How dispute with sole supplier of an ‘indispensable’ part forced Boeing to halt production of 777 freighter, 767 planes
Written By Bobins Vayalil Abraham
American aviation major Boeing has been forced to halt production of its 777 freighter for nearly two months, Reuters has reported. The disruption, caused by a dispute with a small Florida-based supplier, has also affected the output of the 767, including freighters and KC-46 aerial refueling tankers.
According to the report, which cited court filings and Boeing workers, the planemaker has been involved in a standoff with a small Florida-based supplier, Vaero.
In August, Boeing filed a complaint against Vaero, alleging that the company had stopped delivering a critical wing component known as the trailing-edge rib kit, stalling work at the Everett, Washington, wing-production facility that supports the 777 freighter and 767 programs. Boeing said in the complaint that the trailing-edge rib kit was an "indispensable" part and Vaero was the sole supplier.
According to Boeing, the disruption that halted production of the 777 freighter and 767 was costing the company as much as $6.5 million a day.
Boeing, which has been in the aviation industry for more than a century, has for most of its history built a majority of its aircraft components in-house. However, things changed in 2003, with the launch of the Boeing 787 Dreamliner programme when the focus shifted from in-house manufacturing to sourcing parts from suppliers from around the world as part of its aggressive cost cutting measures. This change has been blamed for many of Boeing’s recent troubles, including quality and safety concerns.
According to Reuters, though the companies reached a settlement in late September, production of the 777 freighter has yet to resume. Since the settlement, Boeing has received some parts for the 767 line, according to a Boeing employee.
The prolonged disruption highlights the fragility of aerospace supply chains, showing how a dispute involving a single supplier can halt production of aircraft that remain in strong demand.
Boeing is trying to bring production of the trailing-edge rib kit in-house, according to two of the people. The component is used in wing assembly for the 767 and current-generation 777 freighter. Boeing's 777X, which uses composite wings, has not been affected.
Without the Vaero parts, Boeing removed two partially assembled 777 freighters from its final assembly line, according to one Boeing worker.
Boeing has delivered 21 777 freighters so far this year, company data show. It also has a handful of freighters whose wings were assembled before the dispute and could still be delivered before year-end, according to two of the Boeing workers.
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