Airbus Finalizes Strategic Agreement to Acquire Multiple Spirit AeroSystems Plants
Airbus sealed a long-awaited agreement on Monday to acquire several plants from Spirit AeroSystems, in a deal coordinated with Boeing aimed at preventing the collapse of the world’s largest independent aerostructures supplier. The transaction follows months of negotiations and comes amid growing financial pressure on Spirit, exacerbated by the recent Boeing 737 MAX crisis.
Acquisition Details
Under the agreement, Airbus will take control of several key production facilities. These include a plant in Kinston, North Carolina, which manufactures a critical fuselage section for the A350, and another in Belfast, Northern Ireland, producing carbon fiber wings for the A220.
The deal also encompasses operations in Morocco, France, and Spirit’s headquarters in Wichita, Kansas. Airbus will additionally assume production of wing components for the A320 and A350 models in Prestwick, Scotland, after Spirit abandoned its search for a buyer for that unit.
Financial Aspects of the Deal
The complex deal includes a compensation of $439 million to Airbus for taking over loss-making activities, a figure lower than the $559 million initially planned due to changes in the configuration of the agreement. This compensation was one of the most sensitive points, as Boeing was reluctant to indirectly finance assets that could benefit its main competitor.
To sustain production until the final handover, expected in the third quarter, Airbus will also provide Spirit with an interest-free loan of $200 million.
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Market Reactions and Expert Analysis
Airbus shares rose approximately 3% following the announcement, buoyed by relief over resolving uncertainties surrounding a critical supply chain link. Delays caused by Spirit had slowed A350 deliveries and impacted the development of its cargo variant.
Robert Stallard, an analyst at Vertical Research Partners, described the agreement as “the endgame” for Spirit, a company Boeing had spun off in 2005 to cut costs and diversify its customer base. Meanwhile, Chloe Lemarie of Jefferies cautioned that the compensation might not fully offset the negative cash flow impact on Airbus in 2025, though the company reiterated its financial forecasts.
Impact on Belfast and Labor Concerns
The deal leaves the future of part of the historic Shorts plant in Belfast, now under Airbus’s control, uncertain. The site, which employs around 3,000 people, is Northern Ireland’s primary manufacturing hub and holds symbolic importance for the Protestant unionist community.
Unions such as Unite and GMB have urged the UK government to intervene to safeguard the jobs of approximately 2,000 workers not directly tied to Airbus. “We will fight tooth and nail to protect these jobs,” GMB stated.
A Global Challenge for the Industry
The operation highlights the complexity of dismantling global supply chains amid commercial tensions. Beyond supplying Airbus, the Belfast plant manufactures parts for Bombardier’s private jets and works in defense and space sectors. In 2023, the unit reported a $338 million loss.
Spirit confirmed that if no buyer is found for certain operations, Airbus will also take over production of the A220’s mid-fuselage section, involving 500 additional jobs. There is a possibility Airbus may assume control of a plant in Malaysia as well.
Recent letters sent to employees by Boeing and Spirit leaders suggest that some non-Airbus-related work could transfer to Boeing if no alternative sale is finalized.
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