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Boeing and Satair Sign Innovative Supply-Chain Solution Agreement

4-Apr-2006

Boeing [NYSE: BA] and Satair recently signed a long-term agreement as part of Boeing's Integrated Materials Management (IMM) initiative. Through this program, Boeing and selected suppliers such as Satair maintain an airline's inventory of maintenance supplies, including spare parts, and provide items only as needed.

By reducing the airline's own inventory, IMM reduces an airline's cost of doing business.

"Boeing is pleased to add Satair to the Integrated Materials Management (IMM) family of customers and network suppliers. Satair has extensive knowledge and experience in providing innovative service solutions to the airline industry. Our customers will benefit from this agreement as we continue to improve service and reduce maintenance costs through a more efficient and integrated supply chain," said Joe Brummitt, director of Integrated Materials Management.

Satair A/S, headquartered in Copenhagen, Denmark, is one of the world's largest aerospace parts distributors, with facilities in Europe, Asia and North America. Satair offers a variety of supply-chain services both to the commercial aftermarket, aircraft manufacturers and the broad community of systems manufacturers. The portfolio of products distributed and marketed by Satair includes a number of the most recognized aerospace companies, both from the United States and from Europe.

"Satair is very excited to come to this crossroad and sign with Boeing to become a partner in the IMM program," said John Staer, president and CEO of Satair. "The commercial aftermarket is making a shift to accelerated outsourcing of services, including many functions related to parts procurement and inventory management, in order to reduce cost. The IMM program will establish a more efficient and integrated supply chain and thereby an avenue to drive down cost for the airline community."

IMM builds on existing materials management programs that Boeing has with several airlines, including AirTran, All Nippon Airways, Delta, KLM, Japan Airlines, Japan Transocean Air and Singapore Airlines. This program is the next advance in expanding Boeing's supply-chain services and brings the total number of IMM suppliers to six, including Satair.

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