Boeing’s new avionics group aims to cut costs, boost quality

Boeing Co. said on Monday it set up an avionics group to make aircraft controls and electronics that compete with its own suppliers such as Rockwell Collins Inc., United Technologies Corp. and Honeywell International Inc.

Boeing, which has thousands of its defense division employees in the St. Louis area, said the unit had already started work and aims to bring systems for military, civil and space vehicles into service after 2020, capturing more of an avionics market worth hundreds of millions of dollars a year.

The world’s largest plane maker said its systems would be lower-cost, higher-quality alternatives to existing products, and would deliver more services revenue to Boeing after a plane is sold.

The aim is to “further drive cost down and value up for our customers,” Boeing Chief Executive Officer Dennis Muilenburg said in an internal statement to employees that was seen by Reuters.

Boeing said it will focus on products for its own planes, but could sell to other plane makers eventually.

Read more: St. Louis Post-Dispatch


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