How a strike in Wichita can paralyze Boeing production and affect Airbus production

2023-06-26 02:04:07

Few on this side of the ocean will know how to locate Wichita on a map. But this American city in the State of Kansas is currently concentrating much of the attention of the aeronautical industry since the workers of one of its most important companies, Spirit AeroSystems, have started a strike that has stopped their activity since last Thursday and that has an almost global reach.

The workers of the plant grouped in the IAM (International Association of Machinists and Aerospace Workers) rejected the new employment contract offered to them by the management of the company and announced a strike starting at midnight on Friday the 23rd, which led to Spirit AeroSystems stopped its operations as of the first shift on Thursday of last week.

The suspension of the activity of this factory can have a very significant impact on Boeing production now that the American manufacturer was picking up cruising speed after the difficult years of the pandemic. In the United States there is even speculation that he could stop it. And it is that Spirit AeroSystems manufactures the fuselage for Boeing’s 737 MAX, its best-selling aircraft. In addition, he builds the forward fuselage, including the cockpit, for each of this company’s models, as well as a variety of other structural parts for the wings and engine pylons.

Given this wide variety of parts that the Wichita plant supplies it, Boeing’s production at its Renton and Everett factories could be halted if the protests continue, according to an analysis published in “The Seattle Times.” “(The upcoming strike) threatens Boeing’s production pace in these programs,” JPMorgan analyst Seth Seifman also said in a note. The last time Spirit workers went on strike, the protests lasted more than 50 days.

hard setback

For Boeing, a hypothetical stoppage of its production line would mean a new and hard setback, especially with regard to its 737 MAX and 787 models, which have already suffered major setbacks. In the case of the second, due to quality problems. And in the first, because to this is added that after the two accidents in 2018 and 2019 in which 347 people died, the model went through a deep crisis that affected the entire company. Boeing delivered 111 aircraft of this model in the first quarter of the year and its plans were to increase its production from 31 to 38 aircraft this month, although another problem with a part supplied precisely by Spirit AeroSystems had put this goal into question.

In response to the strike, Boeing issued a statement saying it is “monitoring the situation and supporting our valued supplier.” In an email sent to employees Thursday, Boeing Commercial Airplanes CEO Stan Deal asked workers to stay focused on building the planes and promised to update them as Spirit received more information.

most affected

But the Wichita labor dispute may also have repercussions on this side of the Atlantic. Spirit is also a supplier to Airbus. And while the European consortium isn’t as reliant as its American rival on Spirit, it also sources some parts for the A220 from the Kansas plant, including some systems, the strut-to-wing hardware and the aft fairing package. The Wichita-based manufacturer also supplies parts for Brazilian Embraer’s planes.