Former Boeing Executive Patrick Shanahan Named Interim CEO of Spirit AeroSystems as Outgoing CEO Resigns

In a significant leadership change, Tom Gentile, the CEO of Spirit AeroSystems, has stepped down from his position due to a series of industrial challenges faced by the aerospace supplier. The company has announced that former Boeing executive and Pentagon official Patrick Shanahan will take over as the interim CEO immediately. While Gentile will stay on as a consultant for three months, Spirit AeroSystems will conduct a search to identify a new CEO.

Spirit AeroSystems has experienced a tumultuous year, with its shares falling by 45% since the start of 2023. These challenges include a two-week work stoppage at its Kansas-based production plant, the discovery of costly production errors related to the Boeing 737, and over $200 million in losses on Airbus and Boeing plane production programs.

Tom Gentile, who became Spirit’s CEO in August 2016, navigated the company through the 737 MAX crisis and the pandemic. His tenure, however, was marked by supply chain challenges and production defects, including misdrilled holes on the 737 MAX aft pressure bulkhead. In September, Gentile stated that current contracts with Boeing and Airbus were “not sustainable” and needed renegotiation due to rising inflation.

The departure of Gentile had been expected given the company’s financial difficulties, but industry analysts noted the immense challenges he faced. Patrick Shanahan, known for his ability to turn around troubled programs during his 31-year career at Boeing, is seen as someone well-suited to the task. Shanahan’s close relationship with Boeing, Spirit’s top customer, and his reputation for execution position him favorably for the role.

Shanahan aims to stabilize Spirit AeroSystems’ operations and optimize cash flow. His priorities may include preparing for production ramp-ups and reviewing contracts with Airbus, Boeing, and other customers. The timing of his appointment allows for discussions with key customers and suppliers at an Aerospace Industries Association meeting in Wichita, Kansas, where the aviation industry’s challenges and opportunities are likely to be addressed.

Sources: AirGuide Business airguide.info, msn.com, boeing.com