WICHITA, Kan. - Spirit AeroSystems has entered into a Memorandum of Agreement (MOA) with Boeing that amends Spirit's long-term supply agreement covering products for the Boeing 737, 747, 767, and 777 airliners. The new MOA establishes pricing terms for the period from April 1, 2014, through December 31, 2015, for recurring products under the two companies' supply agreement.
Prices will continue to be adjusted each year based on a quantity-based price adjustment formula described in the supply agreement, as amended by the MOA, whereby average per-unit prices are higher at lower volumes. Prices will also continue to be subject to other adjustments as provided under the supply agreement.
The MOA includes implementation of a production rate up to 47 Boeing 737s per month. In addition, the MOA includes suspension of 12 months of repayments of advances that Spirit received from Boeing on the 787 program.
The MOA also provides that, if Spirit and Boeing have not agreed on future pricing terms by the time that the current pricing terms expire, interim pricing terms will be determined according to December 2015 prices using the quantity-based price adjustment formula and specified annual escalation.
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