Airbus snatches up Spirit AeroSystems for $1 billion in acquisition deal as Boeing faces fallout from 737 Max incident
In a major acquisition deal, Airbus has agreed to buy the assets of Spirit AeroSystems for $1 billion. This move comes after Boeing decided to purchase the bulk of Spirit following the Alaska Airlines incident. Under the agreement, Airbus will take over production of key activities related to Airbus, including building A350 fuselage sections, pylons, wings, and mid-fuselage for A220 jets.
This is not the first time Airbus has acquired assets at a low cost. In 2018, Airbus bought a 50% stake in the Bombardier CSeries for just one Canadian dollar, which was later increased to 75% in a $591 million deal. Spirit AeroSystems built the fuselage of the Alaska Airlines 737 Max that suffered a door plug incident in midair, leading to Boeing initiating buyback negotiations with Spirit in order to enhance quality-control processes.
The National Transportation Safety Board reported that Spirit sent the plane to Boeing’s plant with damaged rivets, and the door plug was removed to address the issue but wasn’t properly secured before delivery to Alaska Airlines. The fallout from this incident has resulted in Boeing CEO Dave Calhoun stepping down and the Justice Department considering potential criminal charges against Boeing, which may be announced soon.
