Boeing, JAL Sign Aircraft Parts Management Deal

Chicago, March 15 (Jiji Press)–Boeing Co. and Japan Airlines said Wednesday that they have signed an aircraft parts management contract aimed at reducing JAL’s operating costs.

Under the contract, the U.S. aircraft maker will be responsible for procurement, inventory management and logistics for a majority of spare aircraft parts for JAL.

In 2001, Boeing and JAL agreed on the management of a limited scope of aircraft parts for JAL. The just-reached accord will expand the partnership significantly, the two firms said.

As part of the accord, Boeing and other suppliers will store aircraft parts at locations near the airline’ operations until they become necessary.

JAL will have only to pay for parts as it needs them and thus can greatly reduce its inventory costs and improve its return on assets.END