As authorities probe Boeing’s safety protocols as part of their investigation into what went wrong with a flight that blew a hole midair last week, the role of a major supplier is also coming into focus: Spirit AeroSystems.
Alaska
Jet accident probe expands to include Boeing supplier
Spirit builds the fuselage, or main compartments, of the Boeing’s 737 Max 9 jets at its Wichita factory before shipping them for finishing by Boeing. Spirit said its work on the fuselage includes completing the initial installation of the panel that broke off the Alaska Airlines flight, although it’s not clear whether the doors were reinstalled later. The company says it is responsible for manufacturing about 70 percent of each Boeing 737 aircraft before it is delivered by rail to Boeing’s factory in Washington.
At the Boeing factory, the plane’s wings, engines and internal components are installed before delivery to airlines. Investigators will seek to learn more about the manufacturing process with Spirit’s input, an NTSB spokesman said.
The Alaska jet was almost brand new, and four experts have said initial evidence suggests a problem that cropped up when it was being built.
So far, public attention has fallen primarily on Boeing, one of only two major airliner manufacturers globally. The company has struggled to repair its reputation after design flaws contributed to two deadly plane crashes several years ago. In remarks to employees Tuesday at Boeing’s 737 factory in Renton, Wash., chief executive David Calhoun said the company’s approach to Friday’s incident would involve “acknowledging our mistake.”
“We’re going to approach it with 100% and complete transparency every step of the way,” he said. The company distributed a transcript to the media and declined to comment on what Calhoun considered the company’s mistake. “We are going to work with the NTSB who is investigating the accident itself to find out what the cause is.”
In the wake of the Alaska Airlines incident, Spirit has said little publicly but started holding safety meetings Monday with teams across the company, spokesman Joe Buccino said. The meetings were focused on quality and following processes, he said.
“As a company, we remain focused on the quality of each aircraft structure that leaves our facilities,” Spirit said in a statement Wednesday.
Spirit is far less well known than Boeing, its biggest customer. It was spun out of Boeing in 2005 and now makes parts for several manufacturers, including Airbus, Boeing’s main competitor. But Boeing and Spirit remain closely intertwined and, along with engine companies, it ranks among the aircraft giant’s most important suppliers.
“They’re not making 737s without Spirit,” said Ronald J. Epstein, an analyst at Bank of America.
Spirit has struggled in the past year with a string of manufacturing problems that have delayed deliveries of the Boeing 737 Max, a series of midsize single-aisle passenger planes. The troubles have prompted a shareholder lawsuit alleging it was slow to disclose the issues.
The in-flight fuselage breach last week has put the Kansas company under scrutiny at a time when analysts say it was trying to rebound after a pair of crashes that previously grounded the Boeing 737 Max and the coronavirus pandemic shook the aviation industry.
Spirit was not implicated in the problems that caused the crashes of two 737 Max jets in 2018 and 2019, killing 346 people. But in January 2020, with the planes still ordered out of service by aviation authorities around the world, Spirit sent layoff notices to about 2,800 employees at its Wichita plant. They said at the time that the move was “a necessary step given the uncertainty related to both the timing for resuming 737 MAX production.”
As the coronavirus spread, the company took another major blow. It reduced its global workforce by 6,600 employees and cut pay for salaried workers, according to a November 2020 securities filing detailing its response to the pandemic.
“They were hit harder than any company in the business,” because of its heavy dependence on the 737, said aerospace analyst Richard Aboulafia. Grounding the Max, and the pandemic, he said, were “the makings of a huge crisis.”
The company struggled through, shifting to producing sorely needed ventilators for covid-19 patients at one point and taking $75 million in federal aid. Despite struggles to rebuild its workforce, analysts said it had appeared to be on a good path heading into 2024. In October, the company switched chief executives, hiring longtime Boeing executive Pat Shanahan and striking new financial terms with its biggest customer.
Boeing declined to comment on its relationship with Spirit or its role in the installation of the door plug. Spirit declined to comment on its relationship with Boeing.
In a sign of the Spirit’s importance to their home state, Rep. Ron Estes (R-Kan.), who sits on a key tax committee and leads an aerospace-focused caucus, and Sen. Jerry Moran (R-Kan.), who serves on one of the top transportation committees in the chamber, have long have been public advocates for Spirit.
Moran said Tuesday that he had been briefed by NTSB chair Jennifer Homendy on the Alaska incident and would continue to monitor the investigation.
“For the thousands of Kansans who work in aviation, their jobs depend on passengers feeling safe to fly,” Moran wrote on X.
The Max was cleared to fly again in late 2020. In recent years Boeing has been racing to fill orders for the plane from airlines around the world. But the discovery of manufacturing problems last year slowed deliveries.
