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Mike Benbow, Business Editor
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Published: Saturday, November 22, 2008
Strike helped steer suppliers to Airbus
Associated Press and Herald Staff
The Boeing Co.'s rival Airbus said Friday that it benefited from the recently ended Boeing Machinists strike.
The 57-day work stoppage at Boeing's commercial jet factories allowed stretched suppliers more time to focus on orders from the European jet maker rather than on Boeing parts, the company said Friday.
Record-high orders for aircraft at Airbus and Boeing earlier this year meant that the jet makers' suppliers of equipment such as galleys, staircases and seats were having a hard time keeping up with demand. But a two-month strike by factory workers at Boeing that ended Nov. 2 "gave our critical suppliers some breathing space," said Airbus spokesman Justin Dubon.
"Reduced demand from Boeing due to the strike allowed suppliers to focus on Airbus," Dubon said.
The strike caused Boeing to delay the initial deliveries of its 747-8 jumbo jet and its 777 Freighter. The company also pushed back the schedule of its already delayed 787 Dreamliner.
Boeing executives such as Scott Carson, president of the Chicago-based firm's commercial airplanes division, also have suggested that Airbus was the winner of the Boeing Machinists strike. Carson suggested this week at a defense and aerospace conference that Boeing allowed the Machinists to walk off the job in order to preserve "management's right to run the factory as opposed to giving it up to the union."
Boeing's second largest union, its engineers and technical workers, will vote Dec. 1 whether to accept the company's four-year contract offer.
Airbus executive vice president for programs, Tom Williams, was quoted by the Wall Street Journal in August as saying delays from suppliers had cost the plane maker "a ton of money." Airbus and Boeing receive most of the payments for aircraft on delivery, so delays in delivery translate into a delay in revenue.
Airbus delivered 349 aircraft between January and September, up from 330 a year earlier. It took in a net 737 new aircraft orders so far this year, increasing its order backlog to 342 billion euros ($431 billion) based on list prices.
Airbus is a unit of European Aeronautic Defence & Space Co.
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