Wings and mid-fuselage for the A220 will continue to be manufactured on the former Bombardier site in Belfast as part of a new agreement between Airbus and Spirit AeroSystems.
The agreement is part of a definitive agreement signed by a Airbus with Spirit AeroSystems for the acquisition of industrial assets to support its commercial aircraft programmes, but it comes with the proviso: “unless Spirit AeroSystems identifies a suitable buyer for the part of the site where these activities are located.”
Spirit AeroSystems has shifted ownership from Bombardier to Airbus, highlighting a significant industry transition.
Boeing’s buyback of its independent aerostructures supplier has influenced the market dynamics. The competing aviation companies decided to intervene to prevent the collapse of Spirit AeroSystems amid ongoing financial stress caused by Boeing’s 737 MAX crisis.
Spirit’s Belfast plant, which produces carbon-fibre wings for the A220, employs 2,600 people and is one of the two facilities involved in the Airbus deal.
The deal includes a $439 million compensation from Spirit to Airbus for assuming loss-making production, which is reduced from the initially planned $559 million.
Spirit’s Belfast operation not only supplies Airbus but also produces parts for Bombardier private jets and is involved in defence and space projects, reporting a loss of $338 million in 2023.
Recent communications from Boeing CEO Stephanie Pope and Spirit CEO Pat Shanahan indicated that non-Airbus work in Belfast may be transferred to Boeing if no alternative solutions materialise.
Airbus plans to acquire production of wing components for A320 and A350 jets located in Prestwick, Scotland, as part of the deal.
The agreement stipulates Airbus will receive $439 million from Spirit to cover loss-making production, a reduction from the initial $559 million due to scope changes.
Delays caused by Spirit have impacted A350 passenger jet deliveries and the freighter development timeline, with both companies expecting the complex deal to conclude by the third quarter.
Boeing’s decision to pursue the buyback of its former subsidiary coincided with an increase in production of the 737 MAX jet after operational challenges in 2024.
Spirit Aero, responsible for manufacturing the fuselage for the MAX, expressed concerns about its future viability and has received financial assistance from Boeing and Airbus.
In February, Spirit Aero reported financial liquidity of $890 million, yet anticipates a cash outflow of $650-700 million in the first half of 2025.
Airbus CFO Thomas Toepfer shared that the agreement with Spirit is expected to be finalised by the end of April. The overarching deal involving Boeing is projected to close in the third quarter of 2025.
Recent reports suggested Airbus might temporarily take over all Belfast operations, including non-Airbus work, to avoid immediate disruption. This would provide a grace period to find buyers for non-Airbus assets, mitigating short-term job losses but not resolving long-term uncertainty.
The Belfast facility on Airport Road West, part of the Belfast Harbour Estate, originally the Short and Harland factory site, is purpose-built for A220 composite wings using resin transfer infusion (RTI), is critical to Airbus’s goal of increasing A220 output.
Other locations
The agreement between Airbus and Spirit AeroSystems also includes locations such as the Kinston site in North Carolina and St. Nazaire in France for A350 fuselage sections, Casablanca in Morocco for A321 and A220 components and Wichita, Kansas for the production of A220 pylons, with the acquisition amounting to $439m subject to adjustments at closing.
The carve-up of Spirit AeroSystems between Boeing and Airbus has stimulated broader consolidation in the aerospace supply chain, driven by quality control issues (e.g., Boeing 737 MAX incidents) and financial pressures. Airbus’s acquisition ensures control over critical A220 components, vital for competing with Boeing’s narrow-body jets.
Airbus anticipates the official transfer of operations in the third quarter of 2025, pending necessary regulatory approvals.
Belfast’s role in A220 wing production
For the time being, this deal secures Belfast’s role in A220 wing production, supported by facility expansions and increased output targets, potentially stabilizing 40pc of the workforce. The planned divestiture of non-Airbus operations, employing 60pc of the 3,500 staff, poses significant risks of job losses, reduced industrial capacity, and economic disruption. Unions and politicians urge a single-operator solution to preserve Belfast’s aerospace ecosystem, but uncertainty persists for non-Airbus work.
The relationship between Airbus and Spirit AeroSystems has evolved in recent years from collaborative projects, like the CityAirbus NextGen, to a transformative acquisition agreement in 2024, with Airbus set to take over Spirit’s A220 operations in Belfast by mid-2025.
Spirit AeroSystems, a major aerostructures manufacturer, has been a key supplier for Airbus, notably producing wings and mid-fuselage sections for the Airbus A220 at its Belfast facility, and fuselage sections for the A350 in Kinston, North Carolina, and St. Nazaire, France.
In 2022, Airbus partnered with Spirit for the development of the CityAirbus NextGen, an electric vertical takeoff and landing (eVTOL) prototype. Spirit’s Belfast plant was tasked with designing and manufacturing the wings, leveraging its expertise in composite manufacturing to optimize flight efficiency and safety.
