Spirit AeroSystems
Encyclopedia
Spirit AeroSystems, Inc. ("Spirit" ), based in Wichita, Kansas
, is the world's largest first-tier aerostructure
s manufacturer. The company builds several important pieces of Boeing aircraft, including the fuselage of the 737
, portions of the 787
fuselage, and the cockpit (referred to as "Section 41
" by Boeing) of nearly all of its airliners. Spirit also produces fuselage sections and front wing spars for the Airbus A350
. Spirit's main competition comes from Vought Aircraft Industries
, Goodrich
, Alenia
, and Kawasaki Heavy Industries.
Spirit was formed when Boeing Commercial Airplanes
sold its Wichita division to investment firm Onex. Boeing Defense, Space & Security retained its military business in Wichita, which lies on neighboring land. The Wichita division was responsible for construction of many important aircraft in Boeing's history, including the B-29 Superfortress
, B-47 Stratojet
, and B-52 Stratofortress
. Spirit can trace its legacy back even further to Stearman Aircraft
, which was founded on the same site. Stearman later became part of Boeing. Spirit also includes North American Aviation
's former Tulsa
and McAlester
facilities (both in Oklahoma
.)
On January 31, 2006, BAE Systems
announced it had agreed to sell its aerostructure
s business, based at Glasgow Prestwick Airport and Samlesbury Aerodrome
, to Spirit. The BAE unit, which was renamed Spirit AeroSystems (Europe) Ltd., is a major supplier to Raytheon
(5%), Airbus
(80%), and Boeing (15%). The transaction was completed on April 1, 2006. With this purchase, Spirit is no longer critically dependent upon a single customer for business.
In 2010, 96% of Spirits revenue came from its two largest customers, 85% of sales were from Boeing, 11% from Airbus. In 2009 these two customers represented 96% of sales for Spirit as well.
After planning to take Spirit public, at initial public offering
on November 21, 2006, the firm's stock rose 10% on the first day. Onex still owns 58% of Spirit, which results in 92% of voting power, as its shares confer "supervoting" power.
Former House
Majority Leader Richard Gephardt
(D
-MO
) serves as a labor consultant for Spirit and sits on its board of directors.
In July 2011, Spirit Aerosystems walked out of negotiations with the union that represents its engineering, technical and professional workforce. The union subsequently voted the company's last contract offer receiving a 96.5% rejection vote. The company did not change its contract offer significantly after this rejection and relations with its workforce have been contentious ever since. With negotiations at a standstill, production schedules for 2011 and 2012 are threatened.
Wichita, Kansas
Wichita is the largest city in the U.S. state of Kansas.As of the 2010 census, the city population was 382,368. Located in south-central Kansas on the Arkansas River, Wichita is the county seat of Sedgwick County and the principal city of the Wichita metropolitan area...
, is the world's largest first-tier aerostructure
Aerostructure
An aerostructure is a component of an aircraft's airframe. This may include all or part of the fuselage, wings, or flight control surfaces. Companies that specialize in constructing these components are referred to as "aerostructures manufacturers," though many larger aerospace firms with a more...
s manufacturer. The company builds several important pieces of Boeing aircraft, including the fuselage of the 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...
, portions of the 787
Boeing 787
The Boeing 787 Dreamliner is a long-range, mid-size wide-body, twin-engine jet airliner developed by Boeing Commercial Airplanes. It seats 210 to 290 passengers, depending on the variant. Boeing states that it is the company's most fuel-efficient airliner and the world's first major airliner to use...
fuselage, and the cockpit (referred to as "Section 41
Boeing fuselage Section 41
Section 41 is the forward portion of a Boeing aircraft, from the nose to aft of the cockpit. In some models it includes the forward door and may extend to the first class cabin. Along with the wings, it is one of the most complex parts of an aircraft, and includes the largest share of an...
" by Boeing) of nearly all of its airliners. Spirit also produces fuselage sections and front wing spars for the Airbus A350
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...
. Spirit's main competition comes from Vought Aircraft Industries
Vought
Vought is the name of several related aerospace firms. These have included, in the past, Lewis and Vought Corporation, Chance Vought, Vought Sikorsky, LTV Aerospace , Vought Aircraft Companies, and the current Vought Aircraft Industries. The first incarnation of Vought was established by Chance M...
