Boeing and Safran have jointly announced from New York and Paris, respectively, their intention to collaborate in the design, build and construction of Auxiliary Power Units (APUs) for aircraft. The APU is a power system used predominantly by an aircraft when on the ground to power systems and start engines, though it can also be used by an aircraft when in flight.
Both companies, who are industry giants in their respective fields, will hold an equal 50 percent stake in the joint venture, which will be based in the United States. It is anticipated that the deal will be sealed by the end of the year, subject to customary conditions including regulatory and anti-trust clearance.
At the moment, Safran supplies an extensive range of components to Boeing commercial and defense programs, including as a partner to produce CFM’s LEAP-1B engine for the 737 MAX (through CFM International, a 50/50 joint venture between Safran Aircraft Engines and GE). Boeing and Safran also are partners in MATIS, a joint venture in Morocco producing wiring products for various airframe and engine companies.
According to Stan Deal, President and CEO, Boeing Global Services: “This strategic partnership will leverage Boeing’s deep customer and airplane knowledge along with Safran’s experience in designing and producing complex propulsion assemblies to deliver expanded, innovative services solutions to our customers.”
Commenting on the joint venture, Philippe Petitcolin, Chief Executive Officer, Safran said: “This will represent a new step in the long-lasting and fruitful partnership between Safran and Boeing. We are extremely proud of the continued confidence that Boeing has placed in our company. Safran has contributed to prestigious international military and civil programs, providing reliable, high-performance APU systems since 1962. Together we are committed to delivering advanced APUs and world-class support to our customers,” adding: “This partnership will have no impact on our 2018 guidance nor on our plan to return €2.3 billion (US$2.7 billion) cash to shareholders over 18 to 24 months.”
