Japanese Disappointed by Lesser Role on Boeing Jet

Three Japanese companies that had sought an equity partnership with Boeing Co. to develop its 767-X commercial jet are disappointed with their relegation to subcontracting status, but still hope to be involved in the project.

Boeing, the world’s largest aircraft maker, said Friday that it had reached a subcontracting agreement with Mitsubishi Heavy Industries, Fuji Heavy Industries and Kawasaki Heavy Industries rather than giving them a stake in the project as had been widely expected. An equity stake would have given the three a key role ranging from development and design to marketing.

“In view of various considerations, it was decided that this would be best for both sides,” said a Mitsubishi Heavy official who requested anonymity. “But we are a bit disappointed.”

The proposed deal had come under political criticism in Washington due to fears that Japanese companies would gain access to technology they could use to whittle down the U.S. lead in aerospace.

Lawrence Clarksone, senior vice president of government and international affairs at Boeing, said in Seattle that his company wanted a minimum 25% equity partnership with the Japanese industrial giants but that they did not want to commit that much money to the project.

Industry analysts said fear of a political backlash was probably a more important factor than want of cash in keeping the Japanese companies out of equity participation.

“I can’t believe for one second that the problem on the Japanese side was a shortage of money,” said S. G. Warburg Securities analyst Bruce Roscoe. “It’s more the case that the project was politicized to the extent that Japanese participation had to be relegated to a subcontractor role.”