By Alwyn Scott
NEW YORK (Reuters) - Boeing Co
In response to questions from Reuters, Boeing said it will buy seats directly from the new supplier, LIFT by EnCore of Huntington Beach, California - a break from the past practice of allowing airlines to purchase seats that led to some costly delays in finishing aircraft because seats did not always arrive on time.
Boeing and LIFT planned to announce their agreement on Tuesday at the Aircraft Interiors Expo in Hamburg, Germany.
Boeing already has 11 approved economy seat suppliers, but LIFT will be the first and only supplier selling directly to Boeing. The others sell to the airlines, a process that has for decades allowed carriers to customize their respective cabins.
Also Read
As plane production soared in recent years, suppliers had increasing problems delivering seats on time. The delays fouled production at Boeing and Airbus.
Last year, both plane makers took the rare step of criticizing Zodiac after missed deadlines caused plane deliveries to be delayed.
France-based Zodiac has issued several profit warnings as it failed to keep up with delivery schedules.
Boeing's shift is most likely to affect Zodiac and B/E Aerospace, which together supply about two-thirds of the global seat market worth about $4.6 billion a year, according to consulting firm AlixPartners.
"It appears Boeing is warning the two main incumbents that it isn't satisfied with their current performance," said Phil Toy, a managing director at AlixPartners.
LIFT by EnCore is a new venture that has not yet delivered a seat. But founders Tom McFarland and Jim Downey are industry veterans who sold their previous seat and interior company, known as C&D Aerospace, to Zodiac in 2005.
(Reporting by Alwyn Scott, editing by G Crosse)
