Boeing Eyes the Scrap Airline Industry as a Way to Boost Revenue
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- August 7, 2014
Boeing (BA) is taking a first look at second-hand parts. The world's largest airplane-maker may be getting ready to tap into the scrap airline industry as a way to increase revenue. Airplane makers have recently ditched older model aircrafts in favor of new more fuel-efficient ones, leaving many good parts behind. Boeing is already profiting from purchasing the old crafts and recycling its parts - everything from engines and landing gear to windshields. Now they're eyeing the possibility of bringing the dismantling part of the process in-house. That would give Boeing more discretion over how the planes' old parts get re-purposed. The downside? Aviall, the world's largest seller of retail parts is a Boeing subsidiary which dipping into the so-called junkyard, could undermine. Boeing is keeping its eye on the future, as an estimated 6,000 aircrafts are set to go out of service in the next ten years. TheStreet's Julie Cerullo reports from New York.
