about 2 months ago

Airbus Acquires Spirit AeroSystems Assets to Strengthen Supply Chain Control

European aerospace giant Airbus Group SE $AIR.PA and U.S.-based Spirit AeroSystems $SPR announced the signing of a final agreement regarding the transfer of several commercial aviation assets. Under the deal, Airbus will take control of specific Spirit facilities located in the United States, France, Morocco, and Northern Ireland. Additionally, Airbus will acquire production operations for wing components used in its A320 and A350 aircraft, based in Scotland.

Financial Terms of the Deal

As part of the agreement, Spirit will pay Airbus $439 million in compensation. Furthermore, Airbus will provide Spirit with interest-free credit lines totaling $200 million to support their ongoing business relationship. This agreement comes after over a year of negotiations between Airbus, Spirit, and Boeing $BA concerning the restructuring of Spirit’s industrial assets, which are crucial for both major aircraft manufacturers.

Key elements of the deal include:

Acquisition of Spirit assets in the U.S., France, Morocco, and Northern Ireland;
Transfer of production lines for A320 and A350 aircraft wing components;
Compensation payment of $439 million from Spirit to Airbus;
Provision of $200 million in interest-free credit lines from Airbus to Spirit.

Strategic Context of the Agreement

According to Airbus representatives, the primary goal of the transaction is to ensure supply chain stability for its commercial aircraft programs. Spirit’s facilities play an important role in Airbus’ supply network, and gaining direct control over these sites is expected to enhance operational resilience and efficiency.

This move also reflects Airbus’ broader strategy to reduce risks associated with external suppliers, especially amid the operational and quality control challenges Spirit has faced in recent years.

The Situation Surrounding Spirit AeroSystems and Boeing

Spirit AeroSystems was spun off from Boeing in 2005 but has remained closely tied to the American aerospace manufacturer. Boeing accounts for more than 80% of Spirit’s order book. In 2023, Boeing announced plans to reacquire Spirit in a $4.7 billion all-stock deal in an effort to address persistent quality and reliability issues.

However, management difficulties and rising costs prompted Spirit to rethink its business structure, leading to the divestiture of certain assets. The transfer of facilities to Airbus represents a significant part of this restructuring, allowing both companies to focus on their respective strategic priorities.

Outlook and Significance of the Deal

The execution of the deal between Airbus and Spirit marks a major development in the restructuring of the global aerospace supply chain. With growing demand for commercial aircraft and tightening quality standards, securing reliable component supplies has become increasingly critical.

By directly managing key production facilities, Airbus is expected to: