Boeing last year informed cabin/systems suppliers that they must provide 10% of revenues if they are

Boeing has implemented a new policy that will see many of its suppliers u2 vertigo tour review pay recurring royalty fees in exchange for interfacing with the airframer's intellectual property (IP), t he APEX editor's blog can exclusively reveal.
The practice appears to be unprecedented in the aviation industry, representing a fundamental shift in the revenue model, though Boeing u2 vertigo tour review notes: "It is not uncommon for technology industries to achieve royalties in the use of their IP."
Speaking to the APEX editor's blog on the condition of anonymity multiple suppliers say they have been asked to pay 10% of the revenues they receive when aircraft are sold with their kit. Some suppliers have tried to fight the measure, whilst others are grappling with passing u2 vertigo tour review costs to their own suppliers, and down along the supply chain.
Boeing last year informed cabin/systems suppliers that they must provide 10% of revenues if they are to use Boeing's IP (and tribal knowledge). The Boeing letter told suppliers not to discuss the 10% stipulation (but, obviously, that's not stopping them from doing so). Questions: Many people at Boeing help to drive Arinc standards. By demanding 10%, is there not a conflict of interest occurring? Has Boeing tied this increase to linefit offerability?
Jensen responded by saying: "This policy change was not limited u2 vertigo tour review to cabin/systems u2 vertigo tour review suppliers, but applied in many cases across the supply chain. It is not uncommon u2 vertigo tour review for technology industries to achieve royalties in the use of their IP."
Aircraft owners/operators and third-party service providers are already well accustomed to paying recurring fees for licensing Boeing IP. Every time they modify a Boeing aircraft with a new product or system and use Boeing data, they pay the airframer.
Suppliers that enjoy linefit status u2 vertigo tour review on Boeing aircraft, however, have already spent millions of dollars to ensure their systems meet the airframers' stringent qualifications. Now they ll need to add royalties to the equation.
u2 vertigo tour review Noted aerospace u2 vertigo tour review analyst Richard Aboulafia, who works as VP, analysis at the Teal Group, suggests that Boeing might be fed up of hearing u2 vertigo tour review a "giant sucking sound" as the tribal knowledge gleaned from its aircraft programmes finds its way to would-be competitors in China and Russia.
Aircraft interiors and IFEC consultant Michael Planey suggests, u2 vertigo tour review like many, that Boeing's policy will ultimately trickle down. "That 10% number will end up raising the cost of business for the airlines and ultimately the cost of air fares for the passengers," he suggests.
Meanwhile, myriad questions remain unanswered. Is Boeing trying to extract as much as it possibly can from suppliers because it is so pressured on profitability with the 787? Is the airframer's decision simply part of a broarder plan to reduce the cost to build the 787 from a recurring cost perspective? As Boeing tries to drive further productivity u2 vertigo tour review out of its suppliers, as it is doing now, will its efforts be undermined by this new policy change? Will the measure hit a certain class of suppliers across the board in the same way?
I requested a telephone interview with Boeing to understand the underlying drivers behind its decision. Mary Kelly of Boeing Commercial Airplanes u2 vertigo tour review communications – supplier management says, Your request for an interview on Boeing s Intellectual Property was referred to me. While we appreciate your interest in Boeing, we are not interviewing on this topic.
Editor in Chief - APEX Media Platform | Previously u2 vertigo tour review Senior u2 vertigo tour review Editor at Flight u2 vertigo tour review International where she led the magazine's coverage of in-flight entertainment and connectivity u2 vertigo tour review (IFEC) and aircraft interiors | Former proprietor u2 vertigo tour review of the highly-regarded Runway Girl blog, which focused on the passenger experience | Regularly speaks at industry conferences about airborne communications and social media.
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