Boeing Plans to Purchase Wichita-Based Supplier Spirit AeroSystems for $4.7 Billion
ARLINGTON, Va. (AP) — Boeing has announced plans to acquire key supplier Spirit AeroSystems for $4.7 billion. It says the move will improve plane quality and safety. Boeing previously owned Wichita-based Spirit, and the purchase would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes. That approach has been criticized as problems at Spirit disrupted production and delivery of popular Boeing jetliners. Concerns about safety came to a head after the January blowout of a panel on an Alaska Airlines 737 Max 9 at 16,000 feet over Oregon.
(-Additional Reporting-)
ARLINGTON, Va. (AP) — Boeing announced plans to acquire key supplier Spirit AeroSystems for $4.7 billion, a move that it says will improve plane quality and safety amid increasing scrutiny by Congress, airlines and the Department of Justice. Boeing previously owned Spirit, and the purchase would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes. That approach has been criticized as problems at Spirit disrupted production and delivery of popular Boeing jetliners, including 737s and 787s.
“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” Boeing President and CEO Dave Calhoun said in a statement late Sunday.
Concerns about safety came to a head after the January 5 blowout of a panel on an Alaska Airlines 737 Max 9 at 16,000 feet over Oregon. The Federal Aviation Administration soon after announced increased oversight of Boeing and Spirit, which supplied the fuselage for the plane.
No one was seriously injured in the Alaska Airlines door incident, which terrified passengers, but Boeing is under pressure from the U.S. Justice Department to plead guilty to criminal fraud in connection with two deadly plane crashes involving its 737 Max jetliners more than five years ago. Boeing has until the end of the week to accept or reject the offer, which includes the giant aerospace company agreeing to an independent monitor who would oversee its compliance with anti-fraud laws, according to several people who heard federal prosecutors detail a proposed offer Sunday.
The Justice Department said in a May court filing that Boeing violated terms of a 2021 settlement allowing the company to avoid prosecution for actions leading up to the crashes in Ethiopia and Indonesia, which killed 346 people. Those crashes were blamed on a faulty sensor in a flight-control system and the investigation is separate from the probe of the more recent Alaska Airlines blowout, which involved Spirit.
Boeing spun off Spirit, which is based in Wichita, Kansas, and not related to Spirit Airlines, in 2005. In recent years, quality problems have mounted, including fuselage panels that didn’t fit together precisely enough and holes that were improperly drilled.
Spirit removed its CEO in October and replaced him with Patrick Shanahan, a former Boeing executive who served as acting defense secretary in the Trump administration.
Things seemed to be going more smoothly until the Alaska Airlines incident. Investigators said a panel used in place of an extra emergency door had been removed at a Boeing factory to let Spirit workers fix damaged rivets, and bolts that help hold the panel in place were missing after the repair job. It is not clear who removed the bolts and failed to put them back.
Spirit said in May that it was laying off about 450 workers at its Wichita plant because of a production slowdown since the January incident. Its total workforce was just over 13,000 people. “Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems,” Shanahan said.
The acquisition's equity value of $4.7 billion is $37.25 per share, while the total value of the deal is around $8.3 billion, which includes Spirit’s last reported net debt, the aerospace company said.
Boeing common stock will be exchanged for Spirit shares according to a variable formula that depends on a weighted average of the share price over a 15-trading-day period ending on the second day before the deal closes, Boeing said.
The companies also announced an agreement with Airbus to negotiate the purchase of Spirit assets involved with programs operated by the European aerospace firm. The Airbus agreement is set to commence when Boeing's acquisition of Spirit is completed, the two U.S. companies said.
(–Related–)
Spirit AeroSystems Pushes on with Work in Wake of Boeing Announcement
WICHITA, Kan. (KMUW) – Spirit AeroSystems was operating as usual Monday following an announcement it will be purchased by Boeing. Officials from both companies announced the agreement late Sunday night. Boeing will use stock to finance the nearly $5 billion dollar purchase. Spirit officials said they were meeting with employees Monday to share information about the proposed deal. Company spokesman Joe Buccino told KMUW that Spirit would "...continue with business as usual until this transaction closes, which we anticipate to be the middle of next year.” Boeing has been in talks for months to buy Spirit. After a series of manufacturing problems in its 737 program at Spirit, Boeing wants tighter control of its supply chain. Spirit says it's working with Airbus to acquire the parts of Spirit that do work for the European plane maker.
