Boeing, Airbus look to land profits by making their own aircraft parts

The world's largest plane makers are testing a seemingly simple formula to smooth production, cut costs and fatten profits: Make more of the parts that go into their jets themselves. In the wake of United Technologies Corp.'s proposed US$23b deal to buy Rockwell Collins, that push is taking on more urgency. The deal is the latest in a round of consolidation among the world's biggest suppliers of aviation parts -- something Boeing and Airbus have eyed warily. Earlier this week, Boeing said it might cancel some of its parts contracts if the deal undermines competition further in the aerospace supply chain. Airbus had previously expressed its scepticism over it. Worried about getting squeezed by the consolidation, Boeing and Airbus have moved to protect themselves by building more of their parts in-house. <br/>
Wall Street Journal
https://www.wsj.com/articles/boeing-airbus-look-to-land-profits-by-making-their-own-aircraft-parts-1504782001
9/8/17