Last April, Spirit notified Boeing that it had discovered problems with fittings on the plane’s vertical fin, the company disclosed in SEC filings. It said the issue was not an immediate safety threat, a finding that was confirmed by Boeing and the Federal Aviation Administration.
Spirit spent months fixing 737s located at its production facility in Wichita, at a cost of more than $30 million, according to an SEC filing.
By August, then-chief executive Tom Gentile declared in a filing that the costly repair work was “behind us,” adding “we look forward to executing on our customer commitments for the rest of the year.”
The same month, Boeing and Spirit disclosed that improperly drilled holes had been found on a rear bulkhead, causing more disruptions. In both cases the problems were uncovered before the planes carried passengers and the FAA said they did not pose an immediate safety risk.
In a complaint filed in December, lawyers for Spirit shareholders alleged that the company had known about the problems much earlier than when they were disclosed to investors. It also alleges the company ignored employees’ warnings about defects. The lawsuit cites an internal complaint filed by a former inspector at Spirit in early 2022 who alleges the company’s products “frequently contained defects” due to its “rushed production process.”
Gentile and his attorney did not respond to requests for comment.
“The company is schedule-driven, not quality-driven,” said the former employee, who worked at Spirit for more than a decade and spoke to The Post on the condition of anonymity because he still works in the aviation industry.
Company managers repeatedly discouraged the former employee and other inspectors from logging defects, the former employee said. “I’ve been saying for years that it was just a matter of time before something was going to happen.”
The suit also cites the account of another former employee who said auditors discovered in 2019 that torque wrenches were miscalibrated, an issue that could lead to parts being over- or under-tightened, threatening their structural integrity.
The shareholders’ complaint alleges that Spirit suffered repeated quality failures because it had not hired enough workers to meet demand and “prioritized production numbers and short-term financial outcomes.”
Spirit has not filed a response to the allegations in the lawsuit, which is still in its early stages. Buccino said the company disputes the allegations.
“Spirit strongly disagrees with the assertions made by plaintiffs in the amended complaint and intends to vigorously defend against the claims,” he said. “Spirit will not comment further as to the pending litigation.”
The aviation industry has struggled across the board with labor issues, seeing waves of job cuts at the beginning of the pandemic before scrambling to rehire workers as demand bounced back much quicker than many had expected. The result at a manufacturer like Spirit has been a loss of experienced employees who can help get new hires up to speed, analyst Aboulafia said, and which could contribute to quality problems.
In June, Spirit manufacturing employees, who had agreed to continue working under an old contract during the pandemic, briefly went on strike. The two sides soon reached a deal on wages, drug coverage and overtime, but company executives said the walkout caused another disruption to production.
Gentile was replaced as chief executive in October, and the company’s board turned to Shanahan to help chart the company’s path forward. He had worked at Boeing for three decades and served as deputy secretary of defense during the Trump administration. Shanahan quickly made a deal with Boeing to help stabilize the company’s finances and address manufacturing problems. Aboulafia said he was the right person to step into the role because “he can read reality to Boeing.”
A month into the job, Shanahan was clear about the challenges the company had faced. In a November earnings call, he used a military term to describe his approach to the job, saying he was at the company to “take charge and move out.”
“I recognize we have disappointed our stakeholders,” Shanahan said. “We want to restore confidence in the company.”
Alaska
Mat-Su Initial Attack Responding to Fire in Flat Lake
Alaska
Opinion: Alaska’s $10,000 question: Leave or stay?
This June, two very different offers reach Alaska families, and both amount to the same thing: $10,000. The difference is everything.
Bill Walker, running for governor, would hand every eligible Alaskan a one-time $10,000 check and then end the Permanent Fund dividend for good. Ask one question: Where does his $10,000 come from?
It comes from the Permanent Fund, the people’s own money and the savings Alaskans built for their children. Walker would spend that endowment once to pay Alaskans to give up the yearly dividend forever.
Think about what that does. It cancels the annual check that gives a family a reason to keep an Alaska address and replaces it with a single payout. You hand people their own savings, call it a gift and cut the tie that held them here in the same motion. It is the oldest mistake in governing money: raid what you have saved to buy a moment’s applause and call the spending generosity.
A plan that spends the people’s savings to send the people away is not bold. It is foolish.
Now consider the other $10,000. Through Alaska Housing Finance Corp., the state offers families up to $10,000 to build a new, energy-efficient home. AHFC raids nothing. It earns its own way. Over the years, it has returned more than $2 billion to the state treasury, and it spends some of that income the way any good business does: to win a customer.
Here, the customer is an Alaskan who wants to own a home, put down roots and stay.
