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Spirit Aero to raise funds from Boeing + Airbus: Spirit Aerosystems will receive up to USD 350 mn from Boeing and up to USD 107 mn from Airbus in advance payments to help it stay afloat, as it continues to burn through cash after four consecutive years of losses, Reuters reports. The company is expected to burn through USD 450-500 mn over the last three months of 2024 and 1H 2025.
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Spirit Aero has been facing inventory pile ups and delivery slumps in recent weeks, following the now-settled strike at Boeing. The US planemaker is currently trying to revive production through Spirit Aero, while Airbus depends on them for important parts for the A350 and the A220 jets, according to Reuters. Airbus has warned that delays in parts delivery could hurt A350 deliveries in 2025.
We saw this coming: Boeing was close to a funding agreement earlier this week with Spirit Aerosystems to help them with their finances and fix Boeing’s supply chain issues while reviving its jet production. This came after Spirit Aero voiced concern about not being able to pay its investors within the next 12 months.
ICYMI- Boeing agreed to acquire Spirit Aero for more than USD 4 bn in June. Boeing paid USD 37.25 per share for the firm.
Canada forces end to port work stoppages: Canadian Labor Minister Steven MacKinnon has ordered binding and final arbitration between labor unions and ports ownership to end work stoppages in the ports of Vancouver, Prince Rupert, and Montreal, CNBC reports. The existing collective agreements will remain in place pending a new agreement between dockworker unions and the ports. Negotiations had hit a “total impasse” and if the work stoppages had gone on, they would have affected some USD 1.3 bn in goods, MacKinnon said.
The repercussions of the strike: The strikes impacted both Canadian coasts, with trade to the US possibly taking weeks to recover, as almost 20% of US trade arrives in Canadian ports of Vancouver and Prince Rupert.
ICYMI- Unionized workers launched a strike last week at two Termont-run terminals at Montreal Port, which are responsible for handling 40% of the port’s container traffic. The unlimited strike was called after talks for a new labor contract failed. The Maritime Employers Association called on Minister MacKinnon to intervene and bring back workers and employers to get back to the negotiating table.
IN OTHER CANADA NEWS-
Ontario premier proposes US-Canada trade agreement without Mexico: Ontario, Canada’s largest province, is looking to form a North America trade agreement with only the US if Mexico fails to impose harsher regulations on Chinese imports, Bloomberg reports. “We must prioritize the closest economic partnership on earth by directly negotiating a bilateral US-Canada freetrade agreement that puts US and Canadian workers first,” Ontario Premier Doug Ford said in a post on X.
Behind the blockout: Mexico is being criticized for its lack of alignment with US and Canadian policy on Chinese trade, as they should “at the very least” match the pair’s tariffs, Ford said. Mexico “shouldn’t have a seat at the table to enjoy access to the largest economy in the world,” Ford added.
Background: Canada has slapped a 100% tariff on Chinese EVs and a 25% tariff on Chinese steel and aluminum. This mirrored a similar move by the US and the EU. Tariffs apply to all EVs shipped from China including Tesla vehicles.
