A potential roadblock has emerged in the proposed acquisition of Spirit AeroSystems by Boeing, a key supplier of aircraft parts. The complication stems from Airbus, Boeing's arch-rival in the commercial airplane market. According to sources familiar with the negotiations, Airbus is demanding financial compensation from Boeing if it is to take on some of Spirit's less profitable operations. This request is a hurdle in finalizing the deal between Boeing and Spirit, which manufactures parts for Boeing's workhorse 737 MAX jet.
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The core issue lies with a Spirit factory located in the United Kingdom. Industry sources claim this facility requires a significant financial injection, potentially exceeding $1 billion, to become profitable. Airbus is understandably hesitant to absorb these money-losing operations without some form of reimbursement from Boeing. Talks are currently underway in New York between representatives from Airbus and Spirit to address this complication, along with other issues such as separating Airbus's existing business dealings with Spirit. The exact details of these discussions remain confidential.
The bigger picture involves Boeing's desire to regain more control over its supply chain, particularly for the crucial 737 MAX program. The recent grounding of the MAX due to safety issues significantly impacted Boeing's production and reputation. Bringing Spirit under their wing would allow Boeing to streamline manufacturing and potentially ramp up production of the 737 MAX. However, Boeing is unlikely to welcome Airbus's demand for compensation easily. The additional financial burden could complicate the overall deal.
Moreover, Boeing would likely prefer to avoid strengthening their competitor's financial position through such a payout. The success of the negotiations hinges on finding a solution that satisfies all parties involved. Airbus needs assurances that taking on Spirit's troubled operations won't hurt their own bottom line. Boeing seeks a smoother supply chain and potentially faster production for the 737 MAX. Ultimately, a compromise will be necessary for this complex deal to move forward.