So the Guv announced huge financial incentives to land Spirit Aerosystems at Kinston’s Global TransPark (GTP). North Carolina will offer Spirit a staggering $100 million grant from its Golden LEAF foundation to build facilities for Spirit. The state is offering other incentives worth millions, too. Spirit makes plane parts and just signed a big contract with Airbus.
But are we fooling ourselves about the payback of this deal? Airlines are paying 70% more for fuel today than last year. Airlines are looking to mergers to cope with the hard times.
Putting aside the checkered history of the GTP and the argument that the state shouldn’t be in the business of corporate welfare, one would have to question the wisdom of investing in anything aviation-related right now. The industry is bound to look radically different before the doors open on Spirit’s new facility.