Republican senator urges defense firm CEOs to safeguard Spirit work
Adds more details, background, comments in paragraphs 4-12
By David Shepardson and Allison Lampert
FARNBOROUGH, England, July 22 (Reuters) -U.S. Senator Jerry Moran is urging the CEOs of major defense companies to ensure that work performed by Spirit AeroSystems SPR.N will not be disrupted by Boeing's BA.N planned acquisition of the Kansas-based supplier.
Moran, a Kansas Republican who is the ranking member of the Senate Commerce aviation subcommittee, told Reuters he had spoken to the CEOs of Lockheed Martin, Northrop Grumman, Airbus AIR.PA, General Atomics and Textron over safeguarding future defense work at the aero-structures giant.
"I want to make certain that the work continues in Kansas," Moran said, adding he wants to "make sure that we do not do anything in this acquisition that diminishes the capability of meeting our defense needs."
Boeing is set to acquire most of Spirit as the U.S. planemaker wrestles with a quality crisis that has put it under heightened legal and regulatory scrutiny after a door plug blew out of a near new 737 MAX 9 in mid air on Jan. 5.
The blowout has created ripple effects on airlines, suppliers and passengers, and is creating uncertainty in states like Kansas where aerospace is a key part of the economy.
"We have a lot of eggs in the Boeing basket," Moran said, noting there are 2,000 people at Spirit that focus on defense work.
Boeing Defense CEO Ted Colbert said in a brief interview that it was not uncommon for one major defense firm to provide parts for another company.
But Moran is seeking certainty. "We can't afford other supply chain problems," Moran added. "This work needs to be done - and there can't be a gap."
Moran said in the short-term he believes the work will continue but "in the long term is there some other company that arises that can work for a multitude of companies."
He's also reached out to top U.S. defense officials including the Air Force secretary and Pentagon acquisition chief to raise the issue.
Moran and Senator Jeanne Shaheen are leading a delegation of seven senators who are attending the Farnborough Airshow. The lawmakers are also seeking to convince aerospace firms to invest in their home states.
Kansas Governor Laura Kelly noted the state is home to 450 aerospace suppliers that employ about 100,000 workers and generate $20 billion in annual economic output.
Reporting by David Shepardson and Allison Lampert; Editing by Mark Potter
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