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 Boeing, Airbus Face Delays On Parts Shortage - Report
Aviation Boeing and Airbus are facing a slowdown on their older model assembly lines because of a shortage of basic components such as seats, toilets and galleys, the Wall Street Journal reported on Friday. The production disruption was raising costs and delaying millions of dollars in payments from customers, the paper said. Managers at both companies suggested the holdups could affect this year's financial results, the paper reported. The paper quoted Boeing and Airbus as saying that the delays emerged almost a year ago, but have become much worse this year.

The lack of components stem from small suppliers that have overcommitted to build equipment and did not gear up production fast enough to deliver it, the paper said. On Thursday, Boeing announced the first cancellation of an order for its delayed 787 Dreamliner, signaling that airlines may be getting impatient for deliveries of the new, fuel efficient plane. Also on Thursday United Airlines said it may cancel an order for 42 Airbus aircraft, forfeiting a USD$91 million dollar deposit and possibly heralding a wave of deferrals and cancellations for the major plane makers as their customers scale back growth plans.

  Posted on Sunday, August 10 @ 09:08:02 PDT by akzah
 
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