Boeing and Airbus Negotiate Over Spirit AeroSystems Divestiture Amid Antitrust Concerns

Boeing and Airbus are reportedly discussing a strategic framework to potentially split the assets of Spirit AeroSystems, focusing on divisions that are critical to each manufacturer’s operations, according to sources cited by Reuters. These discussions come amidst heightened scrutiny from antitrust regulators concerning the duopoly’s market influence.

The talks are exploratory and involve identifying a structure where Boeing would likely acquire Spirit’s largest facility at Wichita McConnell Airport, which is the exclusive fuselage supplier for the Boeing 737 series, along with other Boeing programs such as the P-8 Poseidon, 767, 777, and 787. In 2023, Boeing’s purchases from Spirit accounted for approximately 63.6% of Spirit’s total revenues, amounting to $3.8 billion.

Conversely, Airbus’s interest is reportedly centered on Spirit’s operations in Belfast, which produces A220 wings and mid-fuselage sections, and Kinston, which manufactures A350 fuselage sections. Airbus contributed $1.1 billion to Spirit’s commercial revenues in 2023.

This potential acquisition strategy may also involve third parties, particularly concerning the smaller sites operated by Spirit AeroSystems, suggesting that a comprehensive deal could be complex and multifaceted.

As of now, neither Boeing, Airbus, nor Spirit AeroSystems have publicly commented on these negotiations. Spirit AeroSystems, which separated from Boeing in 2005, has been under the spotlight recently due to ongoing quality issues that have also implicated Boeing. Both companies are currently undergoing audits by the Federal Aviation Administration (FAA), with Spirit also facing a separate investigation in Texas.

Spirit AeroSystems is a publicly traded company on the New York Stock Exchange with a diverse base of shareholders. Besides its primary facilities in Wichita, Belfast, and Kinston, Spirit operates additional manufacturing sites in Tulsa, Dallas, Biddeford, Woonsocket, Prestwick, Saint-Nazaire, Casablanca, and Subang, making any potential divestiture a significant undertaking in the global aerospace supply chain.