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Boeing, China Aviation Supplies to jointly provide support to Chinese airlines

Credit: REUTERS/Lindsey Wasson

Boeing and China Aviation Supplies Co (CASC) said on Thursday they will tie up to provide enhanced operational support to Chinese airlines, which could involve cooperation in areas such as parts delivery or aircraft dismantling.

MOU comes as Boeing tries to improve standing in China

Details several areas of potential cooperation

Boeing trying to boost revenue from services

Adds details of agreement, Boeing services push

SHANGHAI, Nov 7 (Reuters) - Boeing BA.N and China Aviation Supplies Co (CASC) said on Thursday they will tie up to provide enhanced operational support to Chinese airlines, which could involve cooperation in areas such as parts delivery or aircraft dismantling.

The memorandum of understanding, signed on the sidelines of the China International Import Expo in Shanghai on Thursday, comes as Boeing tries to improve its standing in China amid a trade war with the United States that has led to a two-year hiatus on plane orders.

The agreement details several areas of potential cooperation, including a parts-pooling system that can more quickly deliver parts to Boeing airplanes in China from a CASC-owned facility.

The companies also agreed to explore creating a jointly managed support platform in North America to provide Chinese carriers operating overseas with faster access to services when needed.

Boeing has spent two years pushing into the higher-margin services business, including aircraft parts and maintenance and analytics, which the company aims to grow to $50 billion in revenue in a decade from its 2018 revenue of around $17 billion.

(Reporting by Stella Qiu and Brenda Goh in Shanghai; Editing by Jacqueline Wong)

((brenda.goh@thomsonreuters.com; +86 (0) 21 6104 1763; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))

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