Airbus Finalises Deal to Acquire Key Spirit AeroSystems Assets
Europe’s Airbus has finalised an agreement to take over select assets from Spirit AeroSystems, completing a crucial part of a wider transatlantic carve-up involving US rival Boeing. The move stabilises an important part of the global aerospace supply chain.
Spirit Split Between Airbus and Boeing
Last year, Boeing agreed to reacquire Spirit, the world’s largest independent aerostructures supplier, for $4.7 billion in stock—two decades after originally spinning it off. Meanwhile, Airbus committed to take over Spirit’s loss-making, Europe-focused operations.
This joint intervention by competing aerospace giants is unprecedented. It was triggered by years of financial strain on Spirit, intensified by Boeing’s recent 737 MAX crisis. Without action, Spirit’s collapse could have severely disrupted global aircraft production.
Plants and Activities Included in the Deal
Under the deal, Airbus will take control of several key operations. These include the plant in Kinston, North Carolina, which makes crucial fuselage parts for the A350, and the Belfast facility in Northern Ireland, which produces carbon-fibre wings for the A220.
Airbus will also acquire certain activities in Morocco and France, along with production of wing components for A320 and A350 jets at the Prestwick plant in Scotland.
In compensation for assuming the loss-making production work, Spirit will pay Airbus $439 million. This payment is lower than the initially agreed $559 million due to changes in the deal’s scope.
Despite analysts warning that the new payment may not fully offset financial pressures, Airbus shares rose around 2% after the announcement, easing investor concerns over supply chain disruptions that had delayed A350 deliveries.
Concerns Over Belfast Jobs
The agreement leaves uncertainties over the future of parts of the former Short Brothers site in Belfast, Northern Ireland’s largest manufacturing employer. Britain’s Unite union has urged the government to prevent any break-up of the Spirit operations there, which currently employ 2,600 people.
Spirit confirmed that Airbus would acquire the A220 wing production in Belfast. If no suitable buyer is found for the A220 mid-fuselage production, Airbus would also absorb this activity.
In addition to supplying Airbus, Spirit’s Belfast site works on Bombardier private jets and defence and space projects. The operation recorded a $338 million loss in 2023.
Recent letters from Boeing Commercial Airplanes CEO Stephanie Pope and Spirit CEO Pat Shanahan to employees indicated that non-Airbus work from Belfast could move to Boeing if necessary.
Deal Completion Expected in Third Quarter
Originally expected to close by mid-year, the complex three-way deal is now forecast to complete in the third quarter of 2025. Airbus will also provide Spirit with $200 million in new interest-free credit lines to help manage operations during the transition.
Airbus CFO Thomas Toepfer had earlier told shareholders the company aimed to finalise the Spirit agreement by the end of April and formally close the acquisition by June 30. The slight delay reflects the complexity of the transaction.
with inputs from Reuters
