Boeing Co cutting orders for pressurized doors was worth less than NT$100 million (US$3.24 million) and would have limited effect on profits, Aerospace Industrial Development Corp (AIDC, 漢翔航空) said yesterday.
The reduced orders to AIDC, which has been manufacturing pressurized doors for Boeing 737 jets since 2003, this month were not as big as the company was expecting, AIDC senior vice president Serena Huang (黃淑媛) told an investors’ conference in Taipei.
“We were worried that Boeing would cut orders of Leap engines, which power Boeing 737 MAX aircraft, but thankfully, the orders were unchanged,” Huang said.
AIDC has been manufacturing Leap engine cases for CFM International, co-owned by General Electric Co and Safran Aircraft Engines, since 2013.
The company said the engine orders offer higher profit margins than orders for other products.
It had received a letter from Boeing saying the orders for Leap engines would be unaffected by the Seattle-based company’s plan to cut production of 737 MAX aircraft, as there has been a shortage of the engines since 2017, AIDC chairman Hu Kai-hung (胡開宏) said.
Boeing on Friday last week announced that it would cut the production schedule of its 737 aircraft line following two crashes that have seen the 737 MAX grounded worldwide.
Boeing has continued to manufacture 737s since the March 10 Ethiopian Airlines crash that killed 157 people, the second deadly crash in five months after a Lion Air crash killed 189 people in October last year.
As AIDC’s revenue and net profit for last year hit records of NT$28.18 billion and NT$2.09 billion respectively, the company is not worried that Boeing’s lower orders for doors would affect its profits for this year, Hu said.
“Although Boeing’s production cuts are temporary, we have set up a task force to control risks and weather potential headwinds,” he said.
Last year, orders from Boeing and Boeing’s suppliers accounted for 3 percent of AIDC’s revenue, the company said.
AIDC is to finish building a prototype of an advanced trainer jet in September and deliver 66 military aircraft to the government from 2023 to 2028, it said.
The military aircraft sector accounted for 56 percent of its revenue last year, AIDC general manager Ma Wan-june (馬萬鈞) said.
Additional reporting by AFP
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
RSS