European aircraft manufacturer Airbus is nearing an agreement with Spirit AeroSystems, a key supplier of airplane parts. This development comes as Spirit AeroSystems undergoes a business division to change ownership. Airbus CFO Thomas Toepfer recently informed reporters in Toulouse, France about the progress. Reuters quotes him saying, “We’re making good progress. I think it would be realistic to expect that this will happen in the next weeks.” While no specific timeline has been confirmed, Toepfer suggested that July 1 could be the target date for finalizing the deal.
The discussions around Spirit AeroSystems’ ownership change intensified following an incident involving Alaska Airlines in January 2024. The event highlighted flaws in Boeing’s production practices, prompting the company to seek better control over its supply chain and safety protocols. Although Boeing showed interest in acquiring Spirit, complications arose due to Spirit’s diverse client base, which includes Airbus—Boeing’s competitor.
Spirit supplies components for various Airbus models, such as wings for the A220 jet. Its Wichita plant in Kansas handles parts for Boeing’s 737 MAX and 787s, while Airbus has shown interest in Spirit’s Kinston composite parts factory in North Carolina and its A220 wings factory in Belfast.
Airbus and Spirit had discussed a binding term sheet last year with plans to finalize a deal by 2024; however, this timeline was extended into 2025 due to complexities related to splitting the company and dividing intellectual property. Additionally, Airbus is expected to receive compensation for assuming some of Spirit’s loss-making operations.
Meanwhile, Boeing revealed plans last year to acquire Spirit AeroSystems through an all-stock transaction valued at $4.7 billion. This agreement included absorbing Spirit’s significant debt load. Shortly after taking office, Boeing CEO Kelly Ortberg visited Spirit AeroSystems’ facilities upon invitation from US Senator Jerry Moran of Kansas.
In November, Boeing agreed to provide up to $350 million upfront to support Spirit amid financial difficulties. According to their arrangement, Spirit must repay part of this sum by April 2026 and complete repayment by year-end.
Despite these developments with Boeing and ongoing negotiations with Airbus regarding logistics challenges involving Spirit AeroSystems have impacted delivery schedules significantly delaying entry into service dates especially concerning their A350F model.
Airbus CEO Guillaume Faury stated: “Specific supply chain challenges notably with Spirit AeroSystems are currently putting pressure on ramp-up efforts particularly affecting both our A350 & A220 lines.” He further elaborated on targeted monthly production rates aimed at reaching twelve units per month by late-2028 (A350) alongside fourteen units/month scheduled throughout mid-2026 (A220).
