Airbus Secures $559 Million Compensation in Spirit AeroSystems Deal for Loss-Making Operations

Airbus has announced a strategic acquisition involving specific loss-making operations of Spirit AeroSystems, as part of a wider plan that includes a break-up of the supplier between Airbus and its industry rival, Boeing. Under the terms of the deal, Airbus will assume control of operations at several Spirit plants that are crucial for the production of its A220 and A350 passenger jets, confirmed a recent statement from the company.

In a significant move to stabilize its supply chain, Airbus will receive a compensation of $559 million from Spirit for taking on these challenging operations. The European aerospace giant will pay a nominal $1 for the assets, contingent on the finalization of the deal’s specifics. This financial arrangement reflects the challenging economic conditions of the acquired activities and aims to secure a more sustainable operational and financial path forward for Airbus’s commercial aircraft programs.

The acquisition includes activities at four of Spirit’s facilities located in the United States, Northern Ireland, France, and Morocco, which are instrumental in the manufacturing processes for the A350 and A220 aircraft models. Additionally, Airbus will take over smaller operations related to the A220 in Wichita, Kansas, where Spirit AeroSystems is headquartered.

This deal, still subject to due diligence, was made public following a report by Reuters and comes at a time when Airbus has revised its delivery and production forecasts downward. The agreement marks a critical step in ensuring the continuity and stability of Airbus’s supply chain for key commercial aircraft programs.