Boeing asks suppliers to check for Middle East impact as war rages

<p>By Allison Lampert</p>
<p>March 16 (Reuters) - U.S. planemaker Boeing has asked suppliers to identify any impact to production caused by the U.S.-Israeli war on Iran, according to a message to suppliers seen by Reuters, as industry concerns rise that ‌a longer conflict could further constrain aircraft production.</p>
<p>Global planemakers are speaking with suppliers and customers as they assess the ‌impact of a war now in its third week, which has pushed oil prices to about $100 a barrel with no clear end in sight. The conflict has disrupted ​flights and shipping, with Reuters reporting delays in transporting aircraft parts to Middle East carriers.</p>
<p>In a recent online communication to suppliers, Boeing asked companies working on its commercial programs to identify by March 9 any work carried out in the Middle East, including by sub-tier suppliers, and any operational impacts.</p>
<p>"As we continue to monitor the situation in the Middle East, we are assessing potential impacts to the stability of our supply ‌chain," said the message.</p>
<p>Boeing declined to comment.</p>
<p>MIDDLE EAST ⁠NOT MAJOR PARTS HUB</p>
<p>While the Middle East region is not considered a major manufacturing hub of components for new planes, suppliers like Strata in the United Arab Emirates make parts for Boeing's 787 Dreamliner jet. ⁠Boeing, however, also sources parts like the vertical fin from other sites.</p>
<p>Strata was not immediately available for comment.</p>
<p>AIRBUS AND EMBRAER ALSO ON ALERT</p>
<p>A senior supply-chain source said the shipping and air disruption at one of the world’s critical transit points could have an impact on Boeing's European rival Airbus ​if ​the war dragged on beyond a few weeks.</p>
<p>A spokesperson for Airbus said the ​planemaker is in close dialogue with customers and suppliers ‌across the region.</p>
<p>Brazilian planemaker Embraer has also questioned suppliers about the impact of the conflict on output and transport costs, a source familiar with the matter said.</p>
<p>In response to questions from Reuters, Embraer referred to comments by CEO Francisco Gomes Neto, who told analysts on March 6 that the planemaker was "taking care of our suppliers, both direct and indirect in the region" and had not seen any "impact in deliveries or even short-term sales."</p>
<p>While the impact on aerospace has so far been limited, some analysts say a prolonged conflict that keeps ‌oil prices high could weigh on demand for new aircraft. Some Gulf carriers ​are among the largest buyers of wide-body jets from Boeing and Airbus.</p>
<p>"What I'm ​really more concerned about is long-term demand for jets in ​the region," said Richard Aboulafia, managing director at U.S. consulting firm AeroDynamic Advisory.</p>