, Goodrich
Goodrich Corporation
The Goodrich Corporation , formerly the B.F. Goodrich Company, is an American aerospace manufacturing company based in Charlotte, North Carolina. Founded in Akron, Ohio in 1870 as Goodrich, Tew & Co. by Dr. Benjamin Franklin Goodrich. The company name was changed to the "B.F...
, Alenia
Alenia Aeronautica
Alenia Aeronautica, a Finmeccanica subsidiary, is a European aerospace company from Italy. Its subsidiaries include Alenia Aermacchi and Alenia Aeronavali...
, and Kawasaki Heavy Industries.
Spirit was formed when Boeing Commercial Airplanes
Boeing Commercial Airplanes
Boeing Commercial Airplanes designs, assembles, markets and sells large commercial jet aircraft and provides product-related maintenance and training to customers worldwide...
sold its Wichita division to investment firm Onex. Boeing Defense, Space & Security retained its military business in Wichita, which lies on neighboring land. The Wichita division was responsible for construction of many important aircraft in Boeing's history, including the B-29 Superfortress
B-29 Superfortress
The B-29 Superfortress is a four-engine propeller-driven heavy bomber designed by Boeing that was flown primarily by the United States Air Forces in late-World War II and through the Korean War. The B-29 was one of the largest aircraft to see service during World War II...
, B-47 Stratojet
B-47 Stratojet
The Boeing Model 450 B-47 Stratojet was a long-range, six-engined, jet-powered medium bomber built to fly at high subsonic speeds and at high altitudes. It was primarily designed to drop nuclear bombs on the Soviet Union...
, and B-52 Stratofortress
B-52 Stratofortress
The Boeing B-52 Stratofortress is a long-range, subsonic, jet-powered strategic bomber operated by the United States Air Force since the 1950s. The B-52 was designed and built by Boeing, who have continued to provide maintainence and upgrades to the aircraft in service...
. Spirit can trace its legacy back even further to Stearman Aircraft
Stearman Aircraft
Stearman Aircraft Corporation was an aircraft manufacturer in Wichita, Kansas. Although the company designed a range of other aircraft, it is most known for producing the Model 75, which is commonly known simply as the "Stearman" or "Boeing Stearman"....
, which was founded on the same site. Stearman later became part of Boeing. Spirit also includes North American Aviation
North American Aviation
North American Aviation was a major US aerospace manufacturer, responsible for a number of historic aircraft, including the T-6 Texan trainer, the P-51 Mustang fighter, the B-25 Mitchell bomber, the F-86 Sabre jet fighter, the X-15 rocket plane, and the XB-70, as well as Apollo Command and Service...
's former Tulsa
Tulsa, Oklahoma
Tulsa is the second-largest city in the state of Oklahoma and 46th-largest city in the United States. With a population of 391,906 as of the 2010 census, it is the principal municipality of the Tulsa Metropolitan Area, a region with 937,478 residents in the MSA and 988,454 in the CSA. Tulsa's...
and McAlester
McAlester, Oklahoma
McAlester is a city in Pittsburg County, Oklahoma, United States. The population was 17,783 at the 2000 census. It is the county seat of Pittsburg County. It is currently the largest city in the Choctaw Nation of Oklahoma, followed by Durant....
facilities (both in Oklahoma
Oklahoma
Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
.)
On January 31, 2006, BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
announced it had agreed to sell its aerostructure
Aerostructure
An aerostructure is a component of an aircraft's airframe. This may include all or part of the fuselage, wings, or flight control surfaces. Companies that specialize in constructing these components are referred to as "aerostructures manufacturers," though many larger aerospace firms with a more...
s business, based at Glasgow Prestwick Airport and Samlesbury Aerodrome
Samlesbury Aerodrome
Samlesbury Aerodrome is a disused airfield at Balderstone near Samlesbury, in the Ribble Valley district of Lancashire. The aerodrome is owned by defence company BAE Systems which uses the site for manufacturing of several aircraft types...
, to Spirit. The BAE unit, which was renamed Spirit AeroSystems (Europe) Ltd., is a major supplier to Raytheon
Raytheon
Raytheon Company is a major American defense contractor and industrial corporation with core manufacturing concentrations in weapons and military and commercial electronics. It was previously involved in corporate and special-mission aircraft until early 2007...
