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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 specific conditions on Boeing's proposed $4.7 billion reacquisition of Spirit AeroSystems to ensure fair competition.
  • Key conditions require Boeing to divest Spirit's aerostructure businesses that supply Airbus directly to Airbus, including assets and personnel.
  • Spirit's Subang, Malaysia division, which produces aerostructures for both Boeing and Airbus, must be sold to Composites Technology Research Malaysia.
  • Spirit is also mandated to continue work for Boeing's military aircraft competitors, prevent discrimination, and protect confidential information to avoid anti-competitive behavior by Boeing.
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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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