Leading Asia-Pacific Customers Finalize Agreements for Boeing Supply Chain Solutions

Staff Report From South Carolina CEO

Friday, February 14th, 2020

Boeing [NYSE: BA] announced supply chain agreements at the Singapore Airshow with multiple airlines and operators. The agreements will enable Asia-Pacific carriers to leverage Boeing’s global supply chain to streamline maintenance, repair, and operations.

Recent supply chain services agreements include:

- All Nippon Airways, the largest airline in Japan, has expanded an agreement for consumable and expendable services to their entire fleet.

- Cathay Pacific, the home carrier of Hong Kong, renewed a multiyear agreement for consumable and expendable services building on a long-standing partnership for spare parts inventory management.

- Evergreen Aviation Technologies Corporation (EGAT), an MRO with a long-standing partnership between EVA Air and General Electric, reached a multiyear Tailored Parts Package agreement. The customized agreement provides comprehensive part coverage from Boeing’s network of global distribution centers to support EGAT’s maintenance, repair, and overhaul operations to a host of global airlines in its service portfolio.

- HAECO, a leading MRO, has reached an expanded agreement for consumables and expendables parts support to include additional supply chain solutions.  

- Xiamen Airlines has reached a three-year agreement for a Tailored Parts Package to support their full fleet of Boeing Next Generation 737 and 787 Dreamliner airplanes.

- KAEMS signed agreement with Boeing for its first integrated inventory management solution for consumables and expendables parts in support of their growing MRO capability.

“Boeing is committed to providing our customers with the support and services necessary to improve airplane performance and streamline operations in the fastest growing aviation markets,” said Ted Colbert, president and CEO, Boeing Global Services. “We are proud of the recent agreements with our partners in the Asia-Pacific region, meeting the demand we are seeing for more integrated solutions.”  

These agreements focus on material solutions that offer customers more inventory control and greater logistics flexibility, by relying on Boeing for material support. Boeing works with customers to identify their operational priorities and build the Tailored Part Package and Consumable and Expendable Services that allow airlines to focus on operations and not parts and inventory management.

Boeing estimates the commercial services market, including business aviation and general aviation, in the Southeast Asia region will reach $3.4 billion over the next 20 years. This growth is driven by demand for customizable maintenance programs and maintenance personnel. Boeing’s aftermarket supply chain, a key capability in supporting increased lifecycle value for customers, provides customers with customizable and flexible materials support tailored to their needs.