Boeing and Safran have set up a joint venture to design, build and service auxiliary power units for airplanes, marking another big step in Boeing’s drive to build a more integrated supply chain.
“This strategic partnership will leverage Boeing’s deep customer and airplane knowledge along with Safran’s experience in designing and producing complex propulsion assemblies to deliver expanded, innovative services solutions to our customers,” Stan Deal, president and CEO of Boeing Global Services, said today in a news release.
News about the 50-50 joint venture comes a little more than a month after Boeing announced a $4.25 billion deal to acquire KLX Inc., a Florida-based aerospace parts distributor.
Both moves are in line with Boeing’s strategy to grow aviation services into a business that contributes $50 billion annually to the company’s bottom line. They also show that Boeing is willing to move away from traditional supply-chain models.