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Kansas Doctors Challenging New Abortion Law
UNDATED (KNS) – Kansas doctors are challenging a new law requiring them to ask patients why they’re getting an abortion. The Kansas News Service reports that doctors say the Kansas health department is not enforcing the law for now. Anti-abortion groups support the new law. But doctors say asking patients why they’re ending their pregnancies… and reporting their answers to state officials for public release… is invasive and unconstitutional. Women can technically refuse to answer the question, but lawmakers decided against informing them of their right to refuse. A Johnson County judge said doctors can add their legal challenge to the new law to an ongoing lawsuit against a handful of older abortion restrictions. Lawyers for the state sought to block that from happening. Two other new laws now in effect increase funding for anti-abortion groups and make it a felony to coerce someone to get an abortion.
(–Additional reporting–)
New Abortion Laws Take Effect in Kansas Monday
WICHITA, Kan. (KNS) — Three new abortion-related laws are taking effect in Kansas. One of them requires abortion providers to ask patients why they are getting an abortion and to report the answers to the state. Backers of the law say the data could be used to reduce abortion rates. But abortion providers say collecting the information is invasive and medically irrelevant. They’re asking a judge to block the law from taking effect. A hearing on their request is set for this (MON) morning. Two other abortion-related laws are also taking effect. One increases funding for crisis pregnancy centers. The other law makes it easier to prosecute people for coercing someone to get an abortion.
What other laws are taking effect in Kansas on this July 1st? The Kansas Reflector takes a look.
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Appeals Court Allows Part of Biden Student Loan Repayment Plan to Go Forward
WASHINGTON (AP) — A federal appeals court has allowed the U.S. Education Department to move ahead with a plan to lower monthly payments for millions of student loan borrowers, putting on hold a ruling last week by a lower court.
The ruling from the 10th U.S. Circuit Court of Appeals puts back on track a central part of President Joe Biden's efforts to address student debt — a rule that lowers from 10% of discretionary income to 5% the amount that some borrowers qualifying for a repayment plan need to pay.
The reduced payment threshold was set to take effect July 1, but federal judges in Kansas and Missouri last week blocked much of the administration’s student loan repayment plan in two separate rulings. The appeals court ruling on Sunday means the department can move ahead with the reduced payments already calculated.
The rulings have created a difficult environment for borrowers to navigate, said Persis Yu, deputy executive director of the Student Borrower Protection Center, which advocates for eliminating student debt. The stay granted by the 10th Circuit is temporary and subject to appeal, Yu said, leaving many borrowers in the dark about future financial obligations.
“Borrowers are having to make decisions right now about their financial lives, and they don't know the very basic information that they need in order to make informed decisions,” Yu said.
The Biden administration created the SAVE plan last year to replace other existing income-based repayment plans offered by the federal government. It allowed many to qualify for lower payments, and forgiveness was granted to borrowers who had made payments for at least 10 years and originally borrowed $12,000 or less.
The appeals court ruling does not impact the injunction issued by a federal judge in Missouri, which prevents the Education Department from forgiving loan balances going forward.
The injunctions are the result of lawsuits from Republican-led states seeking to invalidate the Biden administration's entire loan forgiveness program, which was first available to borrowers in the summer of 2023, and at least 150,000 have had their loans cancelled. The suing states argued that the administration's plan was a workaround after the Supreme Court struck down the original plan for student loan forgiveness earlier that year.
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Two Colorado Residents Die in Northwest Kansas Plane Crash
HOXIE, Kan. (AP/KPR) — Authorities are investigating the crash of a vintage biplane in northwestern Kansas that killed two Colorado residents. The Kansas Highway Patrol says the 1934 WACO YKC single-engine biplane crashed into a field around 10 miles north of Hoxie in Sheridan County Sunday evening. The Patrol identified the pilot as 78-year-old David Allen, of Elbert, Colorado, and the passenger as 79-year-old Jeanne Allen. Both died at the scene. The Federal Aviation Administration and National Transportation Safety Board are in charge of the investigation.
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Rainy, Stormy Weather in Northeast Kansas this Morning; Sunny and Hot Weather by this Afternoon
LAWRENCE, Kan. (KPR) — Rainy, stormy weather has been moving across northeast and east-central Kansas, but sunny, hot and humid weather is expected by the afternoon. Heavy rains have fallen in many areas. A Heat Advisory will take effect Monday and last through Tuesday night.
Get the latest weather form the National Weather Service.
