Airbus will pay Spirit $439M for the sites and provide $200M in credit lines. Airbus agreed to acquire some Spirit AeroSystems facilities that make parts for its jets, moving to take direct control of production in a bid to stabilize supply chains after months of disruption.
The companies said Monday that they had entered into a definitive deal for Airbus to take over several of Spirit’s plants in the U.S., Europe and Africa that produce fuselage sections and other components for Airbus’s commercial aircraft.
Spirit, which split off from Boeing BA 3.18%increase; green up pointing triangle about two decades ago, has been at the center of quality issues affecting 737 MAX jets. Spirit made the fuselage involved in last year’s Alaska Airlines emergency landing.
The deal with Airbus comes months after U.S. rival Boeing struck a roughly $4.7 billion agreement to acquire the Kansas-based jet-parts maker, including most Boeing-related commercial operations as well as additional commercial, defense and aftermarket operations.
Airbus Chief Executive Guillaume Faury told shareholders at the company’s annual general meeting earlier this month that supply-chain hurdles, particularly with Spirit, were putting pressure on plans to ramp up production of its A220 narrow-body and A350 wide-body aircraft. Airbus was forced to delay the entry into service of the A350 freighter variant to the second half of 2027 from 2026 previously.
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Exits could complicate regulatory and air-traffic-control work, internal presentation says
Resignations and retirements are building across the agency, potentially affecting divisions that oversee everything from air traffic to legal matters and space launches, according to FAA documents and people close to the discussions.
The departures could complicate regulatory and air-traffic control work handled by the FAA. The agency is under scrutiny after January’s deadly midair collision in the Washington, D.C., area and a series of technology failures that have disrupted air travel.
“Employees are departing the agency in mass quantities across all skill levels,” according to a May 7 internal presentation to senior FAA management, outlining the effects of what is known as a deferred-resignation program.
The presentation, which was viewed by The Wall Street Journal, flagged departures of senior leaders, technical experts and mission-support employees that it said would result in losing critical competencies and institutional knowledge. A similar presentation by the agency’s human-resources staff tallied more than 1,200 employees who were departing under the program.
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Boom Supersonic CEO Blake Scholl wants to bring back flights that break the sound barrier. Now he just needs to figure out whether airlines and travelers will buy in.
When the Concorde was grounded in 2003, done in by strained economics and a fiery crash on a Paris runway, it appeared to be the end of the line for supersonic travel. Nothing emerged to replace it. In fact, the speed of air travel moved in the opposite direction, with many routes getting slower in recent years as congestion and air-traffic control inefficiencies jammed up the skies.
A former Amazon software engineer named Blake Scholl founded a company to change this. A decade ago, he launched Boom Supersonic, betting that his Denver-based startup could tap in to the allure of ultrafast travel—a desire that has never quite been extinguished despite the financial and practical challenges that ended the Concorde’s nearly 30-year run. Scholl sees a world where round-trip trans-Atlantic business journeys happen in a single day.
“The thinking has been, ‘Supersonic flight would obviously be great, but nobody is doing it so therefore it must be impossible,’ ” the 44-year-old chief executive said during a recent interview. “Not true.”
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Boeing CEO Kelly Ortberg said the expected impact of tariffs on the jet maker’s bottom line remains unchanged after a federal court struck down many of President Trump's trade levies. Ortberg, speaking Thursday at an event, said he expects the U.S. to eventually win duty exemptions on plane parts from Italy and Japan, which comprise the bulk of Boeing’s imported parts. The U.S. has reached a trade deal framework with the U.K.
Given that, Ortberg said, the biggest tariff-related threat facing Boeing remains retaliatory tariffs from other governments. The company got caught in the crosshairs of the U.S.-China trade war last month when Chinese airlines halted deliveries of Boeing jets. China has since allowed deliveries to resume. Ortberg said that Chinese airlines have told the company they will resume taking deliveries of Boeing jets next month.
