((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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The European company Airbus
AIR.PA on Monday outlined terms under which it plans to buy some loss-making businesses of Spirit AeroSystems SPR.N as part of a broader plan to break up the supplier between Airbus and rival Boeing BA.N .
The deal sees Airbus resume operations at loss-making factories that supply key parts for its A220 and A350 jetliners.
Airbus will be compensated for agreeing to resume work with a payment of $559 million from Spirit, while it will pay a nominal sum of $1 for the assets, depending on the final outlines of the agreement, a he declared in a press release.
The European aircraft manufacturer did not specify the compensation mechanism, which arises from the financial situation of the activities it is acquiring following Spirit’s decision to sell the rest of the company to its former owner Boeing.
Airbus, which last week lowered its delivery and production forecasts, said the deal would “ensure stability of supply for its commercial aircraft programs through a more sustainable approach, both operationally and financially.
Confirming a Reuters report, it said it would resume operations at four Spirit factories in the United States, Northern Ireland, France and Morocco that do work for the A350 and A220 jets. It will also resume minor work done for the A220 in Wichita, Kansas, where Spirit is based.
The deal is subject to due diligence, Airbus said.