Boeing delays Israeli defense contracts over Hamas conflict


COMPANIES


  • Benjamin Santamaria
  • Economist, analyst, lecturer and master of education. Economics editor at OKDIARIO and author of “The economy through time” at the Juan de Mariana Institute

He conflict between Israel and Hamas has had its effects on the aircraft manufacturer’s plans Boeing, as OKDIARIO has learned. Thus, the company has been forced to delay Defense contracts with the country it directs Benjamin Netanyahu already postponing announcements related to the Hebrew nation. Moreover, the company does not foresee resuming them immediately given the current state of the war situation.

In October last year, just before the start of the conflict by the Palestinian authorities, Boeing sent around 1,000 smart bombs to Israel. However, the escalation of the war has put a stop to relations between the company and the Hebrew country.

This has only been one more consequence. The war with Hamas has caused numerous economic disruptions, not only in aircraft and defensive materials manufacturers, but in all sectors, something that has especially affected Spain.

Thus, the assets that Spanish economy Sales in the nation led by Benjamin Netanyahu have decreased by 35.6% in February compared to the previous year, falling to 129.7 million, compared to 201.5 million in February 2023, as reported by the Spanish Exporters and Investors Club.

Boeing in Israel and the purchase of Spirit

Boeing is therefore waiting for the development of the conflict in the Middle East in order to continue with its forecasts in the region. According to company sources, the aircraft manufacturer was on the verge of announcing a milestone in the country, but this was thwarted by the outbreak of war. These events also hampered the normal development of contracts that the company was going to sign with the Israeli Defence Department.

For its part, as this newspaper has been able to find out, Boeing will announce two important news items in the coming weeks that will change the sector. On the one hand, the company is in the process of choosing a new director. new CEO. David L. Calhounthe current CEO, announced his retirement earlier this year. However, the identity of his successor – or “successor,” the sources add – will be revealed in the coming weeks.

Israel, Netanyahu, International Criminal Court
The Prime Minister of Israel, Benjamin Netanyahu. (Photo: Ep)

On the other hand, the manufacturer is in negotiations with Spirit AeroSystems, one of its main suppliers, to acquire the company. Boeing has had many problems arising from its relationship with this company, which has been blamed for part of the responsibility for the incidents that occurred with the famous 737 MAX models.

In this regard, sources reveal that in the coming weeks there will also be important updates on the acquisition process of this supplierThe multinational tried to solve the problems with this company by promoting a former Boeing executive within it, something that “did not work,” according to the same sources.

For this reason, the company has gone one step further and will try to control a good part of the production process, which has traditionally been decentralized. In this, Boeing diverges from the procedures it follows Airbushis eldest competitorwhich depends more on itself and controls much more the entire path that the pieces follow until forming an airplane.

“We have been working closely with Spirit AeroSystems and its management to strengthen the quality of the commercial aircraft we build together. We confirm that our collaboration “has led to preliminary discussions about bringing Spirit AeroSystems back into Boeing,” the company confirmed in a statement.

«We believe that the reintegration of the manufacturing operations of Boeing and Spirit AeroSystems would further strengthen aviation safety, improve quality and serve the interests of our customers, employees and shareholders», he assured.

“While we cannot guarantee that we will be able to reach an agreement, we are committed to finding ways to continue to improve safety and security.” aircraft quality on which millions of people depend every day,” the company stated.

The purchase negotiations are currently progressing satisfactorily. The conclusions could be published in the coming weeks. «The Board of directors “Spirit and the management team are committed to improving shareholder value,” said the current Boeing supplier. “No guarantees can be given that a definitive agreement will be concluded,” he warned.

 
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