Boeing Sharpens Threat to Suppliers With Safran Power-Unit Deal
- Venture will design, build compact engines in jetliner tails
- Muilenburg’s strategy pressures United Technologies, Honeywell
Photographer: Simon Dawson/Bloomberg
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Boeing Co. is deepening its intrusion on suppliers’ turf by teaming up with France’s Safran SA to design and build auxiliary power units, the compact turbines tucked below a jetliner’s tail that are used to start its main engines and provide power on the ground.
The 50-50 partnership will be based in the U.S., the companies said in a statement Monday. The deal is expected to close later this year, pending regulatory approval. Financial terms weren’t disclosed.