Boeing, Japanese in Talks to Develop Jet

Boeing Co. said Tuesday that it is talking with a consortium of major Japanese manufacturers about the possibility of developing a new commercial airliner known as the 767X.

The aircraft, which would have 300 to 350 seats, would be Boeing’s second-largest plane. Its biggest, the 747-400, seats about 400 passengers.

Coming amid the trade tensions between the United States and Japan and the growing concerns about the erosion of America’s technological edge, the proposed deal might renew debate in Congress over U.S. compliance in transferring key technology to the nation’s chief economic competitor.

“I hate to raise the flag and sound a scare, but any time there is some sort of transfer, it would help Japan,” said Charles McKee, an aviation analyst at Avmark Asia Ltd.

He said Japan would likely seek high-tech transfers from Boeing in the area of avionics, or navigation and radio gear.

But Richard Schleh, a spokesman for Boeing, emphasized that the parties have been discussing the project for some time and have not reached even a preliminary agreement on how to proceed.

“There’s nothing definitive,” Schleh said, “It’s simply a matter of exploring possibilities.”

Schleh noted that the companies that Boeing is talking to--Mitsubishi Heavy Industries Ltd., Fuji Heavy Industries Ltd. and Kawasaki Heavy Industries Ltd.--are already working with Boeing on its 767 aircraft project. Schleh acknowledged, however, that the Japanese firms could have anywhere from simply a subcontracting role to possibly a partnership interest in the new venture. A partnership would be the closest tie yet between Boeing and Japanese manufacturers. However, it is not definite that any Japanese companies would contribute if Boeing decides to build the plane.

The new 767X, if built, would compete with McDonald Douglas’s MD11 plane and the Airbus A330 and A340 planes, which fill a niche in the “medium long-haul” market.

Boeing has about $3.1 billion in cash available. To begin a new airplane program about $2 billion is needed, industry analysts said.