Brooke Sutherland, Columnist

Boeing Puts a $30 Billion Deal to the Test

Its latest end-run around suppliers casts an uncomfortable spotlight on United Technologies' takeover of Rockwell Collins.

Boeing tightens the screws.

Photographer: Luke MacGregor/Bloomberg

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Heads, Boeing Co. wins. Tails, aerospace suppliers lose.

The planemaker on Monday announced the latest step in its push to grab more of its suppliers' rich profit margins for itself. Boeing will partner with Safran SA to develop and service auxiliary power units, which are used to start the main engine and provide power to aircraft while on the ground.1 If you've ever boarded a plane only to wait out a delay at the gate with no air conditioning (as recently happened to me in Florida), you realize the value of a properly functioning APU.