(5%), Airbus
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
(80%), and Boeing (15%). The transaction was completed on April 1, 2006. With this purchase, Spirit is no longer critically dependent upon a single customer for business.
In 2010, 96% of Spirits revenue came from its two largest customers, 85% of sales were from Boeing, 11% from Airbus. In 2009 these two customers represented 96% of sales for Spirit as well.
After planning to take Spirit public, at initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on November 21, 2006, the firm's stock rose 10% on the first day. Onex still owns 58% of Spirit, which results in 92% of voting power, as its shares confer "supervoting" power.
Former House
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
Majority Leader Richard Gephardt
Dick Gephardt
Richard Andrew "Dick" Gephardt is a lobbyist and former prominent American politician of the Democratic Party. Gephardt served as a U.S. Representative from Missouri from January 3, 1977, until January 3, 2005, serving as House Majority Leader from 1989 to 1995, and as Minority Leader from 1995 to...
(D
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
-MO
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
) serves as a labor consultant for Spirit and sits on its board of directors.
In July 2011, Spirit Aerosystems walked out of negotiations with the union that represents its engineering, technical and professional workforce. The union subsequently voted the company's last contract offer receiving a 96.5% rejection vote. The company did not change its contract offer significantly after this rejection and relations with its workforce have been contentious ever since. With negotiations at a standstill, production schedules for 2011 and 2012 are threatened.
Facilities
- Wichita, KansasWichita, KansasWichita is the largest city in the U.S. state of Kansas.As of the 2010 census, the city population was 382,368. Located in south-central Kansas on the Arkansas River, Wichita is the county seat of Sedgwick County and the principal city of the Wichita metropolitan area...
(Headquarters, ex-Stearman/Boeing) - McAlester, OklahomaMcAlester, OklahomaMcAlester is a city in Pittsburg County, Oklahoma, United States. The population was 17,783 at the 2000 census. It is the county seat of Pittsburg County. It is currently the largest city in the Choctaw Nation of Oklahoma, followed by Durant....
(ex-North American/Rockwell/Boeing) - Tulsa, OklahomaTulsa, OklahomaTulsa is the second-largest city in the state of Oklahoma and 46th-largest city in the United States. With a population of 391,906 as of the 2010 census, it is the principal municipality of the Tulsa Metropolitan Area, a region with 937,478 residents in the MSA and 988,454 in the CSA. Tulsa's...
(ex-North American/Rockwell/Boeing) - SamlesburySamlesburySamlesbury is a small village and civil parish in the South Ribble borough of Lancashire, England. Samlesbury Hall, a historic house, is located in the village as well as Samlesbury Aerodrome...
, EnglandEnglandEngland is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
(Small office based on a BAE Systems site) - PrestwickGlasgow Prestwick International AirportGlasgow Prestwick Airport is an international airport serving the Greater Glasgow urban area, situated northeast of the town of Prestwick in South Ayrshire and 32 miles from the city centre of Glasgow....
, ScotlandScotlandScotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, United Kingdom (ex-BAE Systems) - SubangSubang, PetalingSubang is an affluent residential town located in between Shah Alam and Subang Jaya, Selangor, Malaysia. It comprises Kampung Baru Subang, a very well known village in the Klang Valley and the internationally renowned Saujana Golf Resort...
, Malaysia (Manufacturing Plant) - Kinston, North CarolinaKinston, North CarolinaKinston is a city in Lenoir County, North Carolina, United States. The population was 23,688 at the 2000 census. The population was estimated at 22,360 in 2008. It has been the county seat of Lenoir County since its formation in 1791 . Kinston is located in North Carolina's Inner Banks...
(Manufacturing Plant, Global TransParkGlobal TransParkThe North Carolina Global TransPark is a 2,500 acre, multi-modal industrial/airport site in Eastern North Carolina. As an agency of the State of North Carolina, the GTP is considered a key engine for driving the economic of Eastern North Carolina. The park offers access to multi-modal...
) - Jinjiang City, ChinaChinaChinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
(Joint Venture) - Saint Nazaire, FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
(Manufacturing Plant) - MoscowMoscowMoscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
, RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
(Joint Venture)
External links
- "Spirit gets first shot at non-Boeing job", Wichita Business Journal, October 16, 2005