(-Related-)
Experts: Kansas Will Face Higher Temps for More Days Due to Climate Change
LAWRENCE, Kan. (KNS) — Federal agencies say Kansans are facing temperatures above 100 degrees more often - and will continue to do so - because of climate change. The Kansas News Service reports that thousands of Kansans sweated through 100-degree heat last week. Salina hit 105. Smith Center 110. In recent decades, Kansas averaged less than 10 days per year above 100 degrees. But the latest National Climate Assessment from federal agencies says by 2050, most of Kansas is projected to see an extra 10 days above 100 degrees each summer. That’s under a "middle-of-the-road" climate change scenario. Extreme scenarios predict 40 extra days of such heat in Kansas by the end of the century.
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UPDATE: Endangered Persons Advisory Canceled for Missing Haskell County Mother and Children
HASKELL COUNTY, Kan. (KPR) – The Haskell County Sheriff’s Office has notified the Kansas Bureau of Investigation (KBI) that deputies have made contact with Martha Unger, and verified her safety and the safety of her daughters. Therefore, the endangered persons advisory has been canceled.
(-Earlier Reporting-)
Kansas Authorities: Missing Mom and 2 Daughters May Have Been Coerced to Travel to Mexico
HASKELL COUNTY, Kan. (KSNW) — Investigators say a Kansas mother and her two young daughters, missing since Friday, may have been coerced into traveling to Mexico. The Kansas Bureau of Investigation has issued an endangered persons advisory for 23-year-old Martha Unger and her two daughters, 2-year-old Madilynn Grace and 1-year-old Haylie Faith. All three were reported missing from their Haskell County home Friday night. KSNW TV reports that the mother and daughters may have been coerced into traveling to Mexico to a religious rehabilitation facility.
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BNSF Lays Off 31 Employees in Topeka; More than 80 Were Laid Off in February
TOPEKA, Kan. (WIBW) - Burlington Northern Santa Fe Railroad has laid off 31 employees in Topeka. WIBW TV reports that BNSF laid off 25 electricians and six others on Friday. These latest layoffs were confirmed Friday. In February, BNSF laid off more than 80 Topeka area employees. The company blames the layoffs on reduced coal production and demand. BNSF officials are offering incentives and preferential hiring to employees who are willing to relocate to other areas.
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Kansas Turnpike Transitions to Cashless Tolling July 1
WICHITA, Kan. (KPR) — As of July 1st, the Kansas Turnpike Authority has done away with ticket-takers at toll booths and has transitioned to "cashless tolling." This means drivers will no longer need to stop to pay their tolls. For motorists with a K-Tag, nothing will change. For those without a K-Tag, a photo will be taken of the driver, the driver's car and license tag and a bill for the toll will be sent in the mail. The KTA says there may be some confusion with customers as this transition takes place.
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KU Medical Center Researchers Seeking Solutions for Food Insecurity in Kansas
KANSAS CITY, Kan. (KNS) – With a grant from the Sunflower Foundation, researchers at the University of Kansas Medical Center are working to come up with solutions to food insecurity in Kansas. The Kansas News Service reports that Kristina Bridges is one of the researchers working on the project. She says food insecurity is linked to preventable conditions like type-two diabetes and poor mental health. So they’ve partnered with health centers across Kansas in areas that are defined as food deserts, where people have little or no access to healthy food. Bridges says they’ve connected about 200 patients to healthy groceries. But Bridges says policy changes are needed to give more Kansans access to healthy food and improve health outcomes. “So the question is, could health insurance companies cover the cost of healthy food provision? Could Medicaid, Medicare cover the costs?,” she asked. Bridges says addressing food insecurity will ultimately save money on health costs.
editor's note: KPR receives underwriting support from the Sunflower Foundation.
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Liberty Hospital Joins University of Kansas Health System
UNDATED (KCUR) – Liberty Hospital in Missouri officially joined the University of Kansas Health System Monday, despite backlash on both sides of the state line. KCUR reports that Liberty Hospital sought a merger to keep up with industry changes and meet growing demand in Platte and Clay counties. The merger faced criticism from lawmakers who didn’t like the idea of an out-of-state hospital running one in Missouri. But Tammy Peterman, president of KU Health’s Kansas City Division, says about 35% of the health system’s patients are already from Missouri. “We knew eventually we would need a way to care for more patients in Missouri and the Northland to keep care close to home," she explains. Peterman adds they’ll focus on ways Liberty Hospital can best be integrated into the health system in the coming months.
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Annual Kansas Opioid Survey Seeks Public Input to Inform State Response Plan
TOPEKA, Kan. (KNS/KMUW) — The state of Kansas is asking residents for feedback to help with its opioid response plan. The survey is part of the state’s annual update to its plan that addresses substance use and the increasing number of overdose deaths across Kansas. In previous years, some of the initiatives included legalizing fentanyl test strips and creating a Good Samaritan law for drug overdoses. Both of those became law in recent years. Cara Anderson is the chair of the state’s prescription drug and opioid advisory committee. "This data will then be used by KDHE to then determine harm reduction strategies and initiatives that Kansas still needs.” The deadline to fill out the survey is July 12th.
