Europe’s Airbus has finalized an agreement to take some assets from Spirit AeroSystems, both companies said Monday, completing a critical part of a transatlantic carve-up of the struggling supplier with US rival Boeing.
The US planemaker agreed last year to buy back the aerosructures giant it spun off two decades ago for $4.7 billion in stock, while Airbus moved to take on the supplier’s loss-making Europe-focused activities.
Two key plants involved in the transfer are Kinston, in North Carolina, where Spirit (SPR) makes a crucial part of the A350 fuselage, and a plant in Belfast, Northern Ireland, which makes carbon wings for the A220.
“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,” Spirit Chief Financial Officer Irene Esteves said.
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Airbus would provide non-interest bearing credit lines worth $200 million to Spirit as a part of the deal, the companies said in separate statements. Airbus, meanwhile, will be compensated by payment of $439 million from Spirit, the planemaker said.
Letters sent this month to employees from Boeing Commercial Airplanes CEO Stephanie Pope and Spirit CEO Pat Shanahan suggest that some work in Belfast and a plant in Prestwick, Scotland, not absorbed by Airbus would go to Boeing (BA).
Spirit said in its statement that Airbus would acquire the production of A220 wings in Belfast. In case a suitable buyer isn’t found, Airbus would also take over the production of the A220 mid-fuselage.
Meanwhile, Airbus said it would acquire the production of wing components for A320 and A350 in Prestwick, Scotland.
While Boeing had previously considered buying back its former subsidiary, the decision to move ahead comes as the planemaker boosts production of its strongest-selling 737 MAX jet following a series of crises in 2024 that weighed on output.
Spirit, which produces the fuselage for the MAX, raised doubts last year about its ability to continue as a going concern, receiving financial help from both planemakers.
Wichita, Kansas-based Spirit Aero said in February it has total financial liquidity of $890 million but expects to burn $650 million to $700 million in free cash during the first half of 2025, without offering an explanation.
Airbus CFO Thomas Toepfer told shareholders earlier this month that the company expected to complete the agreement with Spirit by the end of April. The full deal with Boeing is expected to close in the third quarter.