June 13, 2014 in Business

Boeing signs deal for five Japanese companies to build key parts for 777X jets

Yuri Kageyama Associated Press
 
Associated Press photo

Representatives of Boeing and five Japanese companies sign a deal Thursday in Tokyo to manufacture key components for its twin-aisle 777X jets.
(Full-size photo)

Orders

Boeing already has 260 orders for the 777X, including an order from Japan’s All Nippon Airways. Japan Airlines, which has had a long relationship with Boeing, has not ordered them yet.

TOKYO – Boeing inked a deal Thursday for five Japanese companies to manufacture key components for its twin-aisle 777X jets but the contract doesn’t include making the wings, which were a source of delays for the 787 Dreamliner.

The Japanese manufacturers will make about 21 percent of the new plane’s structural components, including fuselage sections and landing gear wells.

Difficulties in fitting the wings to the body of Boeing’s Dreamliner in the U.S. contributed to delays during the manufacturing of the aircraft. The Japanese furnish about 35 percent of the 787, which was the first Boeing plane to have a wing designed and built by a foreign company. Deliveries were delayed for about three years because of various problems.

Boeing Commercial Airplanes President and CEO Ray Conner said having the Japanese make more parts for the 777X was considered, but the decision was to have Boeing make the wing.

“This is a partnership that will endure for many, many years to come,” Conner said after Boeing, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Fuji Heavy Industries, ShinMaywa Industries and NIPPI Corp. signed the deal Thursday at a Tokyo hotel.

Twenty-one percent is the same level Japanese manufacturers got for the predecessor 777 aircraft, one of the most popular commercial jets on the market.

The Japanese manufacturers said the contract was a reflection of their reputation for quality production and punctual deliveries.

The 777X, set for delivery from 2020, is billed as 12 percent more fuel efficient than rival Airbus’ A350.

Earlier this week, Emirates Airlines canceled its order for 70 of Airbus’ A350 aircraft, the European maker’s answer to the domination of the 777 and 787. The A350 has also been plagued by delays. Emirates has ordered 150 777X jets.

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