Boeing

The Boeing Company [NYSE: BA] today welcomes Oman Air and Yemenia (Yemen Airways) as the latest airlines to sign up for the Next-Generation 737 Spares Exchange Program. The two airlines join other operators around the world enrolled in the program, which gives airlines fast access to critical spare parts without the high costs associated with keeping such parts in inventory.

Oman Air enrolled five airplanes in the program, and Yemenia enrolled three airplanes.

The program is offered through Boeing Commercial Aviation Services, and will enable Oman Air and Yemenia to maintain a minimal inventory of dispatch critical line replaceable units (LRUs).These are high-value items for which repair is time consuming and costly. Holding multiple spare LRUs in inventory is a substantial expense, typically millions of dollars per year.

Under the Spares Exchange Program, Boeing ships an exchange replacement within one day of receiving an order. The removed unit is sent to Boeing, which arranges for repair, overhaul or modification. Units are restored to airworthy condition, upgraded to reflect the latest design changes and returned to the exchange inventory pool. Customers sign up for a term of up to 10 years, paying a rate that covers about 300 LRUs. The rate is based on fleet size and flight hours.

"For Oman Air and Yemenia, this program is good business and an excellent fit," said Lou Mancini, vice president of Maintenance Services for Boeing Commercial Aviation Services. "The program will help these two airlines reduce their inventory and repair expenses, and will also stabilize long term maintenance budget planning. This is another example of how Boeing is helping customers succeed by helping them reduce costs and improve operating efficiencies."

The Spares Exchange Program was launched in December 1999. Boeing is currently involved in significant proposal activity for the program in other parts of the world.