The survey can be found online at dccca.org.
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Experts Warn Ranchers About Cattle Heat Stress
LIBERAL, Kan. (KNS) — Western Kansas has the highest concentration of cattle in the state, and the animals can be sensitive to extreme heat. Prolonged exposure to high temperatures can cause heat stress. Just two years ago, Kansas saw heat kill more than 1,000 head of cattle. Kansas State University warns that southwest Kansas is under heat advisories for animal comfort, and temperatures may only get worse. Will Milashoski, a livestock instructor at Seward County Community College, says extreme weather can hurt the livelihoods of western Kansans. “As those businesses struggle, those communities around them will struggle, whether it be layoffs, you know, if we're losing too many cattle we're not we're not making this sustainable,” he explained. Milashoski says ranchers need to monitor their herds and provide access to shade and extra water. But he says feedlots may have a harder time providing these amenities.
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Overland Park's Leanne Wong Qualifies as Alternate for Team USA
UNDATED (KPR) — Gymnast Leanne Wong, of Overland Park, has qualified as an alternate for Team USA. That means she'll be traveling to the upcoming Summer Olympics in Paris. It will be the second time Leanne Wong will travel to the Olympics with the USA team. But this trip will be less restrictive because the athletes won’t be dealing with the pandemic that hampered their Tokyo experience three years ago. Wong says she’s also listening to advice from Simone Biles, who won the automatic spot on the five-person team as the Olympic Trials champion in all-around. "I’m really looking forward just to go to Paris and getting a real Olympic experience," she said. "Even as an alternate, I still have a huge role on the team. Like Simone said, it’s even one of the most important roles because you have to step in at any time." Wong is one of two alternates who will travel with the five chosen after the conclusion of the Sunday evening trials.
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Remembering the Kansas Woman Who Became the Nation's First Food Writer
MANHATTAN, Kan. (KPR) — The discussion of food seems to be everywhere these days. There's even a TV network dedicated to it. From best-selling cookbooks to numerous shows on The Food Network, Americans seem to be obsessed. But that wasn't always the case. Things began to change when a woman from Riley County, Kansas, studied journalism at Kansas State University and then... started writing about food. Clementine Paddleford, America's first food writer, has largely been forgotten since she died in 1967. Hear her story, from KPR Commentator Katie Keckeisen.
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Area Streets Already Alive with Fireworks Ahead of July 4th Holiday
KANSAS CITY, Mo. (KCUR) — Many streets are already booming with Fourth of July fireworks – even though the holiday is still days away. Experts encourage people to use caution. Nearly 10,000 Americans were treated in emergency rooms for firework injuries last year. Dr. Kate Biberdorf, a chemist and host of KCUR’s "Seeking a Scientist" podcast, says fireworks can also cause respiratory and cardiovascular problems.
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Wichita Plans to Use Closed Elementary School as Homeless Shelter
WICHITA, Kan. (KMUW) — The Wichita School Board has declared the former Park Elementary School a surplus property. That's the first step in allowing its sale to the city. KMUW reports that the city of Wichita intends to purchase the building and convert it into a homeless shelter and resource center. Under state law, the Kansas Legislature has the first option to acquire former school buildings. If it declines, the city intends to buy Park Elementary for a dollar. The city says it wants to open its emergency winter shelter there by the fall.
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Kansas Warns of Increased Tick & Mosquito-Borne Illnesses
TOPEKA, Kan. (KNS) — The state of Kansas is warning of increased cases of tick and mosquito-borne diseases. Ticks can spread a variety of diseases, like spotted fever and alpha-gal syndrome - a red meat allergy. Dr. Erin Petro is the state's public health veterinarian. She says several tick-borne diseases have already ended in hospitalization this year. "Those were happening in early May, which is about three to four weeks ahead of when we start really getting our rush of tick borne diseases," she said. Petro says factors like a warm spring and more rainfall can increase increase tick activity.
Professor Town Peterson, a biologist at the University of Kansas who studies ticks, says climate change plays a role and may make the insects more active. "It gets warmer earlier in the spring, and it stays warmer later in the fall," he said. "And that means the ticks have the potential to get out and look for a host in parts of the year when they never would have been able to before." Peterson says a thriving deer population also plays a role. State health officials recommends applying insect repellent (with DEET) and wearing long pants outdoors.
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