UK defence group lands Boeing deal

British defence group Smiths today said it had won another lucrative deal to supply technology for Boeing’s new Dreamliner jet.

London-based Smiths said its Smiths Aerospace division had won contracts worth more than $1.6bn (€1.3bn) to provide landing gear actuation systems for the 7E7 aircraft.

In February Smiths said the Seattle-based aircraft giant had chosen it to provide its Common Core System (CCS) for the 7E7. This acts as the jet’s “central nervous system”.

Smiths said total revenues on the 7E7 contracts were expected to approach $3bn (€2.4bn) during the aircraft’s lifetime.

Smiths chief executive Keith Butler-Wheelhouse said: “This news reflects Smiths’ long-term commitment to investment in research and development and reconfirms our tier-one supplier status with Boeing.”

Boeing 7E7 senior vice-president Mike Bair said: “We’re making great progress in bringing our team together.”

The first system delivery from Smiths is scheduled for the fourth quarter of 2006 and the 7E7 is due to enter service in 2008.

The 7E7 is Boeing’s latest attempt to fight off the challenge from European rival Airbus in the intercontinental jetliner market.

Although smaller than Boeing’s existing 777 and 747 jet, the new aircraft will be able to carry 200 to 250 passengers on flights of up to 8,300 nautical miles.

Meanwhile Dorset-based aerospace and defence group Cobham said currency fluctuations would reduce its profitability by about 5% compared with the six months to the end of June last year.

It said Airbus and Boeing had indicated some improvement in the commercial aerospace market while US defence spending continued to be strong and its US businesses were performing well.