Boeing Strike Hoses 787 Suppliers and Airlines

Sure, the striking Boeing machinists will cost the company $100 million a day (and one penny of earnings) (Reuters). But the squabble is also wreaking havoc on aerospace suppliers and airlines around the world:

The result of outsourcing, especially on the 787, means the effect of the stoppage will be felt around the world, piling up inventories and putting pressure on Asian and European suppliers responsible for much of the main body of Boeing’s newest aircraft.

Japan’s heavy engineering firms Mitsubishi, Kawasaki and Fuji are taking part of the project risk in developing new carbon-fibre fuselage and wing structures for the 787, and stand to lose if the project is further derailed.

Italy’s Alenia, a unit of aerospace and defence giant Finmeccanica, is Europe’s biggest player on the 787, building parts of the fuselage and tail.

In the United States, Spirit Aerosystems Holdings Inc, a former Boeing unit making the front fuselage, looks to be the most vulnerable. Aerospace component firms Rockwell Collins Inc and Goodrich Corp may also face inventory problems if Boeing stops taking delivery of parts.

Airlines have been quiet so far on the effects of the strike.

Singapore Airlines, which has 20 of the 787s on order for delivery starting in 2011, said it was in talks with Boeing over how the walkout might affect deliveries.

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