Spirit Aero suspends guidance on Boeing 737 rate uncertainty

The key supplier that builds most of the fuselage for Boeing Co.’s 737 Max aircraft plans to more closely link compensation for its top executives to the quality of its products in the wake of a near-disaster last month. “It will be significantly different, and the heaviest weighting will be on quality,” Spirit AeroSystems Holdings Inc. CEO Pat Shanahan said of the company’s compensation plans on Tuesday. “We’re changing it fundamentally, and we’re now making sure that what we put in place works well and drives the right kind of behavior.” Shanahan didn’t disclose specifics, but the overhaul underscores how Spirit and its top customer Boeing are redoubling efforts to rebuild their reputations after a fuselage panel blew off a 737 Max 9 operated by Alaska Airlines. Speaking to analysts after reporting Q4 earnings, Shanahan said that Spirit was taking a “hard look” at its processes after the blowout and a string of other supplier missteps that hamstrung Boeing’s cash-cow 737 Max over the last year. Spirit took a number of steps within days of the Jan. 5 accident, adding inspections with Boeing patterned on those performed by airlines returning an aircraft to service, Shanahan said. The company also undertook a detailed review of the mid-entry door plug assembly and installation process with its largest customer. The National Transportation Safety Board is due to report preliminary findings in its probe of the accident on Tuesday. <br/>