Airbus Says Will Buy 'Major Activities' Of Subcontractor Spirit
(MENAFN- The Peninsula)
AFP
Paris: European aerospace giant Airbus said Monday it would buy "major activities related to Airbus" from subcontractor Spirit AeroSystems, as US rival Boeing said it was going to take over the bulk of the group's operations.
Spirit AeroSystems builds fuselages and other significant parts for both Airbus and Boeing.
Airbus said it had entered into an agreement to take over Spirit's facilities related to the production of parts for its planes for a nominal fee of $1, and will be "compensated by payment of $559 million from Spirit AeroSystems" for the transaction.
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The group said this includes production sites related to the A350 in North Carolina and France, as well as the production of the A220's wings and mid-fuselage in Belfast and Casablanca in Morocco.
It would also cover the A220 pylons which are made in Kansas in the United States.
The group said in its statement Monday that with the agreement Airbus "aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially."
The announcement comes as US aircraft manufacturer Boeing said it had reached a "definitive deal" to buy Spirit, which has faced scrutiny over production quality control in recent months.
Boeing said the merger was worth $4.7 billion.
Boeing is by far Spirit's biggest customer, with around 70 percent of its revenue coming from the American plane maker in 2023.
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