Boeing Production Halts After Dispute With Supplier Vaero
Boeing suffered millions in daily losses and halted 777 freighter production following a legal dispute with sole supplier Vaero over critical wing components.
Boeing halted production of its 777 freighter for nearly two months after a legal dispute with Vaero, a Florida-based supplier. The disruption also impacted the output of 767 freighters and KC-46 aerial refueling tankers.
Boeing filed a complaint in August alleging that Vaero, the sole provider of an indispensable trailing-edge rib kit for wings, stopped deliveries. The shortage stalled operations at Boeing's wing-production facility in Everett, Washington, resulting in losses as high as $6.5 million per day.
Although the companies reached a settlement in late September, 777 freighter production has not resumed. Boeing has removed two partially assembled aircraft from its final assembly line, including one destined for FedEx. To mitigate future supply chain fragility, Boeing is now working to bring the production of the rib kit in-house.
