WASHINGTON, April 24, 2024 (BSS/AFP) - Boeing is giving subcontractor Spirit Aerosystems $425 million in advance payments so it can maintain production and allow the US aviation giant to fulfill its orders, a regulatory filing showed Tuesday.

Boeing, which reports its quarterly earnings on Wednesday, has faced intense scrutiny since a near-catastrophic incident in January, when a fuselage panel blew off of a 737 MAX mid-flight.

The incident revived major questions around Boeing's manufacturing and safety practices that had initially arisen following two fatal crashes in 2018 and 2019, but which had subsided following a lengthy grounding of the 737 MAX.

Spirit manufactures fuselages and other large airplane parts, including for Boeing's 737 jets.

Following the January 5 incident, an audit by the US Federal Aviation Administration of Boeing and Spirit found "multiple instances where the companies allegedly failed to comply with manufacturing quality control requirements."

Around the same time, the two companies announced they were in talks for Boeing to buy Spirit.

The deal would return Kansas-based Spirit to Boeing after the larger company spun it off in 2005.

Spirit's recent filing with the US Securities and Exchange Commission said that advance payments must be used "for the sole purpose of maintaining readiness to produce Products... at the rates required by Boeing."

Under the terms of the agreement, Spirit is to repay Boeing in installments between June 12 and October 16 of this year.

When contacted by AFP, Boeing said: "We continue to work together with Spirit to improve quality, stabilize operations and support our customers."

Boeing announced in late March that CEO Dave Calhoun would step down at the end of the year as part of a leadership shakeup.