Boeing and Cathay Sign Contract for IMM Parts Solution

(Seattle, May 29, 2008) -- Boeing [NYSE: BA] and Cathay Pacific Airways have signed an agreement for an Integrated Materials Management (IMM) solution designed to reduce the airline's operating costs and allow Cathay Pacific to focus its resources on core business activities. Boeing will manage selected portions of the airline's expendable spare parts inventory, helping it achieve consistently high service levels for parts availability, increased support for its maintenance operation and improved cash flow.

"This program helps Cathay Pacific simplify its inventory administration and put even more focus on keeping airplanes in the air - the airline's core competency," said Mark Owen, vice president of Boeing Commercial Aviation Services Material Management.

Cathay Pacific Airways joins a growing number of airline customers that are integrating Boeing products and services to help reduce operating costs and achieve greater efficiencies in their maintenance operations. Through Integrated Materials Management, Boeing will be responsible for purchasing Cathay Pacific's expendable spare parts at competitive pricing through its buying power as an airframe manufacturer as well as handling the invoicing, inventory management and logistics for the spare parts.

"To ensure high service levels to meet our maintenance needs, the Boeing IMM program will own the expendable parts that are deployed at the Cathay's maintenance bases in Hong Kong and China," said Bob Taylor, manager-Inventory Operations. "In addition, we will only pay for a part when it is used, thereby significantly reducing our inventory holding costs."

Source : Boeing

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