Boeing and Cathay Pacific sign contract for IMM Solution

Boeing and Cathay Pacific 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.

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, Cathay's manager-Inventory Operations. "In addition, we will only pay for a part when it is used, thereby significantly reducing our inventory holding costs."

IMM builds on existing materials management programs that Boeing has with several other airlines - AirTran Airways, ANA (All Nippon Airways), Nippon Cargo Airlines (NCA), Delta Air Lines, Japan Airlines, KLM Royal Dutch Airlines, Japan Transocean Air, Singapore Airlines, SIAEC and Thai Airways.

See other recent news regarding: Travel News Asia, Promotions, New Hotels, Boeing, Cathay Pacific, Maintenance