Airbus secures key assets from Spirit AeroSystems amid Boeing acquisition

In January 2025, Airbus finalized a significant agreement to acquire certain assets from Spirit AeroSystems, as both companies aimed to stabilize the struggling supplier amidst the competitive landscape of the aerospace industry. This transatlantic arrangement involves not only Airbus's strategic acquisition but also highlights Boeing's role in a broader context that has profound implications for both firms' future operations. The deal is a critical component of Boeing's prior agreement made last year to buy back Spirit AeroSystems, a supplier it had originally spun off two decades earlier for a substantial $4.7 billion in stock. Among the key plants included in this agreement are two locations that play crucial roles in aircraft manufacturing: the Kinston plant in North Carolina, which specializes in producing an essential part of the A350 fuselage, and the facility in Belfast, Northern Ireland, that manufactures carbon wings for the A220. This acquisition is not only beneficial for Airbus but also represents a significant milestone for Spirit AeroSystems, according to Spirit Chief Financial Officer Irene Esteves. The financial support provided by Airbus includes non-interest-bearing credit lines amounting to $200 million, a significant move indicative of the partnership's potential endurance and profitability for all parties involved. Additionally, as part of this evolving landscape, Boeing Commercial Airplanes CEO Stephanie Pope and Spirit CEO Pat Shanahan have communicated to employees about operational adjustments expected to arise from this agreement. Certain production tasks in Belfast and another facility in Prestwick, Scotland, which are not absorbed by Airbus, will be transitioned to Boeing. This restructuring reflects not only the immediate financial considerations but also the long-term strategic positioning of Boeing to regain a competitive edge in a rapidly evolving market. Meanwhile, Spirit AeroSystems, which has faced significant financial uncertainty, reported total financial liquidity of $890 million as of February 2025, but anticipated a significant burn of $650 million to $700 million in free cash during the first half of the year without offering an explanation. The continued uncertainties surrounding the market and the implications of these restructuring decisions are expected to shape the aerospace industry significantly, with both operational and financial repercussions. With the completion of the agreement expected by late April 2025, Boeing is anticipated to finalize its full acquisition of Spirit AeroSystems in the third quarter, marking a significant shift in the dynamics of aerospace manufacturing as both companies strive to overcome the challenges of increased production demands and financial instability stemming from previous crises in 2024.