Spirit AeroSystems [NYSE: SPR] announced today that it reached an agreement with Boeing relating to the 737 MAX production rate. Under the agreement, Spirit will restart production slowly, ramping up deliveries throughout the year to reach a total of 216 MAX shipsets delivered to Boeing in 2020. Spirit does not expect to achieve a production rate of 52 shipsets per month until late 2022. The parties are continuing to negotiate other terms.
The rate agreement is based on several assumptions including Boeing's expected production rate and the successful return of the 737 MAX to service. As previously disclosed, the 737 MAX contractual agreement is a requirements contract between Boeing and Spirit and the rate may change at any time.