Airbus signs definitive agreement with Spirit AeroSystems
Image copyright Airbus
The deal includes production of wings and the mid-fuselage for Airbus' A220 aircraft in Belfast and wing component production for its A320 and A350 aircraft in Prestwick.
As part of this agreement, Airbus will take ownership of the following Spirit AeroSystems assets:
- the site of Kinston, North Carolina, US (A350 fuselage sections)
- the site of St Nazaire, France (A350 fuselage sections)
- the site of Casablanca, Morocco (A321 and A220 components)
- the production of A220 pylons in Wichita, Kansas, US
- the production of A220 wings in Belfast, Northern Ireland
- the production of the A220 mid-fuselage in Belfast, Northern Ireland, unless Spirit AeroSystems identifies a suitable buyer for the part of the site where these activities are located
Airbus will also acquire the production of wing components for A320 and A350 in Prestwick, Scotland.
Spirit AeroSystems intends to sell the site of Subang, Malaysia to a third-party owner.
The compensation amount has been adjusted to reflect this revised transaction perimeter, in line with the provisions of the binding term sheet agreement announced on 1st July 2024. Airbus will be compensated by payment of $439 million from Spirit AeroSystems, subject to certain adjustments at closing.
The conditions and financial impact of this agreement are in line with the EBIT Adjusted and Free Cash Flow before Customer Financing preliminary estimates included in Airbus’ 2025 guidance, as issued on 20th February 2025.
With this operation, Airbus aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially, for key Airbus work packages.
Closing of the transaction and the official transfer of operations is planned in the third quarter of 2025, subject to regulatory and other customary approvals.
Airbus has also entered into a memorandum of agreement with Spirit AeroSystems, under which Airbus has agreed to, among other things, provide Spirit AeroSystems non-interest bearing lines of credit in an aggregate amount of $200 million, which will be used by Spirit AeroSystems to support Airbus programmes.
The future for 2,500 Spirit workers remains uncertain despite today's announcement Airbus will take over the A220 wing manufacturing and assembly facility in Belfast, as around 800 of the 2,500 workers at the plant assemble A220 wings and Boeing has indicated it is not interested in the rest of the Belfast site.
Alan Perry, GMB Senior Organiser, said: "The best solution for the Belfast sites is to remain as one identity. Today's announcement raises serious concerns over the future of more than 2,50O workers who don’t work on the Airbus Contract."
Stormont ministers agree with the GMB that a carve up does not benefit the company which has been in Northern Ireland for more than 150 years.
