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Boeing Moves Into Jet Controls, Setting Up Supplier Showdown

  • New unit would potentially compete with Rockwell, Honeywell
  • CEO says greater ‘vertical capability’ will enhance offerings
Pilots sit in the cockpit of a Boeing 747-8 passenger aircraft.
Photographer: Martin Leissl/Bloomberg
Updated on

Boeing Co. is creating a new unit that develops avionics for its commercial and military aircraft, a move that potentially pits the planemaker against suppliers such as Rockwell Collins Inc. and Honeywell International Inc.

Rockwell Collins posted the biggest decline in almost six years on the news that its second-largest customer is planning a rival product lineup. Boeing Avionics will focus on navigation, flight controls, information systems and other technology with a goal of bringing goods to market next decade, the Chicago-based company told employees Monday.