BOEING $BA 777 FREIGHTER PRODUCTION HALTED FOR NEARLY TWO MONTHS IN SUPPLIER DISPUTE, SOURCES SAY
The dispute with Flor | Hanami
BOEING $BA 777 FREIGHTER PRODUCTION HALTED FOR NEARLY TWO MONTHS IN SUPPLIER DISPUTE, SOURCES SAY
The dispute with Florida-based supplier Vaero has also disrupted 767 production, including freighters and KC-46 tankers, according to Boeing workers and court filings.
• Boeing's August complaint says Vaero stopped delivering the trailing-edge rib kit, a wing part Boeing calls "indispensable" and says Vaero solely supplies. The disruption was costing Boeing as much as $6.5M a day, per the complaint
• The companies settled in late September, but 777 freighter production has yet to resume, per three Boeing workers
• Boeing has received some 767 parts since the settlement, per one worker
• Boeing is trying to bring production of the part in-house, per two of the people
• Two partially assembled 777 freighters were pulled from final assembly, per one worker. Reuters identified one as destined for FedEx $FDX
• The 777X is unaffected, since its wings are composite
• Boeing has delivered 21 777 freighters this year
Boeing declined to comment. Vaero did not respond. Per Reuters.