Europe's Airbus (AIR.PA) on Monday set out the terms under which it plans to buy certain loss-making activities of Spirit AeroSystems (SPR.N) as part of a planned wider break-up of the supplier between Airbus and rival Boeing (BA.N).
The deal involves Airbus taking over work at loss-making plants that supply key parts for its A220 and A350 passenger jets.
Airbus will be compensated for agreeing to take on the work by a payment of $559 million from Spirit, while it will pay a nominal sum of $1 for the assets, depending on the final outline of the deal, it said in a statement.
The European planemaker did not specify the mechanism of compensation, which stems from the financial condition of activities it is acquiring as a result of Spirit's decision to sell the rest of the company back to its one-time owner Boeing.
Airbus, which last week trimmed delivery and production forecasts, said the deal would "ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially".
The agreement is subject to due diligence, Airbus said.