“We have to make sure we don’t have other regions where we take retaliatory tariffs,” he said. Boeing’s status as the largest U.S. exporter also presents an opportunity, he said, as the Trump administration pushes nations to rebalance trade relationships. “There is no better way to do that quickly than through the purchase of aircraft,” he said. Boeing has said it expects U.S. import tariffs to cost the company less than $500 million this year.
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Boeing also admitted to conspiracy to obstruct Federal Aviation Administration operations Boeing will pay $1.1 billion to avoid prosecution for two crashes of its 737 MAX jets. The agreement with the Justice Department requires the company to put $455 million toward strengthening its compliance, safety and quality programs, according to a Securities and Exchange Commission filing on Wednesday. Boeing will also give $444.5 million to the families of crash victims under the agreement, which was tentatively reached last month. Boeing is required to pay a criminal monetary penalty of $487.2 million, half of which was paid in 2021 under a previous agreement. The new deal means Boeing avoids a trial that was scheduled to start June 23 in connection with the two crashes, which left 346 people dead.
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The jet maker said it could deliver more planes this quarter than previously forecast. Boeing's chief financial officer said the jet maker was on track to deliver more planes and burn less cash this quarter than previously expected, boosting its stock early Wednesday.
“We think we’re off to a good start for the year,” Chief Financial Officer Brian West said at an investor conference.
Boeing burned through nearly $14 billion last year as it waded through a quality-control crisis and other snafus, and previously said it expected to add $4 billion to that tally this quarter.
But West said Wednesday the company may burn hundreds of millions of dollars less than anticipated.
He also said jet deliveries could be higher than previously expected. Boeing delivered 89 planes in January and February, up from 54 in the first two months of 2024 immediately following the Alaska Airlines fuselage panel blowout.
Boeing shares rose more than 6% in morning trading following West's comments.
West said the company wasn't sweating the potential financial fallout from tariffs at this point.
The vast majority of parts for Boeing’s commercial and military jets and other equipment comes from the U.S., and the company has an extensive parts backlog after production was slowed or shut down for much of last year.
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A Boeing 737-800 operated by Virgin Australia. Boeing needs to churn out more 737 narrowbodies to shore up its finances.
Boeing delivered jets at a steady clip in February, but shipped out fewer of its profitable 737 MAXs than in January.
The aerospace company delivered 44 planes last month, including 32 737s. That was down from 40 737 deliveries the month before.
Boeing needs to churn out more of the bestselling 737 narrowbodies to shore up its finances. Analysts say Boeing is approaching the 38-per-month rate Chief Executive Kelly Ortberg says is needed for the company to turn cash-flow positive.
February’s tally of deliveries also included five 787 Dreamliners, five of its soon-to-be-discontinued 767s and a pair of 777 freighters. China was a big recipient, accounting for eight of the deliveries.
Boeing booked 13 orders in February, all for MAX planes. Its backlog was 5,528 planes at the end of February.
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Foreign visitor arrivals to Japan rose 47% to a record 36.9 million in 2024
ANA Holdings announced on Tuesday that it has decided to order up to 77 aircraft from the three companies
ANA Holdings plans to buy more than $14 billion of jets from Boeing, Airbus and Embraer, partly to meet rising travel demand to Japan.
The Japanese airline on Tuesday said it decided to order up to 77 aircraft from the three companies to support medium- to long-term international growth and meet demand changes in its domestic operations. The carrier had restricted fleet renewal during the pandemic.
The planes have a total catalog price of about 2.158 trillion yen, equivalent to $14.41 billion, and are expected to be delivered by around 2033.
ANA said the group’s fleet will rise to about 320 jets by around 2030.
ANA said it will order 18 Boeing 787-9s in anticipation of strong travel demand between Asia and North America. For domestic routes, it will order up to 20 Embraer E190-E2s, which the company hopes will help reduce fuel consumption. It will also order up to 39 other planes primarily to update its current fleet.
Foreign visitor arrivals to Japan rose 47% to a record 36.9 million in 2024, according to the Japan National Tourism Organization.
In March last year, Japan Airlines said it planned to buy 42 jets from Airbus and Boeing to be delivered over the next decade. Catalog prices of the 42 aircraft totaled Y1.870 trillion, according to figures provided by the company.
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