Boeing and Airbus are reportedly moving closer to a unique agreement to divide the operations of Spirit AeroSystems, aiming to take over specific facilities that are crucial for their leading jet programs, according to sources familiar with the negotiations. This potential deal between the aerospace behemoths could mark the end of Boeing’s two-decade initiative to outsource significant portions of its production.
To regain mastery over its supply chain, Boeing must navigate its competitive relationship with Airbus, which represents about a fifth of Spirit’s revenue. The discussions are focused on devising a “framework” that would allow the companies to disentangle their connections with Spirit in a coordinated manner. Despite the rarity of direct cooperation between Airbus and Boeing due to antitrust regulations, especially outside environmental or safety realms, talks are underway, although the specifics of these discussions remain under wraps.
Previously, Boeing appeared poised to acquire Spirit entirely before considering the sale of its facilities that primarily serve Airbus. Both Airbus and Boeing have remained tight-lipped, offering no comments on the ongoing negotiations. A representative from Spirit emphasized the company’s continued commitment to delivering high-quality products to its customers.
The potential division and absorption of Spirit signal a strategic shift in the aerospace industry, as manufacturers consider incorporating more airplane structures internally in anticipation of future investments in digital manufacturing technologies.
Spirit AeroSystems, which was divested from Boeing in 2005 and has since become a key supplier to Airbus, is at the heart of this industry evolution. The company manufactures a substantial portion of Boeing’s 737 models, including the fuselage, and significant parts of the 787 Dreamliner. The possibility of a structured agreement to split Spirit’s assets between Boeing and Airbus is under discussion, but uncertainties remain about reaching a final deal.
Key assets for Airbus in any potential arrangement include Spirit’s composite parts factory in Kinston, North Carolina, and the wings factory in Belfast, Northern Ireland, essential for the A350 and A220 models, respectively. The aerospace community watches closely as negotiations progress, aware that any deal would require regulatory approval and could necessitate significant investments to enhance manufacturing efficiencies, particularly for the Belfast facility.
As the industry awaits a resolution, the future of Spirit’s operations in Morocco, Scotland, and Malaysia hangs in balance, with the possibility that third parties might acquire some of these assets.
Related news: https://www.airguide.info/?s=Spirit+AeroSystems
Sources: AirGuide Business airguide.info, bing.com, reuters.com