In March 2024, Airbus and Spirit explored the possibility of Airbus acquiring Spirit’s Belfast plant, which manufactures A220 wings. This followed Boeing’s talks to reacquire Spirit, its former subsidiary, amid financial and quality control challenges at Spirit. The Belfast plant, acquired by Spirit from Bombardier in 2020, was seen as critical for Airbus’s A220 program, but no deal was imminent at the time due to pricing disputes and the unprofitability of A220 wing production. Spirit’s Belfast operations were reportedly loss-making, with cumulative losses exceeding $1bn since 2019, driven by global economic pressures and the unprofitable A220 contract. Airbus sought price reductions, while Spirit pushed for higher payments, leading to an “impasse” in negotiations.
On July 1, 2024, Airbus entered into a binding term sheet agreement with Spirit AeroSystems for the potential acquisition of major Airbus-related activities. This included the Belfast plant’s A220 wing and mid-fuselage production, alongside facilities in Casablanca, Kinston, St. Nazaire, and Wichita. As part of the deal, Spirit would pay Airbus $559m to assume these operations, with Airbus paying a nominal $1, reflecting the unprofitability of these assets. The deal, expected to close by mid-2025 pending regulatory approval, aims to stabilize Airbus’s supply chain for the A220 and A350 programs.
Boeing agreed to reacquire Spirit’s core operations (e.g., Wichita and Tulsa plants) for $4.7bn, carving up Spirit’s global business between the two aerospace giants. Spirit planned to divest non-Airbus operations in Belfast, Prestwick, Subang, and other facilities.
In March 2025, Spirit AeroSystems revived plans to expand its Belfast facility to meet Airbus’s increased A220 production targets (160 wing sets per year). The two-phase expansion, originally proposed in 2019, includes facility upgrades to support operational needs, with phase 1a delivering immediate benefits. This move aligns with Airbus’s goal to boost A220 production by 50pc in 2024 and further in 2025.
Reports suggested Airbus might acquire the entire Belfast operation, including non-Airbus work (e.g., Bombardier business jet components), at least in the short term, to maintain operational integrity before divesting non-strategic assets.
Belfast’s aerospace sector
Belfast’s aerospace sector, valued at £1.9bn and employing 10,000 (including supply chains), relies on Spirit’s integrated operations. Dismantling the non-Airbus business could disrupt the regional supply chain, impacting smaller firms and the wider economy.
Spirit AeroSystems is the largest manufacturing employer in the six counties, with approximately 3,500 staff in Belfast. About 40pc (2,200 workers) are engaged in Airbus programs (A220 wings and fuselage), while 60pc (1,400 workers) focus on non-Airbus work, such as Bombardier business jets and defense projects.
The acquisition agreement raised concerns about the non-Airbus segment, which Spirit plans to sell separately. Trade unions, including Unite and GMB, warned that splitting the workforce could lead to job losses, loss of economies of scale, and reduced technological synergies, threatening Belfast’s aerospace sector.
It was estimated that Airbus’s takeover of the A220-related operations could secure jobs for the 40pc of workers involved, supported by planned investments and production ramps. The expansion plans signal long-term commitment to Belfast as a hub for A220 wing production, potentially sustaining high-skill STEM jobs.
Non-Airbus work, including Bombardier fuselages and defense projects like Team MOSQUITO for London’s Ministry of Defence, recently proved important for Belfast’s diverse aerospace expertise. Unions have argued that divestiture could weaken this ecosystem, limiting future opportunities in business jets or defense programmes.
Unions have demanded that the Belfast operation remain a single entity under one owner to preserve jobs and skills.
Producing aircraft since 1937
Historically Short Brothers, the Belfast plant has been a cornerstone of the region’s industry since the 1930s, surviving wars and economic challenges. Its potential fragmentation is seen as a threat to a key source of well-paid employment in a region lagging behind the rest of the island economically.
Short and Harland Ltd, a joint enterprise of Harland and Wolff and Short Brothers, an English firm, opened an aircraft factory in Belfast in 1937. During world war II they employed some 14,000 workers and specialised in producing Stirling bombers and Sunderland flying boats.
The site in East Belfast is an important hotbed of unionist political support, with a history of violent anti-Catholic pogroms. Catholics were forcibly driven from the factory workplace in 1943 and 1969. The plant hosted the famous rally in September 1971, addressed by Ian Paisley and William Craig and attended by 15,000 unionist militants which advocated expelling the few remaining Catholic workers from both the aircraft factory and the formerly more important neighbouring shipyard, where numbers of employees were declining, and further pogroms and violence against the Catholic community of Belfast.
This rally led directly to the foundation of the Democratic Unionist Party on September 14 1971. Since then the DUP has become the dominant party among the pro-British factions in the north.
The Belfast operation’s $1bn losses since 2019, exacerbated by inflation, energy costs, and unprofitable A220 contracts, underline the financial burden Airbus is assuming. The $559m compensation from Spirit reflects the operation’s challenges but also Airbus’s strategic need to control A220 production.
A written statement from Airbus shared, “With this operation, Airbus aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward.”
