Component Shortages Halt Boeing 777 Freighter Production for Two Months
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According to Reuters, a supply dispute between Boeing and Vaero-a small Florida-based supplier-over critical wing components has halted production of the 777 freighter for nearly two months, while also disrupting the production of 767 freighters and KC-46 tankers. Although the two parties have reached a settlement, the 777 freighter production line has yet to resume operations.
The dispute centers on "trailing-edge rib kits," which are essential components for the wing assembly of 767s and current-production 777 freighters. Vaero is the sole supplier of these parts to Boeing.
According to three Boeing employees who requested anonymity, as well as court documents, Boeing filed a lawsuit against Vaero in August, alleging that the supplier had ceased deliveries. In its filing, Boeing stated that the supply disruption was costing the company up to approximately $6.5 million per day.
As a result of the supply cutoff, production of the 777 freighter has been effectively suspended since August. Due to the lack of these components, Boeing has removed two partially assembled 777 freighters from its final assembly line-one of which was slated for delivery to FedEx.
Production of the 767 freighter and the KC-46 tanker has also been affected.
However, the report notes that the 777X program, which utilizes composite wings, remains unaffected by the dispute.
Boeing and Vaero reportedly reached a settlement in late September. Since then, the 767 production line has received some parts; however, as of the time of the Reuters report, production of the 777 freighter had not yet resumed.
Separately, sources indicated that Boeing is looking to bring the production of these components in-house to reduce its reliance on a single supplier, though a specific timeline for the resumption of production remains unclear. This production halt comes against a backdrop of continued strong global demand for freighters. Data shows that Boeing has delivered 21 777 freighters so far this year; a small number of additional freighters-for which wing assembly was completed prior to the dispute-may still be delivered before the end of the year.
