Boeing, Spirit AeroSystems reach new supply agreement

Boeing (NYSE: BA) and Spirit have been working for some time a new long-term agreement. The newly announced deal amends the current agreement, which was extended last year. Richard Aboulafia, an aviation analyst with Virgina-based Teal Group, says the agreement is good in that it removes short-term uncertainties. While a longer-term deal would be good, getting pricing set in the interim is a beneficial step, he says. “If you look at this like a war, a cease fire is always a good thing,” he says. As for the question of variant aircraft, Aboulafia says it may be more of a function of timing in terms of where those aircraft are in their development.