Boeing Considers Shedding Airbus-Related Businesses at Spirit AeroSystems
Boeing is contemplating shedding or significantly reducing specific businesses at Spirit AeroSystems that supply crucial components to Airbus, according to sources familiar with the matter cited by Reuters.
Complexities in Boeing’s Strategic Plans
As Boeing explores a potential acquisition of Spirit AeroSystems, discussions are underway regarding the fate of Spirit’s ties to Airbus, posing complexities for Boeing’s strategic plans.
Addressing Production Chain Challenges
Boeing’s consideration of shedding Airbus-related businesses comes amidst its efforts to regain control over its production chain and address challenges stemming from a recent crisis, including a mid-air cabin panel blowout on a 737 MAX 9 aircraft in January.
Significance of Airbus-Related Business for Spirit AeroSystems
The Airbus-related business constituted a significant portion of Spirit Aero’s revenue in 2023, accounting for approximately a fifth of its total earnings.
Exploring Regulatory and Operational Options
Despite the possibility of completing a Spirit purchase without selling these businesses, Boeing is exploring various options to navigate regulatory and operational hurdles.
Defensive Strategy and Regulatory Concerns
Boeing’s defensive strategy extends to potential concerns from European regulators regarding Airbus’s reliance on a major competitor for critical components in its supply chain.
Implications of Dependencies
The intricate nature of these components, customised using proprietary design and technology, raises questions about the feasibility and implications of such dependencies.
Uncertainty in Negotiations
Although discussions are ongoing, the specifics of Airbus’s stance regarding the potential acquisition remain uncertain.
Impact of Airbus’s Response
Airbus’s response could significantly impact the trajectory of negotiations, with the company assessing various options to safeguard its interests.
Exploring Other Options
Boeing’s evaluation includes exploring the interest of other entities in Spirit’s Airbus-related business, although concrete developments in this regard have yet to emerge.
Commitment to Stakeholders
Spirit AeroSystems emphasises its commitment to acting in the best interests of its stakeholders amidst ongoing commercial negotiations with Airbus.
Role of Spirit AeroSystems in Aerospace Industry
Critical to the discussion is Spirit’s role in supplying key components for Airbus aircraft, particularly its involvement in producing fuselage sections and wing parts for the Airbus A350 wide-body jet.
Analysts’ Perspectives
Aerospace analysts highlight the sensitivity surrounding Airbus A350 composite technology and the potential implications of changing ownership dynamics in Spirit’s operations.
