airlines has pledged to invest in autonomous technology, increase training for its mechanics and strengthen its inspection processes.
See also: DOJ to prosecute Boeing over fatal crashes: Report
Why is this important?Spirit Airlines announced plans in May to lay off hundreds of employees in Wichita, Kansas, as part of a liquidity effort.
Despite those challenges, some industry observers believe Shanahan’s long ties to Boeing could affect his chances of winning the chief executive job.
Boeing’s acquisition of Spirit AeroSystems, which is expected to close by mid-2025, reflects broader changes within the company. Ernest Arvai,president Air Insight GroupHe noted that while Shanahan clearly has a deep connection to Boeing’s culture, new leadership may be needed to drive cultural change.
Price ActionBoeing shares have fallen more than 11% in the past 12 months. Investors IShares US Aerospace & Defense ETF it is and Invesco Aerospace & Defense ETF Paper.
As of last check on Tuesday, BA shares were trading at $185.90, down 0.43% in pre-market trading.
Disclaimer: This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
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