Boeing and Safran have agreed to jointly design, build and service Auxiliary Power Units (APUs), creating better value for customers and for both companies.
An APU is an onboard engine that is used to primarily start the main engines and power aircraft systems on the ground and, if necessary, in flight.
The agreement will establish an important relationship between two of the world's leading aerospace companies to work together on products and expanded service capabilities to benefit both customers and the industry at large. Both companies will have a 50 percent stake in the partnership, which will be based in the United States. The completion of the transaction is subject to customary conditions including regulatory and antitrust clearance. The deal is expected to close in the second-half of 2018.
"This strategic partnership will leverage Boeing's deep customer and airplane knowledge along with Safran's experience in designing and producing complex propulsion assemblies to deliver expanded, innovative services solutions to our customers," said Stan Deal, President and CEO, Boeing Global Services.
Safran currently supplies a wide range of components to Boeing commercial and defense programs, including as a partner to produce CFM's LEAP-1B engine for the 737 MAX (through CFM International, a 50/50 JV between Safran Aircraft Engines and GE). Boeing and Safran also are partners in MATIS, a joint venture in Morocco producing wiring products for several airframe and engine companies.
"This will represent a new step in the long-lasting and fruitful partnership between Safran and Boeing. We are extremely proud of the continued confidence that Boeing has placed in our company. Safran has contributed to prestigious international military and civil programs, providing reliable, high-performance APU systems since 1962. Together we are committed to delivering advanced APUs and world-class support to our customers," said Philippe Petitcolin, Chief Executive Officer of Safran. "This partnership will have no impact on our 2018 guidance nor on our plan to return Euro 2.3 billion cash to shareholders over 18 to 24 months."
"This move will strengthen Boeing's vertical capabilities as we continue to expand our services portfolio and make strategic investments that accelerate our growth plans," said Greg Smith, Boeing Chief Financial Officer and Executive Vice President of Enterprise Performance & Strategy. "The establishment of the joint venture will have no impact on Boeing's 2018 guidance or on our commitment to returning approximately 100 percent of free cash flow to shareholders".
Tata Boeing Aerospace today delivered the first AH-64 Apache combat helicopter fuselage from its manufacturing facility in Hyderabad, India. The fuselage will now be transported to Boeings AH-64 Apache manufacturing facility in the USA, for integration into the final assembly line
French Safran and Russian United Engine Corporation (UEC) have signed an agreement for the development of the modification of SaM146 engine for the version of Russian multi-purpose amphibious aircraft, Beriev Be-200. ‘ODK-Saturn, a part of
Boeing is working on updating its Block II version of Super Hornet fighters to Block III and is preparing to roll off the production line next year. “The Navys carrier air wing doesnt need us to be at F-35 level of stealth to perform the missions the carrier air wing has to do
Safran Helicopter Engines has received EASA (European Aviation Safety Agency) engine type certification for its Ardiden 3C, the helicopter engine. Powering the Avicopter AC352, the engine has been jointly developed and built by Safran Helicopter Engines, Dongan and HAPRI, parts of the Aero Engine Corporation of China (AECC) consortium
Honeywell was awarded $64.8 million performance based logistics requirements contract for repair, replacement, and program support for auxiliary power units used on F/A-18 A/G models, P-3, and C-2 aircraft
Safran Helicopter Engines has made the first ground run of its Tech TP, a turboprop technological demonstrator aimed at 15% lower fuel consumption and CO2 emissions than current engines. It is based on an Ardiden 3 turboshaft and developed as part of the EU Horizon 2020 research and innovation programme
Zunum Aero has selected Safran Helicopter Engines for its hybrid-to-electric commercial aircraft, which will be available in the early 2020s. Safran Helicopter Engines will provide a new generation engine turbine to drive the Zunum ZA10s electrical generator
Boeing has won $1.5 billion contract for system configuration sets and associated services in support of the life cycle upgrades of F/A-18A/B, C/D, E/F and EA-18G aircraft for the Navy and foreign military sales (FMS) customers
Kittyhawk is partnering with Boeing subsidiary Jeppesen to expand unmanned operations by participating in the U.S
Boeing has been awarded a $7 million contract for the Air Launched Cruise Missile (ALCM) warhead arming devices remanufacture. This contract provides for the remanufacture of 94 ALCM warhead arming devices
Russian Military to receive 144 S-350 ‘Vityaz’ Air Defense Systems by 2027
Replace ‘Failed’ Russian S-300 in Syria with Chinese Air Defence System: Chinese...
Rheinmetall, Partners Launch Australian Program to Build Robotic Military Vehicle
Lockheed to Integrate Sniper Targeting Pods onto UAE Mirage Jets
Mobile Phone Led Israelis to Destory Pantsir-S Air Defence Battery in Syria
China’s Z-10 Attack Helicopter Upgraded with Powerful Engine
Japan's F-X Stealth Fighter to Rival US' F-22
Russia Developing New Attack Helicopter ‘Airborne Combat Vehicle’
Several joint production and direct procurement programs could be halted if the US and Europe carry through with their threat...
Sanctions-hit Iran has found ingenious ways to develop military hardware
Artificial Intelligence (AI) is rapidly permeating the defence industry to aid and improve human decision-making
Upgrade of Russias Sukhoi Su-30SM fighters to equip them with armaments, radar, sensors and engines from the more powerful Su-35...
US companies sanctioned by China for supplying weapons to Taiwan may be denied rare earth elements (REEs), which have critical...
While the US F-35 stealth aircraft has become one the fastest selling fighter jets in the world aircraft market, thanks...