Airbus Anticipates Receiving $559 million in Compensation as per Spirit Aero Agreement

Airbus, a European aerospace corporation, outlined the conditions under which it intends to acquire certain financially challenged operations of Spirit AeroSystems. This acquisition is part of a broader plan to divide the supplier between Airbus and its competitor, Boeing.

Airbus is assuming control of operations at underperforming facilities that provide crucial components for its A220 and A350 passenger aircraft as part of a new agreement.

Airbus will be compensated for agreeing to take on the work by a payment of $559 million from Spirit, while it will pay a nominal sum of $1 for the assets, depending on the final outline of the deal, it said in a statement.

The European planemaker did not specify the mechanism of compensation, which stems from the financial condition of activities it is acquiring as a result of Spirit's decision to sell the rest of the company back to its one-time owner Boeing.

Airbus, which last week trimmed delivery and production forecasts, said the deal would "ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially".

As reported by Reuters, the company has confirmed that it will assume operations at four Spirit facilities located in the United States, Northern Ireland, France, and Morocco, which are involved in the production of components for the A350 and A220 aircraft. Additionally, it will undertake certain minor activities related to the A220 in Wichita, Kansas, where Spirit is headquartered.

The accord Is contingent upon the satisfactory completion of due diligence, as stated by Airbus.

July 01, 2024