Airbus Explores Strategic Move with Spirit A220 Wing Plant
Airbus and Spirit AeroSystems have reportedly discussed the prospect of Airbus taking control of a Belfast-based plant in Northern Ireland, where Spirit currently manufactures wings for the A220 aircraft. Although industry sources suggest that no immediate deal is likely, the discussions indicate a potential shift in ownership dynamics. An Airbus spokesperson refrained from commenting on the merger and acquisition speculation, while a representative from Spirit emphasized ongoing negotiations with Airbus, expressing the value of their partnership.
The background to this development lies in Airbus’s acquisition of the CSeries passenger jet program from Bombardier in 2018, renaming it the A220. Subsequently, Bombardier faced financial challenges and sold the Belfast plant, initially responsible for crafting the A220’s carbon-composite wings, to Spirit AeroSystems, a former Boeing subsidiary.
Recent reports suggest that Boeing is in talks to repurchase Spirit AeroSystems, which is grappling with cash flow difficulties. In response, Spirit has acknowledged negotiations with Airbus regarding contractual pricing but remains committed to discussions, underscoring the significance of their collaboration. The Wall Street Journal’s coverage adds that Boeing’s interest in acquiring Spirit could be linked to the latter’s financial struggles.
The issue of pricing has been a point of contention between Airbus and Spirit. While Spirit has sought higher prices from Airbus, it has already reached a pricing agreement with Boeing. Airbus, in contrast, has advocated for cost reductions at Spirit as part of its strategy to make the A220 program more financially viable.
Although bringing A220 wing manufacturing in-house by bypassing pricing talks is not Airbus’s preferred choice, the situation may evolve if Spirit is reintegrated into Boeing. The potential change in ownership dynamics raises questions about the future of the Belfast plant and its role in A220 production.
It’s important to note the historical context of the Belfast plant, acquired by Bombardier in 1989 from Short Brothers, the world’s oldest planemaker. The facility faced geopolitical sensitivity in 2017 during a dispute between Boeing and Bombardier over aircraft subsidies.
The Belfast plant employs innovative techniques in wing production for the A220, reducing reliance on energy-intensive autoclaves or pressurized ovens. As discussions continue and the aviation industry landscape evolves, the fate of this manufacturing facility and the broader implications for Airbus, Spirit AeroSystems, and Boeing remain subjects of keen interest.
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