Spirit AeroSystems (NYSE:SPR), a former division of Boeing (NYSE:BA), has secured a collaboration deal with Boeing, resulting in a 20% surge in Spirit’s shares. This agreement comes as a response to the production issues that Spirit AeroSystems has been grappling with, particularly related to essential components for Boeing’s primary jets, including the 737 MAX planes.

The memorandum of understanding between the two companies, announced on Wednesday, includes an emphasis on product quality improvement and increased deliveries. The agreement also encompasses price improvements on airframes manufactured by Spirit and purchased by Boeing. This strategic move is part of Boeing’s efforts to maintain cost competitiveness against Airbus in global airline sales.

In addition to these collaborative measures, the deal involves a series of cash advances from Boeing to Spirit AeroSystems. This includes an immediate cash advance of $100 million aimed at addressing the manufacturing issues that have caused delays in aircraft deliveries.

Despite the recent share boost, Spirit AeroSystems’ shares are down 28% year to date. The company has had to rework payment schedules and secure cash advances to mitigate its manufacturing problems. Moreover, Spirit disclosed forward losses in several aircraft programs, indicating that further adjustments are still required within the business.

The collaboration agreement provides temporary relief for Spirit AeroSystems but does not resolve the company’s long-standing issue since its separation from Boeing nearly two decades ago: escalating labor and material costs while competing with Airbus in the global airline market.