Both companies announced Monday that Airbus will take control of several Spirit facilities, including a site in Wichita, Kansas, that produces A220 pylons and a location in Kinston, North Carolina, that builds A350 fuselage sections. Facilities in France, Morocco, Northern Ireland, and Scotland will also be transferred to Airbus’ ownership.
The site in St. Nazaire, France, makes A350 fuselage sections, while the plant in Casablanca, Morocco, makes A220 and A321 components. A220 wings are produced in Belfast, Northern Ireland, and wing components for the A320 and A350 are manufactured at the site in Preswick, Scotland.
Additionally, Airbus could acquire a separate Spirit operation in Belfast and another in Subang, Malaysia, if “suitable” third-party buyers are not found.
“Entering into this agreement is a significant milestone as we work towards the closing of the Boeing acquisition, to the benefit of Spirit, its stockholders, and other stakeholders,” said Spirit’s chief financial officer Irene Esteves.
Airbus said the agreement will create a “more sustainable way forward” for “key Airbus work packages.”
As part of the deal, Spirit has agreed to pay Airbus $439 million, and Airbus will provide Spirit with noninterest-bearing lines of credit worth $200 million to support Airbus programs.
Road to Recovery
It is not entirely clear what will happen to certain Spirit operations unconnected to Boeing and not included in the Airbus divestiture. In Belfast, Spirit’s plants also fabricate parts for Bombardier, Honda Aircraft, and Rolls-Royce, among others, and British labor unions are pressing for protections for their members.
Letters sent by officials at Boeing and Spirit to employees suggest the work not absorbed by Airbus would go to Boeing by default if a different buyer cannot be found.
Spirit has weathered heavy losses in recent years as a result of increased production costs, a 2024 strike at Boeing, and changes to manufacturing targets brought on by the COVID-19 pandemic. It also faced scrutiny, together with Boeing, for an uncontrolled decompression event on an Alaska Airlines flight in 2024.
A door plug made by the company failed about six minutes after departure, forcing the 737 MAX 9 to return to Portland International Airport (KPDX). According to the National Transportation Safety Board, seven passengers and one flight attendant received minor injuries.
Spirit has received financial backing from both Airbus and Boeing to buoy its operations, and last year Boeing announced it will buy Spirit in an all-stock transaction. It was agreed at the time that Airbus would have the opportunity to acquire Spirit facilities tied to its aircraft production programs. The deal is expected to close in the third quarter of 2025.
Boeing spun off its Kansas-based fabrication business in 2005 as part of a restructuring effort aimed at securing better financial returns. The new company was initially known as Mid-Western Aircraft Systems before changing its name to Spirit AeroSystems.
Credit: flyingmag.com
