.jpg)
PARIS (Reuters) – Europe’s Airbus on Monday set out the terms under which it plans to buy some of Spirit Aerosystems’ loss-making businesses as part of a broader plan to split the supplier between Airbus and rival Boeing Co.
The deal includes Airbus taking over loss-making factories that supply key parts for the A220 and A350 passenger jets.
Airbus said in a statement that it will receive $559 million in compensation from Spirit for agreeing to do the work, while paying a nominal $1 for the assets, depending on the final outline of the deal.
The European aircraft maker did not specify the compensation mechanism, which stems from the financial condition of the businesses it is acquiring as a result of Spirit’s decision to sell the rest of the company to its former owner Boeing.
Airbus, which last week lowered its delivery and production forecasts, said the deal “will ensure stable supplies for its commercial aircraft programs through a more sustainable way forward, both operationally and financially.”
In confirmation of the Reuters report, the company confirmed that it will undertake activities in four Spirit aircraft factories in the United States, Northern Ireland, France and Morocco, which carry out work for the A350 and A220 aircraft. It will also undertake small activities carried out for the A220 aircraft in Wichita, Kansas, where Spirit’s headquarters are located.
Airbus said the deal was subject to due diligence.
