* Boeing ( BA ) asks suppliers to assess Middle East impact on
production
* Airbus and Embraer ( EMBJ ) also monitoring supply-chain
disruptions
* Prolonged conflict may affect long-term aircraft
demand, analysts say
By Allison Lampert
March 16 (Reuters) - U.S. planemaker Boeing ( BA ) 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.
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.
In a recent online communication to suppliers, Boeing ( BA ) 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.
"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.
Boeing ( BA ) declined to comment.
MIDDLE EAST NOT MAJOR PARTS HUB
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 ( BA ) 787
Dreamliner jet. Boeing ( BA ), however, also sources parts like the
vertical fin from other sites.
Strata was not immediately available for comment.
AIRBUS AND EMBRAER ALSO ON ALERT
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 ( BA ) European rival Airbus if the
war dragged on beyond a few weeks.
A spokesperson for Airbus said the planemaker is in close
dialogue with customers and suppliers across the region.
Brazilian planemaker Embraer ( EMBJ ) has also questioned
suppliers about the impact of the conflict on output and
transport costs, a source familiar with the matter said.
In response to questions from Reuters, Embraer ( EMBJ ) 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."
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 ( BA ) and
Airbus.
"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.
The world's largest commercial planemakers, along with
business jet makers, are ramping up production as aircraft
supply continues to lag demand, swelling order backlogs. That is
adding strain to a supply chain already facing rising demand
from the defense sector.
A separate industry source said some planemakers are also
weighing the risk that the U.S. Trump administration could
invoke the Defense Production Act to compel suppliers to
accelerate output to support the conflict. If applied broadly,
such a move could weigh on commercial aerospace, since many
suppliers serve both defense and civilian programs.