Unions Wary
It's a big step for Boeing -- farming out the bulk of wing
construction on its 7E7 Dreamliner to a firm in Japan. But then,
the aircraft itself is seen by the company as a truly international
effort.
The Seattle Post-Intelligencer reports Boeing has never allowed
a contractor to take the lead in building wings for its commercial
aircraft. But it could be a big marketing ploy in a world where
America isn't viewed with the same benevolence that it was in
decades past.
But it's more likely a concession to the vital Japanese market
for commercial airplanes. "To put it simply, Japan is one of the
last jewels left in Boeing's crown," said Richard Aboulafia of the
Teal Group, an industry consulting firm in Fairfax (VA). "There is
nothing like Japan in terms of market size and market loyalty and
industrial loyalty," he said.
"The Japanese have done a very good job over the years and have
just strengthened the relationship with Boeing," said Peter Jacobs,
an industry analyst with Ragen MacKenzie.
"Playing the Japanese card is not just an offensive move for
Boeing, it is a sound defensive move as well," Aboulafia said.
"Look at the A380 business case and the importance of Asia. If
Boeing can keep Japan out of that, they are really doing some
damage to the A380 business case."
Japan's two biggest airlines, All Nippon Airways and JAL, are
expected to be 7E7 launch partners. Other international airlines
are sniffing around, but none has so far made a commitment to the
project.
Still, unions in the Puget Sound area, where the aircraft will
undergo final assembly, are wary of the deal. They see the Japanese
partnership in terms of 1,000 jobs lost here in the US.
The Post-Intelligencer quotes Boeing plant worker Bill Barrett,
who says, "The company doesn't even view it (the 7E7) as an
American-made product."
Japan won't get contracts for the entire wing assembly. The
paper reports some of it will be done by Boeing at its facility in
Tulsa (OK). Boeing's Wichita (KS) division, which includes the
Tulsa operations, will make the 7E7 nose section and cockpit. The
company's Winnipeg division in Canada will manufacture the
wing-to-body fairing. The aft fuselage and the horizontal
stabilizer assembly, except for the vertical stabilizer, will be
constructed by both Alenia Aeronautica in Italy and Vought Aircraft
Industries in Texas, sources told the Seattle paper. Some fuselage
work has not yet been assigned.
"One of the many reasons that Boeing absolutely needs to launch
something new is to keep the Japanese in their camp," Aboulafia
said. "If the Japanese can get good technical and industrial
transfer terms from anyone else, they will do so and leave
Boeing."