British Airlines Airbus A320
Nicolas Economou | NurPhoto | Getty Images
Boeing announced Monday that it has signed a "first agreement" to increase its business beyond aircraft manufacturing: the supply of aircraft parts from its main competitor, Airbus.
The Chicago-based manufacturer of the 737 has announced that it will supply parts for British Airways' Airbus A320s and narrow-body aircraft A320neo.
Two years ago, Boeing separated its aerospace business, whose chief executive officer, Dennis Muilenburg, said their business could grow to $ 50 billion a year. The unit generated more than $ 17 billion of Boeing's record $ 101 billion sales last year.
Boeing attempted to increase its control over the supply chain of aircraft parts, efforts that included joint ventures or direct acquisitions. The effort included agreements with companies that manufacture aircraft engines, seats and other components.
Under the agreement, Boeing will hold and manage parts for British Airways, which operates Boeing and Airbus aircraft, he said.
"We are proud to be able to meet the needs of British Airways regardless of the platform," said Ihssane Mounir, Senior Vice President of Sales and Marketing at Boeing.
Airbus may offer a similar arrangement to its airline customers that operate mixed fleets, such as British Airways, but does not yet have a customer for this service, Airbus spokesman James Darcy said.