‍SEATTLE — Boeing has completed its long-anticipated takeover of Spirit AeroSystems, closing a deal valued at US$4.7 billion for the bulk of the world’s largest independent aerostructures supplier and marking one of the most significant commercial aerospace supply-chain realignments in decades, Bloomberg reports.

The transaction, first announced in July 2024 and valued at $8.3 billion overall, returns Spirit’s Boeing-focused commercial operations to the manufacturer after nearly 20 years of separation. Airbus simultaneously confirmed it has finalized the acquisition of Spirit assets tied to its own supply chain, effectively dismantling the once-independent supplier along customer lines.

Boeing shares rose about 2% following the announcement, while Airbus shares gained nearly 1%, reflecting investor approval of tighter manufacturing control, according to BNN Bloomberg.

Dissecting Spirit’s Breakup

Under the finalized structure:

• Boeing absorbs all Spirit operations supporting Boeing commercial programs, including fuselage production, as well as parts of Spirit’s Belfast, Northern Ireland business, which will operate as a standalone subsidiary branded Short Brothers.
• Airbus takes over Spirit facilities supporting Airbus programs in North Carolina, Northern Ireland, Scotland, France, and Morocco, and will receive $439 million in compensation as part of the deal, Bloomberg notes.
• Spirit’s Subang, Malaysia facilities have been spun off to Composites Technology Research Malaysia, while Fiber Materials was sold earlier this year to Tex-Tech Industries.

Spirit, founded in 2005 after Boeing sold its Wichita and Oklahoma operations to Onex, has struggled financially in recent years while supplying both rivals. Its Wichita facility produces 737 fuselages, which are shipped by rail to Boeing’s Renton, Washington final-assembly plant—a process that has faced repeated quality and delivery challenges.

Production Stability and Regulatory Clearance

Both Boeing and Airbus have cited Spirit as a bottleneck affecting aircraft output, including Boeing’s 737 MAX and Airbus’ A350 and A220 programs. Bloomberg reports that Boeing has made fuselage quality and manufacturing discipline central to its effort to stabilize MAX production.

The U.S. Federal Trade Commission cleared the deal in early December, contingent on agreed divestments and assurances that Spirit would continue supplying competitors for future military programs. Boeing also secured EU antitrust approval in October after agreeing to sell select Spirit assets.

Labor Implications Loom

The transaction brings approximately 15,000 Spirit employees into Boeing, rekindling labor considerations. Around 6,000 Spirit workers are represented by the International Association of Machinists and Aerospace Workers and may rejoin IAM District 751, the same union that staged a seven-week strike last year that halted much of Boeing’s commercial production.

What This Means for the Industry

Vertical integration is back. After decades of outsourcing risk, Boeing and Airbus are reclaiming direct control of critical structures, signaling an industry-wide reassessment of Tier 1 supplier dependence.

Supplier independence has limits. Spirit’s collapse under the weight of supporting two competing OEMs underscores how fragile the “shared supplier” model becomes during sustained production stress.

Quality now outweighs cost efficiency. This move prioritizes coherence, accountability, and production stability over short-term savings—especially for structurally critical components like fuselages and wings.

Labor and execution risks remain. Bringing thousands of unionized workers back in-house simplifies oversight but raises near-term labor-relations risks, particularly at Boeing.

Ultimately, the Spirit deal represents a structural reset: Boeing and Airbus are choosing control over complexity, betting that tighter integration will prevent the cascading failures that have defined post-pandemic aerospace manufacturing.