MIAMI — Boeing and Adient shared the creation of Adient Aerospace, a joint venture that will manufacture and sell a collection of seating products to airlines and aircraft leasing companies. The seats will be available for installation on new airplanes and as retrofit configurations for aircraft produced by Boeing and other commercial airplane manufacturers.
— Boeing Airplanes (@BoeingAirplanes) January 16, 2018
The new alliance between the world’s largest aerospace company, and the global leader in automotive seating, Boeing, and Adient respectively, denote the aviation industry’s need for higher quality, further capacity in the seating category, and solid on-time performance.
Likewise, Adient Aerospace will support engineering teams and innovative cultures of both corporations, as well as qualified expertise in managing complex, global supply chains.
“Seats have been a persistent challenge for our customers, the industry, and Boeing, and we are taking action to help address constraints in the market,” said Kevin Schemm, senior vice president of Supply Chain Management, Finance & Business Operations, and chief financial officer for Boeing Commercial Airplanes.” Adient Aerospace will leverage Boeing’s industry leadership and deep understanding of customer needs and technical requirements, to provide a superior seating product for airlines and passengers around the world.”
“This joint venture supports Boeing’s vertical integration strategy to develop in-house capabilities and depth in key areas to offer better products, grow services and generate higher lifecycle value,” he added.
Adient chairman and CEO Bruce McDonald, admitted, “Adient has a strong set of transferable competencies that will offer a unique opportunity to create value for our company and for Boeing, our shareholders, and the broader commercial aircraft market.”
“To enhance the customer experience for passengers, airlines and commercial airplane manufacturers, we will apply our unmatched expertise for comfort and craftsmanship along with our reputation for operational excellence,” he continued.
Adient Aerospace’s technology center and primary production plant will be based in Kaiserslautern, Germany, which is near to Frankfurt.
Furthermore, its initial customer service center will be located in Seattle, Washington. Adient Aerospace aftermarket spare parts distribution will be performed exclusively through Aviall, a wholly owned subsidiary of Boeing.
According to the joint venture’s administration, Adient is the main stakeholder (50.01% share) and expects its inclusion in consolidated financial statements.
Therefore, Boeing (as 49.99% partner) will take a proportionate share of the earnings and cash flow. However, both companies will have representation on Adient Aerospace’s board of directors.