8 July 2009

Boeing deals for 787 assembly plant

Boeing Co. will pay $580 million to Vought Aircraft Industries for its South Carolina plant where they build the company's Boeing 787 Dreamliner.

As a part of the deal, Vought will not have to repay money advanced to them earlier for the North Charleston, S.C., plant.

The acquisition boosts Chicago-based Boeing’s construction capacity for large airplanes. Boeing Commercial Airplanes Chief Executive Scott Carson said the acquisition will increase productivity and efficiency.

Vought will continue to build components for the 787 as well as the 737 and 777.

To date, 850 Boeing 787s are on order with 56 customers as of June. However, production delays have been a problem. Originally scheduled to enter service in May 2008, production suffered delays multiple times, and as of May 2009 the company said the jet should enter into service in 2010.

The 787-8 Dreamliner will carry 210 - 250 passengers on routes of 7,650 to 8,200 nautical miles (14,200 to 15,200 kilometers), while the 787-9 Dreamliner will carry 250 - 290 passengers on routes of 8,000 to 8,500 nautical miles (14,800 to 15,750 kilometers). A third 787 family member, the 787-3 Dreamliner, will accommodate 290 - 330 passengers on routes of 2,500 to 3,050 nautical miles (4,600 to 5,650 kilometers).

In addition to bringing big-jet ranges to mid-size airplanes, the 787 should provide airlines with fuel efficiency, resulting in exceptional environmental performance. The airplane will use 20% less fuel than today’s similarly sized airplane. It will also travel at speeds similar to today’s fastest wide bodies, Mach 0.85. Another upside is airlines will be able to reap more cargo revenues with its increased capacity.

The key to the increased performance, Boeing officials said, is a suite of new technologies. Boeing said as much as 50% of the primary structure, including the fuselage and wing, on the 787 will consist of composite materials.

An open architecture will be simpler than today’s airplanes and offer increased functionality. In one case, Boeing will incorporate systems that will allow the airplane to self-monitor and report maintenance requirements to ground-based computer systems.

The deal should close in the third quarter, officials said.

For related information, go to www.isa.org/productivity.