Spirit AeroSystems forecasts a 90-day delay for full operations to resume even after Boeing's machinists come back to work.
Spirit Aero is now about 55-60 production units ahead of its Boeing customer, which has reached a tentative settlement with the International Association of Machinists and Aerospace Workers after a seven-week strike, says Spirit Aero CEO Jeff Turner.
While Boeing's final assembly centres around Seattle stayed idle since 6 September, Spirit Aero slashed working schedules and continued to produce major aircraft sections.
Spirit Aero has continued to ship 24 shipsets per month through the strike, or 60% less than full rate deliveries of 40 per month, says Turner, addressing market analysts on a third quarter earnings call.
Spirit Aero now plans to continue producing major structural sections for Boeing airliners at the slower rate until Boeing can "burn off" the accumulated inventory. Turner estimates that full rate production at Spirit Aero will resume by January or February,
The work slowdown is expected to cost Spirit Aero about $18 million in cumulative extra expenses, but some of that amount could be recovered.
"We do have the opportunity to discuss with Boeing the disruption costs created by the strike so I'm sure we'll have those discussions," Turner says.
Meanwhile, Spirit Aero has continued to make progress on the 787 programme despite the strike. The company has delivered the nose section for the fourth flight test aircraft and has met Boeing's assembly requirements for the fifth aircraft. Systems installation is continuing on aircraft six, seven and eight, Turner notes.
The work stoppage at Boeing, however, has dramatically slowed a planned production ramp-up for Spirit Aero and other 787 suppliers.
Spirit had planned to restart early fabrication on 787 fuselage barrels early in the fourth quarter, but has delayed that action while the strike continues.
"We're working closely with suppliers to make sure when we begin the ramp up both our internal and our supply base is ready to support that," Turner says.
Source: Air Transport Intelligence news
