The European jet-maker “will be compensated by payment of $559 million from Spirit AeroSystems, for a nominal consideration of $1.00,” subject to adjustments when finalized.

This makes plain that the deal was engineered to suit Boeing’s needs, with Airbus ready to go along provided it was paid to do so.

For Spirit, the facilities making A350 and A220 parts have been bleeding cash due to low pricing from Airbus, so it makes sense to pay to get rid of them.

The deal will have to undergo regulatory review. Boeing said it is expected to close in mid-2025.

Boeing confirmed in early March its intention to reacquire Spirit in an effort to ensure the continued supply of major aircraft sections.

Boeing cannot afford to have Spirit fail. The supplier makes the forward fuselage of every Boeing commercial airplane and the entire fuselage of the MAX. It also makes wing components, engine nacelles and pylons for Boeing jets.

With this deal, Boeing acquires a troubled company running out of money. In the first quarter Spirit lost $617 million and at the end of March was $4.1 billion in debt with just $352 million cash on hand.

Spirit’s finances cratered in the past five years as delivery halts on the MAX and the 787 programs and then the aviation downturn due to the COVID-19 pandemic slashed its revenue. It also bled cash because of low pricing in its contracts with Airbus and Boeing.

With Spirit in crisis, former top Boeing executive Pat Shanahan was appointed interim CEO last September to try to turn around its fortunes.

Since then, the fuselage panel blowout on Alaska Airlines Flight 1282 shifted the focus from finances to ensuring manufacturing quality.

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