European aircraft manufacturer Airbus has agreed to provide an additional $94mn support package to US parts supplier Spirit AeroSystems, to enable the company to stabilise its production on Airbus programmes ahead of the acquisition process closing.
The initial agreement between Airbus and Spirit issues $94mn to the parts supplier for exclusive use on specified Airbus contracts. This batch of financial assistance follows funds of $29mn issued within three days of the original agreement on 28 June 2024, and a further $29mn paid to Spirit on 1 August 2024, bringing total support to $152mn.
US aircraft maker Boeing is currently in the process of reacquiring its former subsidiary Spirit in a bid to stabilise its supply chain and financial position. The merger agreement also divested to Airbus various work packages carried out by Spirit for its European customer.
The agreement specifies the following contracts to be eligible for the financial support: A350 wing, A350 fuselage, A321 NEO XLR inboard flap, Short Brothers GTA, A220 mid-fuselage, A220 pylon, A220 wing and business agreement.
Any assets purchased with the financial support will be directly or indirectly assumed by Airbus once the acquisition transaction closes, which is expected in the third quarter.
In addition to the $152mn support package, Airbus has also provided Spirit with non-interest bearing lines of credit of $200mn.
Spirit confirmed earlier this month that Airbus will also take on mid-fuselage production in Belfast, having originally only committed to the A220 wing and A350 programmes. Shorts Brothers, which operates the Belfast site as a subsidiary of Spirit, reported a loss of $504mn in 2024 owing to adverse inflationary pressures on its supply chain and challenges with hiring and retaining a skilled workforce.
Following the divestment to Airbus and acquisition by Boeing, Short Brothers will continue to supply structural aircraft components and spare parts to Canadian business jet manufacturer Bombardier, and UK engine firm Rolls-Royce.
