Prime Highlights
- Airbus has signed an agreement to acquire selected Spirit AeroSystems loss-making assets in Europe.
- As per the deal, Airbus will pay Spirit $439 million and an Airbus line of credit of $200 million.
Key Facts
- Airbus will acquire Spirit’s Belfast (Northern Ireland), Kinston (North Carolina), and Prestwick (Scotland) plant.
- The deal would be finalized in April 2025.
Key Background
Airbus has agreed a landmark deal to acquire some of Spirit AeroSystems’ assets, a turning point in the transatlantic restructuring of the aerostructure supplier. It is part of a broader plan between Airbus and Boeing, where Boeing would reacquire most of Spirit’s operations.
Those properties that Airbus is purchasing are Spirit’s loss-making European operations, such as the Kinston, North Carolina factory that makes major components for the A350 fuselage and the Belfast, Northern Ireland factory that makes carbon wings for the A220. Airbus also is buying the manufacture of A320 and A350 wing components at the Prestwick, Scotland factory. On the other hand, Spirit will give Airbus a $200 million interest-free credit facility and a payment of $439 million in the transaction.
The transaction is to close in the fourth quarter of 2025, the same time that Boeing is set to close its acquisition of Spirit. The restructuring is meant to consolidate Spirit’s operations and enable a more stable supply base for Boeing and Airbus.
Financially, Spirit AeroSystems has not been doing great, and it is estimated that the company will incur a cash burn of as much as $700 million during the first half of 2025. The acquisition by Airbus is seen as a strategic initiative to halt such financial losses and ensure the future of the company’s operations in Europe. The Airbus-Boeing alliance here is employed to emphasize the complexity of the global aerospace supply chain and the need for strategic alliances to counter money and operating concerns.
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