A crucial step in a transatlantic carve-up of the prolonged supplier with US competitor Boeing has been completed, as Europe's Airbus announced that it has reached a deal to acquire some assets from Spirit AeroSystems.
Last year, the US aircraft manufacturer consented to repurchase the aerostructures behemoth it had spun out twenty years prior for $4.7 billion in shares, while Airbus took over the supplier's Europe-focused, loss-making operations.
As part of the agreement, Spirit would get $200 million in non-interest bearing credit lines from Airbus, the companies said.
In the meanwhile, Spirit will pay $439 million to Airbus as compensation, the aircraft manufacturer announced.
The transfer involves two major plants: one in Belfast, Northern Ireland that produces carbon wings for the A220, and another in Kinston, North Carolina, where Spirit manufactures an essential component of the A350 fuselage.
According to reports, Spirit CEO Pat Shanahan and Boeing Commercial Airplanes CEO Stephanie Pope, Boeing are expected to receive some work in Belfast and a Prestwick, Scotland factory that Airbus did not acquire.
Spirit announced that Belfast's A220 wing production would be acquired by Airbus. Airbus would also take over the production of the A220 mid-fuselage if no suitable buyer could be found.
Airbus announced that it will purchase the Prestwick, Scotland-based facility that produces wing components for the A320 and A350.
The decision to proceed comes as Boeing increases production of its best-selling 737 MAX jet after a string of problems in 2024 that affected output, even though the company had already contemplated repurchasing its former subsidiary.
With financial assistance from both aircraft manufacturers, Spirit Aero, which makes the MAX's fuselage, expressed concerns last year about its capacity to operate as a going concern.
Also Read: Meituan's Drones are soaring in Revolutionizing the Delivery Service in China's Bustling Metropolis
Spirit Aero, based in Wichita, Kansas, stated in February that it had $890 million in total financial liquidity but anticipates spending $650 million to $700 million in free cash in the first half of 2025.