Airbus has agreed to purchase assets of Spirit AeroSystems for $1, along with a compensation of $559 million from the aviation manufacturer. This acquisition comes after Boeing decided to buy the bulk of Spirit following the Alaska Airlines incident. In a binding term sheet agreement, Airbus will take over production of key activities related to Airbus, including building A350 fuselage sections, pylons, wings and mid-fuselage for A220 jets.
This deal marks not only a significant acquisition for Airbus but also a major shift in the industry landscape. The low cost of acquiring Spirit’s assets is reminiscent of Airbus’ previous acquisition of Bombardier CSeries in 2018, when they bought a 50% stake for just one Canadian dollar, which was later increased to 75% in a $591 million deal. The fact that Airbus is now taking on key production activities from Spirit indicates their confidence in the company’s capabilities and their commitment to expanding their operations.
The acquisition comes at a time when Boeing is facing intense scrutiny following the Alaska Airlines incident involving the 737 Max. The National Transportation Safety Board reported that Spirit sent the plane to Boeing’s plant with damaged rivets and that the door plug was removed to address the issue but wasn’t properly secured before delivery to Alaska Airlines. The fallout from this incident has resulted in Boeing CEO Dave Calhoun stepping down and potential criminal charges against Boeing being considered by the Justice Department.
Spirit AeroSystems played a crucial role in building key components for several aircraft models including those made by Boeing and other manufacturers. With this acquisition, Airbus is signaling its intention to increase its market share and expand its operations beyond its current offerings. It remains to be seen how this will impact competition within the industry and what implications it will have for other manufacturers like Boeing and Bombardier.