That is the oldest sound move in business: Invest a little of what you earn to bring in someone who stays. The homeowner remains, the community gains a family and the corporation keeps earning. The money spent comes back. A plan that puts earnings to work to bring people home is not charity. It is clever.
Same amount. Opposite source. Opposite wisdom. One spends savings; the other spends earnings. One pays Alaskans to leave; the other pays them to stay. One empties the state; the other fills it.
This Homeownership Month, the choice is the size of a single check, and the whole question is where the check comes from and what it asks of you. Ten thousand dollars of your own fund, to wave you goodbye. Or $10,000, earned and reinvested, to help you stay and build.
Evan Swensen is the publisher of Publication Consultants in Anchorage and the author of “What’s the Money For: A Permanent Fund Mortgage Proposal.”
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Alaska
Alaska Sen. Dan Sullivan’s primary challenger who has the same name is eligible for ballot, judge rules
A man with the same name and party affiliation as Alaska Republican U.S. Sen. Dan Sullivan is eligible to challenge the senator in the August primary, a judge ruled Friday.
Superior Court Judge Thomas Matthews’ ruling overturns a June 15 decision by Division of Elections Director Carol Beecher to disqualify the challenger and keep him off the primary ballot. Matthews’ ruling can be appealed to the state Supreme Court.
Attorneys for the state have said Tuesday is the deadline for a final ruling so that ballots for the Aug. 18 primary can be printed.
The judge ruled that the division’s decision to exclude Dan J. Sullivan because his candidacy was not “in good faith” was not based on the Constitution, Alaska law or the division’s own regulations. The retired teacher from the small fishing community of Petersburg filed to challenge the incumbent.
“Instead, the decision was based upon a new, previously unstated, ‘good faith’ criteria,” the judge wrote.
The division is appealing the decision, Sam Curtis, a spokesperson with the state Department of Law, said by email Saturday. Jeffrey Robinson, an attorney for Dan J. Sullivan, said in an email he expected the division to appeal and couldn’t comment until the Alaska Supreme Court rules on the case.
The controversy over the two Dan Sullivans has underscored the stakes involved in the incumbent’s reelection campaign. The Alaska race is one of about half a dozen U.S. Senate races expected to be highly competitive in the fall, and the seat is one Democrats are trying to flip in their efforts to try to regain the majority. But it’s expected to be an uphill battle in a state that President Trump won by 13 points in 2024.
The senator and allies, including the National Republican Senatorial Committee, have condemned the challenger’s efforts to join the race, arguing his presence could confuse voters. Republican Lt. Gov. Nancy Dahlstrom earlier this month opened an investigation into the non-Senator Sullivan’s candidacy.
Under Alaska’s election system, the top four candidates from the primary, regardless of party, move on to the ranked-choice November general election.
The senator has accused the challenger Sullivan of working with Democrats and the campaign of Democratic former U.S. Rep. Mary Peltola — who is considered the senator’s main opponent — to cause confusion and boost Peltola’s chances. The sitting senator brought the situation to reporters’ attention at the Capitol earlier this month, accusing Democrats of being “complicit in trying to trick Alaskans” to “rig an election in their favor.”
Peltola’s campaign and state Democrats have denied the allegation, as has the challenger.
Sen. Sullivan and Peltola are the highest-profile candidates in the crowded race and the only ones to report raising any money.
Beecher has said she determined the challenger Sullivan is not eligible to run because his candidacy was not filed in good faith and instead was done with an intent to confuse voters. She said he had registered to vote as Daniel J. Sullivan Jr. and, in conjunction with his candidacy, changed his party affiliation to Republican. She also cited similarities between his campaign website and the senator’s, and his work with a consultant whose clients have included some Democrats. She did not mention finding any evidence of alleged coordination.
In arguing to keep the challenger disqualified, attorneys for the state pushed back on suggestions the ballot could be designed in a way to reduce voter confusion over two candidates with the same name and party running for the same office.
“The Constitution does not require States to place a sham candidate on the ballot and then attempt to mitigate the damage through design choices,” attorney Rachel Witty, with the Alaska Department of Law, and outside attorneys Christopher Murray and Michael Francisco wrote in court filings.
Attorneys for the challenger Sullivan argued that the Constitution lays out three exclusive qualifications for the Senate, addressing only age, citizenship and residency. They said Beecher lacked the legal authority to boot their client off the ballot.
The challenger Sullivan has said that sharing a name and party affiliation with the incumbent gave him “an instant megaphone.” But the 69-year-old retired teacher and former U.S. Forest Service employee said he had considered a run for some time and had grown frustrated with the senator.
He initially was certified on the state’s candidate list as Dan J. Sullivan, with the senator listed as Dan S. Sullivan and identified as the incumbent.
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