Spirit Aero, Airbus near critical talks on fate of supplier

Spirit AeroSystems and Airbus are dispatching senior executives to a meeting in New York in the coming days to chart a path forward for a takeover of key aircraft-manufacturing assets, according to people familiar with the matter. The face-to-face session is set to involve Spirit CEO Pat Shanahan, while Airbus may send Christian Scherer, the head of its commercial aircraft business, said the people, who asked not to be identified discussing private deliberations. The date and the participants are not final, and the contours of the meeting may change, the people said. Spirit, which was spun out of Boeing in 2005, is in an increasingly stretched financial position as the US planemaker slows output of its key 737 aircraft, the main source of revenue for both manufacturers. Earlier this month, Boeing agreed to inject an additional $425m into the supplier. That came after the companies confirmed they were in merger talks to bolster their factory operations in the wake of a near-catastrophe involving a 737 Max earlier this year. The full extent of Spirit’s financial woes will be laid bare when the Wichita, Kansas-based company reports earnings on May 7. With financial pressure building, the company will need to consider other options if doesn’t soon see progress with Airbus. Those include selling the entire business to Boeing before the European company pries loose the parts that make components for its A350 and A220 jets, two of the people said. “As commercial negotiations with Airbus continue, many options remain viable. We value our partnership with Airbus and are committed to acting in the best interests of the customer, our employees and our shareholders,” said Joe Buccino, a Spirit spokesman. Airbus said the early-stage discussions with Spirit “cover a variety of options, including acquiring from Spirit AeroSystems some of the activities that they carry out for Airbus.” Boeing declined to comment. <br/>