Boston, MA 06/13/2014 (wallstreetpr) – The Boeing Company (NYSE:BA) has affirmed that Japanese firms named Mitsubishi Heavy Industries Ltd, Kawasaki Heavy Industries Ltd and Fuji heavy Industries will remain as its key partners consequently awarding them with 21% work share for the latest jetliner 777x
Boeing Conventional Approach
Five Japanese companies are expected to build fuselage sections, as well as landing gears and center wing sections and bulkheads. The 21% work share is slightly lower compared to 35% carbon fiber that the Japanese partners were entitled to the 787 Dream liner. A drop in stakes in this case is seen as one of the ways that the Boeing Company (NYSE:BA) is trying to avoid delayed deliveries as it experienced with 787 global supply chains.
The Boeing Company (NYSE:BA) is taking conventional approach in the building of 777X, which unlike the all-carbon fiber Dream liner will use more metal fuselage. Wings for the 777X will be made in the U.S by Boeing. Mitsubishi heavy is thought to have tabled in the eleventh hour, a bid to win the wing business after workers in the U.S first rejected a labor deal.
Japans Recovering Aerospace Industry
Japan’s government is confident that The Boeing Company (NYSE:BA) has the capability if playing a crucial role in the building of the aerospace industry that was dismantled after World War II. There are about 22,000 engineers in Japan of whom 40% work on Boeing jets according to estimates by the company. Concerns were raised last year about the possibility of Boeing continuing with its operation in the country after Japan Airlines opted to order 31 A350’s from Airbus rather than Boeing
Boeing to Benefit from Emirates Air’s Airbus Cancellation
Emirates airlines has canceled its entire order of 70 planes from Airbus paving way for The Boeing Company (NYSE:BA) to reap a great deal from an order of 150 orders of 777x placed in November at the Dubai Air Show. The order also has an option of a further 50 planes valued at $76 billion.