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Airbus is nearing a deal with Spirit AeroSystems to take over parts of the aerospace supplier’s work on some of its key aircraft programmes, paving the way for Boeing to purchase the rest of the group.
Under the agreement, Airbus would take over the work that Spirit does for its A220 and A350 aircraft programmes at several sites around the world, including in Belfast in Northern Ireland, according to several people familiar with the discussions.
Talks are “moving in the right direction”, these people said. An announcement could come as early as next week although they cautioned that it could yet slip as discussions on what is a complex agreement between the three companies were ongoing. Boeing is expected to take over the bulk of Spirit’s operations, including its main facility in Kansas.
Boeing has been in talks with Spirit since March as the US plane maker seeks to improve the supplier’s manufacturing processes after the mid-air blowout of a section of the main body of one of its 737 Max aircraft in January. Spirit supplies Boeing with the fuselages and both companies are undergoing an audit by America’s aviation safety regulator.
An agreement, however, has been complicated by the fact that the Kansas-based group is also a key supplier to Europe’s Airbus from sites including in Northern Ireland, Scotland and the US.
Spirit’s Belfast facilities build the wings and mid-fuselage sections for the A220 passenger jets. Some other A220 work is done at a site in Casablanca, Morocco. Spirit builds sections for the A350 wide-body jet in Kinston, North Carolina and Saint-Nazaire, France.
Airbus, which previously confirmed it was in talks with Spirit about potentially acquiring some of the activities the supplier carries out for it, has been focused on carving out the work for the A220 and A350 programmes, according to the people briefed on the talks.
Spirit also does work for other aviation customers at its sites. Belfast manufactures the fuselage sections and other critical components for a range of business jets built by Canada’s Bombardier.
Unions in Northern Ireland have previously raised concerns over a break-up of the Belfast operations, which span six sites and employ more than 3,000 people. They are integral to the region’s thriving aerospace industry and are part of the historic Short Brothers factory.
Spirit reported a net loss of $617mn in the first quarter after Boeing slowed operations at its 737 Max factory in Washington and stopped accepting flawed fuselages from the Kansas supplier, in an effort to improve the quality of Boeing’s own manufacturing processes. The supplier last reported an annual profit in 2019.
Boeing declined to comment. Spirit spokesperson Joe Buccino said the company remained “focused on providing the best quality products for our customers”.
Airbus said it was in discussions with Spirit “to protect the sourcing of our programmes and to define a more sustainable way forward, both operationally and financially, for the various Airbus work packages that Spirit AeroSystems is responsible for today”.
Reuters first reported that talks were nearing an agreement.
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