Airbus Considers Acquisition of Spirit A220 Wing Facility
Airbus and Spirit AeroSystems have engaged in discussions regarding the potential acquisition of a Belfast-based plant in Northern Ireland by Airbus. The facility, where Spirit currently manufactures wings for the A220 aircraft, could see a change in ownership, though immediate agreement seems unlikely, according to industry sources. Airbus chose not to comment on the merger and acquisition speculation, while a spokesperson from Spirit emphasized the ongoing negotiations with Airbus, highlighting the importance of their partnership.
The origin of this development can be traced back to Airbus’s acquisition of the CSeries passenger jet program from Bombardier in 2018, subsequently renaming it the A220. Faced with financial challenges, Bombardier sold the Belfast plant, initially responsible for crafting the A220’s carbon-composite wings, to Spirit AeroSystems, a former subsidiary of Boeing.
Recent reports indicate that Boeing is in discussions to repurchase Spirit AeroSystems, which is currently grappling with cash flow difficulties. Spirit has acknowledged negotiations with Airbus concerning contractual pricing but remains committed to discussions, underscoring the significance of their collaboration. The Wall Street Journal’s coverage suggests that Boeing’s interest in acquiring Spirit may be tied to the latter’s financial struggles.
The issue of pricing has been a contentious point between Airbus and Spirit. While Spirit has sought higher prices from Airbus, it has already reached a pricing agreement with Boeing. In contrast, Airbus has advocated for cost reductions at Spirit as part of its strategy to enhance the financial viability of the A220 program.
Although bringing A220 wing manufacturing in-house by sidestepping pricing talks is not Airbus’s preferred option, the situation may evolve if Spirit is reintegrated into Boeing. This potential shift in ownership dynamics raises questions about the future of the Belfast plant and its role in A220 production.
It’s crucial to consider the historical context of the Belfast plant, acquired by Bombardier in 1989 from Short Brothers, the world’s oldest planemaker. The facility found itself in a geopolitically sensitive position in 2017 during a dispute between Boeing and Bombardier over aircraft subsidies.
The Belfast plant employs innovative techniques in A220 wing production, reducing reliance on energy-intensive autoclaves or pressurized ovens. As discussions persist 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.
