Boeing Looks at Sum of the Parts

Boeing is considering plans to build sections of its new 7E7 Dreamliner aircraft outside North America to improve its competitive edge against Airbus in Europe.

The firm uses suppliers such as BAE Systems in Britain and firms in Japan for some components but the vast bulk of manufacturing is undertaken in the US.

The idea is that completed sections would be brought to the plant in Seattle for final assembly, making a "dramatic impact" on total construction time, the company argued.

Mike Bair, head of the 7E7 project at Boeing, ruled out wings or other sections being built in Britain, indicating that partners in Italy or Japan were more likely to benefit.

Engines for the 7E7 could be constructed in Britain by Rolls-Royce, one of three manufacturers which have signed memorandums of understanding with Boeing.

The US company said it hoped to be in a position by Christmas to decide whether it would choose one or possibly two engine suppliers for the Dreamliner. GE and Pratt & Witney are vying with Derby-based Rolls-Royce for the contract.

The aircraft manufacturer is banking on the Dreamliner to restore its long-term fortunes in commercial aerospace, where it has been losing ground to Airbus.

Yesterday Boeing gave further details of the aircraft, explaining that the basic model - scheduled to enter service by 2008 - would hold 200 passengers and have a range of 6,600 nautical miles.

A 250-passenger stretched version would be ready in 2010 and have a range of 8,000 miles.

Mr Bair said that the new aircraft would offer 50% more cargo space than some of its Airbus rivals.

Boeing has already dumped other projects such as the Sonic Cruiser and took a $1.1bn (£690m) hit on its satellite business, which led to it posting an overall operating loss of $293m for the second quarter.