Boeing looks to secure new local contracts

Boeing, the US Model Aircraft and defence equipment manufacturer, already has longstanding relationships with South African suppliers including Denel and Aerosud and hopes to extend them if new purchases are made by the South African Defence Force and local airlines, Paul Oliver, its vice-president in the Middle East and Africa responsible for business development and integrated defence systems, said Wednesday.

He was speaking at the Boeing models stand at the African Aviation and Defence Show in Cape Town, where manufacturers from all over the world including China, India, European countries and the Americas are showing their wares this week.

Praising the quality of work done by South African companies, Oliver said Boeing first dealt with Denel and Aerosud when it was obliged to give them orders to offset deals with South African Airways. The quality of the work was so high, and delivery completed so early, that Boeing had continued to give them work when its obligations under the industrial offset rules had been met, because his company preferred to have long-term relationships with reliable suppliers.

These were still continuing , enabling both companies to earn millions of US dollars making parts for orders for customers worldwide. The amount of their earnings in the coming year would depend on demand and the outlook seemed promising at present with the international airline industry reviving from the effects of recession.

Joao Miguel Santos, Boeing's director, international sales, for commercial  Model Aircraft, said it was speaking to all South African airlines including low cost airlines 1Time, Comair - which had new generation Boeing 737 models on order - SAA and its low cost division, Mango.

He said 1Time had a large fleet of McDonnell Douglas aircraft, which were part of Boeing, that would need replacing with new generation planes which used less fuel making them more economical to operate. Boeing's new "Dreamliner" used 70 percent less fuel, but it was a long range aircraft and airlines operating only on regional routes were more likely to order the new generation Boeing 737s.

Oliver and Michael Marshall, Boeing's director responsible for airlift and tankers, said that, since South Africa had cancelled an earlier order for an Airbus military transport plane intended to meet its peace-keeping requirements and rescue work, because of a delay in the delivery date and higher cost, Boeing had alternative products to offer including its C17 heavy lift Model Aircraft . This, he said, was more suitable for South Africa's changing requirements.

Discussing SAA, which will take delivery of the first of a new fleet of leased A330s early in the new year, Santos said that our national carrier would have to replace its current long haul fleet with new generation aircraft in the interests of fuel economy.

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