Supplier dispute stalls Boeing production, costing company $6.5M a day

A dispute between Boeing and a Florida-based supplier is impacting Boeing’s 777 freighter production, costing the company about $6.5 million per day. The disruption has stalled work at the company’s Everett location for nearly two months, according to court filings obtained by Reuters.

The disagreement is reportedly over a critical wing component known as the trailing-edge rib kit. Output of Boeing’s 767 aircraft and KC-46 military refueling tankers are also affected.

When did the dispute begin?

Boeing filed a complaint against Vaero, allegedly naming the company as the sole supplier of a critical component in the 777 production process.

In September, the companies reached a settlement. However, production of the 777 freighters has not resumed. Reportedly, three Boeing workers familiar with the matter spoke to Reuters but were not named publicly. They also told Reuters Boeing received some parts for the 767 line.

Boeing removed two 777 freighters that were partially assembled from the final assembly line due to the missing parts, according to one Boeing worker who spoke to Reuters. The company’s 777X line, which uses composite wings, is not being affected.

What else do we know?

Boeing has delivered 21 777 freighters this year, Reuters noted. Some of those freighters were assembled before the dispute.

In the meantime, Boeing is working to bring production of the trailing-edge rib kit in-house. The situation showcases the delicacy of the supply chain in the aerospace field.

News of the production pause follows just one week after Boeing received its 737 MAX 10 certification in Everett. The celebratory milestone was a significant step for the company after two 737 MAX crashes in 2018 and 2019 killed all passengers and crew.

MyNorthwest has reached out to Vaero for comment.

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