Story ID: 
Boeing and Airbus Eye Spirit AeroSystems Deals
By: Gregory Polek
Caption: Value of deals could total some $9 billion
Word Count: 324
Efforts to address supply chain instability and quality assurance have seen Boeing and Airbus each sign deals to potentially acquire their respective interests in Spirit AeroSystems, the companies said on Monday. The moves come amid calls by lawmakers and regulators for Boeing to better manage its safety systems following the in-flight blowout of a door plug on an Alaska Airlines 737 Max 9 in March. The definitive agreement between Boeing and Spirit would involve an all-stock transaction valued at $4.7 billion. The total value would reach $8.3 billion based on Spirit’s last reported net debt.
Spirit manufactures fuselage sections for four Bombardier business jets—the Challenger 650 and 3500, and Global 5500 and 6500. It also supplies engine nacelles for the Challenger 650 and Global 5500 and 6500, as well as the composite horizontal stabilizers for the Global 7500. Spirit’s Casablanca site assembles emergency doors for the Challenger 3500 and the floors for the Global 5500 and 6500.
“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders, and the country more broadly,” said Boeing president and CEO Dave Calhoun. "By reintegrating Spirit, we can fully align our commercial production systems, including our safety and quality management systems, and our workforce to the same priorities, incentives, and outcomes—centered on safety and quality."
Meanwhile, Airbus contracts with Spirit for the production of A350 fuselage sections in Kinston, North Carolina, and Saint-Nazaire, France; the A220’s wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco; and the A220 pylons in Wichita. The potential deal would see Spirit compensate Airbus $559 million for control over those activities.
“With this agreement, Airbus aims to ensure stability of supply for its commercial aircraft programs through a more sustainable way forward, both operationally and financially, for the various Airbus work packages that Spirit AeroSystems is responsible for today,” the company said in a written statement.