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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 imposed conditions on Boeing's $4.7 billion acquisition of Spirit AeroSystems to maintain market competition.
  • Boeing must divest Spirit's aerostructures businesses that supply Airbus, transferring them directly to Airbus, and sell Spirit's Subang, Malaysia division to Composites Technology Research Malaysia.
  • Spirit will also be required to continue supplying military aircraft components to Boeing's competitors without discrimination and protect their confidential information.
  • These conditions aim to prevent Boeing from limiting competitors' access to crucial aerostructure products and technologies, ensuring a level playing field in the aerospace industry.
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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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