The FINANCIAL — Boeing announced on October 12 a new services contract with United Airlines that is expected to reduce costs and increase efficiency for the airline by providing high-value, mission-critical rotable parts.
Boeing will support United Airlines’ entire fleet of 787 Dreamliners through its Component Services program under the 10-year agreement, enabling the airline to greatly reduce its inventory management costs while improving component availability. With the United agreement, Boeing has the largest 787 Component Services program in the industry, according to Boeing.
“Boeing won this award by sharing our commitment to reliability, and by understanding our desire for a long, safe and successful life for these state-of-the-art 787s,” said Linda Ryan, managing director of vendor management, United Airlines.
Through its Component Services program, Boeing establishes and maintains a pool of rotable parts—parts designed to be repeatedly and economically restored to a fully serviceable condition—selected to fit each customer’s fleet needs.
Customers work with Boeing for the quick replacement of program-covered parts, which are shipped within a timeframe determined by the airline, based on their criticality. Boeing handles the repair, upgrade or warranty service when the customer returns the unserviceable part.
“We are thrilled to add United Airlines to our list of valued customers who rely on Boeing services to ensure the best possible performance for their fleet,” said Rick Anderson, vice president of sales, Commercial Aviation Services, Boeing Commercial Airplanes. “We take great pride in our ability to provide airlines with an effective way to reduce the total cost of airplane ownership, and in turn, gain a competitive advantage in their markets, through our Component Services program.”
The agreement with United Airlines marks the third Component Services contract signed with a major commercial airline since June 1, 2015. Boeing announced new partnerships with Oman Air in July and British Airways in August. United Airlines has currently taken delivery of 22 787s.