Boeing has completed its US$4.7 billion purchase of Spirit Aerosystems, while Airbus has taken over the parts of the aerostructures company relevant to its supply chain.
The move sees Spirit, the largest independent aerostructures firm in the world, re-enter the Boeing conglomerate after it was spun out in 2005.
The deal to split Spirit was finalized by Boeing and Airbus in April and was a relatively complex negotiation because Spirit supplies parts for Airbus’ A220 and A350 as well as to Boeing. Airbus is receiving compensation of US$439 million as part of the agreement, which values Spirit at US$37.25 per share.
Boeing parts
Most of Spirit Aerosystems produces parts for Boeing aircraft, such as fuselages for the 737 program and major structures for the 767, 777 and 787 Dreamliner. The company also produces fuselages for the P-8 and KC-46 military aeroplanes.
In addition, Spirit produces spare parts for Boeing, meaning this capability now becomes in-house. Spirit also has a division which produces parts for the defence sector.
As part of the deal, portions of Spirit Aerosystems’ operations in Belfast, Northern Ireland, have been acquired by Boeing. The Belfast site will operate as an independent subsidiary branded as Short Brothers, a Boeing Company.
Spirit AeroSystems’ commercial and aftermarket operations in Wichita, Kansas; Dallas, Texas; and Tulsa, Oklahoma, as well as Spirit’s Aerospace Innovation Center in Prestwick, Scotland, will integrate into Boeing.
In total 15,000 people across five sites are becoming Boeing employees.
Airbus acquisition
Airbus has taken ownership of the following former Spirit AeroSystems assets:
- Kinston, North Carolina, U.S. (A350 fuselage sections), joining as Airbus Aerosystems Kinston
- Saint-Nazaire, France (A350 fuselage sections), joining as Airbus Atlantic Cadréan
- Casablanca, Morocco (A321 and A220 components), joining as Airbus Atlantic Maroc Aero
- A220 wings and A220 mid-fuselage production lines in Belfast, Northern Ireland, becoming Airbus Belfast
- A320 and A359 wing component production in Prestwick, Scotland, becoming an affiliate named Prestwick Aerosystems
- A220 pylon production, which will be transferred out of Wichita, Kansas, to Airbus’ Saint-Eloi site in Toulouse, France.
Florent Massou, executive vice president operations for the commercial aircraft business of Airbus said, “We are proud to welcome over 4,000 new colleagues, with whom we will embark on a new chapter in our industrial operations by taking on activities of critical importance to our commercial aircraft programmes.”
“This is a pivotal moment in Boeing’s history,” said Kelly Ortberg, president and CEO of The Boeing Company. “As we welcome our new teammates and bring our two companies together, our focus is on maintaining stability so we can continue delivering high quality airplanes, differentiated services, and advanced defense capabilities for our customers and the industry.”
Both Airbus and Boeing had propped up Spirit Aerosystems in recent years, mainly by providing advanced payments for parts while the company was operating at a loss. Quality issues with Spirit Aerosystem-produced parts, such as the fuselages for Boeing’s 737 has been given as a reason for production delays by the OEMs.
