Why Boeing has stopped making 777 freighter for 2 months
What's the story
Boeing's production of the 777 freighter has been stalled for nearly two months, thanks to a dispute with a small Florida-based supplier. The conflict has also affected the output of the 767 series, including freighters and KC-46 aerial refueling tankers. The information comes from Boeing workers and court filings reviewed by Reuters.
Impact
Production halt costing Boeing $6.5M per day
In August, Boeing filed a complaint against the supplier, Vaero, for allegedly halting deliveries of a crucial wing component, the trailing-edge rib kit.
The stoppage has brought work at Everett, Washington's wing-production facility to a standstill. This facility supports both the 777 freighter and 767 programs.
The disruption is costing Boeing as much as $6.5 million per day, according to court documents reviewed by Reuters.
Supply chain strategy
Boeing's shift to sourcing parts from suppliers
Boeing, a century-old player in the aviation industry, has mostly manufactured its aircraft components in-house.
However, since 2003 and the launch of the Boeing 787 Dreamliner program, it has shifted focus to sourcing parts from suppliers worldwide as part of aggressive cost-cutting measures.
This strategy has been blamed for several of Boeing's recent troubles, including quality and safety concerns.
Ongoing disruption
Fragility of aerospace supply chains
Despite a settlement reached in late September, production of the 777 freighter has yet to resume.
The delay underscores the fragility of aerospace supply chains and how a dispute with one supplier can halt production of highly sought-after aircraft.
Boeing is now working on bringing production of the trailing-edge rib kit in-house.
Model stability
Impact on other aircraft models
The trailing-edge rib kit is used in wing assembly for the 767 and current-generation 777 freighter.
However, Boeing's 777X model, which uses composite wings, has not been affected by this supplier dispute.
Without Vaero parts, Boeing had to remove two partially assembled 777 freighters from its final assembly line.