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Boeing Ordered to Divest Spirit AeroSystems Assets

FTC condition means some businesses will be transferred to Airbus.

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A 737 fuselage [Credit: Shutterstock/VDB Photos]
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Key Takeaways:

  • The Federal Trade Commission (FTC) has approved Boeing's $4.7 billion acquisition of Spirit AeroSystems, but only under strict conditions aimed at preserving competition.
  • Key conditions include Boeing divesting Spirit's aerostructure businesses that supply Airbus directly to Airbus, and selling Spirit's Malaysia division to Composites Technology Research Malaysia.
  • Spirit is also required to continue supplying military aircraft components to Boeing's competitors without discrimination and to protect their confidential information.
  • These mandates are designed to prevent Boeing from leveraging the acquisition to unfairly limit competitors' access to essential aerostructure products and technologies.
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The Federal Trade Commission (FTC) has attached conditions to Boeing’s proposed acquisition of Wichita, Kansas-based Spirit AeroSystems, including a transfer of certain business segments to rival Airbus.

For the $4.7 billion deal to move forward, the FTC said this week, Boeing must divest Spirit businesses that supply aerostructures to Airbus, including all assets and personnel. The assets will be divested to Airbus.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.

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