Belfast plane maker focus of complex deal between Boeing, Spirit, and Airbus 

Spirit AeroSystems completed the purchase of the Belfast plant from Bombardier about four years ago.

A plan by troubled Boeing to buy back supplier Spirit AeroSystems has become mired in protracted discussions over pricing for factories that make components for Airbus, including the Belfast plant, complicating the US plane maker’s efforts to get the deal done. 

Airbus appears to be in no rush to strike a quick deal for the sites, which would expand the holdings of its aero structures division, sources told Bloomberg. Among Airbus's concerns is that the Toulouse-based manufacturer would have to shoulder any operating losses at plants like Spirit’s composite wing factory in east Belfast, adding to the financial drain from the A220 programme. 

Spirit completed the purchase of the Belfast manufacturing plant, formerly known as Shorts, from Canadian plane maker Bombardier about four years ago. Given the complexity of reaching an agreement with its biggest rival, Boeing is considering moving forward with the Spirit takeover without the Airbus deal in place, one of the people familiar with the deal has said. 

Since Boeing first confirmed its intention in early March to re-integrate Spirit, talks have only progressed slowly and don’t appear anywhere close to completion. Untangling Spirit is complicated because the company makes parts not just for Boeing, but also for arch-rival Airbus as well as manufacturers including Northrop Grumman, the sources said. 

The US plane maker had sought to quickly forge a deal with its struggling former aero structures unit, which builds 737 Max fuselages, as it works to improve quality under the close scrutiny of US regulators. Buying back Spirit, which Boeing spun off in 2005, would mark a dramatic step to stabilise its supply chain amid the crisis facing the company. 

Talks between the parties have not broken down, and the companies involved remain willing to reach an accord, the people said. Boeing declined to comment. Airbus said it’s in “early stage discussions on a variety of options, including acquiring from Spirit Aerosystems some of the activities that they carry out for Airbus”. The company declined further comment on the status of negotiations.

“As negotiations continue, our focus remains on providing our customers with the highest-quality product,” Spirit spokesman Joe Buccino said.

Analysts will seek more details during a conference call with Boeing executives when the company reports earnings on Wednesday, including how the cash-strapped company intends to finance the deal. Reintegrating its former Kansas hub won’t resolve the US manufacturer’s near-term crisis, but could prove beneficial over the longer term, Ken Herbert, analyst with RBC Capital Markets, has said. 

Bloomberg and Irish Examiner