Boeing buys out partner in South Carolina factory; second 787 flies

  • By Michelle Dunlop Herald Writer
  • Tuesday, December 22, 2009 10:31pm
  • Business

EVERETT — On a day when the Boeing Co. flew its second test flight for its 787, it also strengthened its hold over the new jet’s operations in South Carolina, buying out its partner’s share in a subassembly factory on Tuesday.

The second test flight came one week after the 787’s maiden flight.

The Dreamliner took off from Everett’s Paine Field at 9:09 a.m. and landed at Seattle’s Boeing Field at 11:10 a.m.

During the flight, Boeing said it gathered conflicting data from the landing gear indicator. However, the 787 pilots and ground-based flight test engineers resolved the issue, said Scott Lefeber, a spokesman for the 787 program. Although the flight lasted just two hours, Lefeber said that Boeing completed all the testing it had planned.

In Tuesday’s business move, Boeing brought complete ownership of 787 production in Charleston, S.C., into its hands. That’s contrary to the original plan. The company initially had placed responsibility for design and production of major 787 structures with its global partners. But supplier troubles and more than two-years of delays have forced Boeing to step in.

“Through this acquisition, Boeing benefits by joining together two solid operations — including their talented employees and state-of-the-art facilities — into one Boeing team,” said Jim Albaugh, Boeing’s president of commercial airplanes, in a statement. “Ultimately, we believe integration of the site will increase productivity for the 787 program and allow us to maintain our long-term competitiveness.”

Boeing acquired Alenia Aeronautica’s half of S.C.-based Global Aeronautica, a joint venture that had been operated with Boeing. Alenia will continue to produce 787 sections in Italy. But Boeing has become the sole owner of Global Aeronautica, where the 787’s mid-fuselage sections are joined and systems installed.

The Global Aeronautica site started as a shared operation between Alenia and Vought Aircraft Industries. Boeing bought out Vought’s interest in Global Aeronautica in 2008. Earlier this year, Boeing also acquired Vought’s rear-fuselage production plant in Charleston. Boeing plans to expand its Charleston presence further by adding a second 787 final assembly line there.

The company’s growing footprint in South Carolina hasn’t won Boeing favor with its unions in the Puget Sound region. Leaders for the company’s Machinists’ and engineering unions said Boeing’s purchase of Global Aeronautica only shows the company’s global outsourcing strategy failed.

“Boeing thought the global supply chain would help spread cost and risk, but instead it made them more vulnerable,” said Ray Goforth, executive director of the Society of Professional Engineering Employees in Aerospace.

Boeing did not disclose the terms of its agreement with Alenia.

In Tuesday’s test flight, the second 787 was painted with the livery of Japan’s All Nippon Airways, launch customer for the Dreamliner. However, the second aircraft will not be the 787 that will be delivered to ANA.

“We are honored by the airline’s support and look forward to delivering ANA the first production airplane next year,” Scott Fancher, 787 program general manager, said in a statement.

Boeing’s first three 787s have been modified too much to be of commercial value to airlines. The jet maker took a $2.5 billion charge on those 787s earlier this year.

In total, Boeing will use six 787s in its flight test program, putting each through a variety of tests designed to prove to federal aviation authorities that the Dreamliner is fit to fly. Four of the 787s, including the two jets that have flown, are powered with Rolls-Royce Trent 1000 engines.

The final two Dreamliner aircraft will operate with General Electric GEnX engines.

Boeing’s shares increased 1.5 percent Tuesday to close at $55.10.

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