Boeing 777 Tail Frames Will Be Provided by Israel Aerospace
Israel Aerospace Industries was awarded the contract to manufacture Boeing 777X tail frames. They forecast that it will bring in over hundreds of millions of dollars in the coming years. IAI will be producing all horizontal and vertical tail frame parts.
Israel Aerospace Industries civilian business converts civilian airplanes and recrafts them into executive jets. Hopefully this agreement between Boeing and ISI will bring sustainability and exposure to IAI’s civilian business.
Currently, Israel Aerospace Industries civilian business outputs 777 planes each month, not including frames for the Boeing 787 Dreamliner. They will be continuing their duties of manufacturing frames for the Boeing 777 for the lifespan of the project.
This is a huge surprise, as IAI’s civilian side has losses calculating over $230 Million since 2009. In addition to the total losses, Israel Aerospace Industries management is working with it’s workers to reach an agreement involving voluntary retirement for over 1,000 workers. With this agreement, it should help with recovery of previous losses and hopefully bring them closer to profit.
Despite the losses and retirement negotiations, it seems like Israel Aerospace is moving in the right direction. Boeing is showing a lot confidence in IAI and recognizing them for their continuing efforts by awarding them this deal.