Boeing in Pacts to Produce 787

Boeing Co. said Thursday that it signed contracts with Japanese partners for its next-generation 787 Dreamliner program, clearing a hurdle toward the final manufacturing of the wide-bodied plane.

Japan Aircraft Development Corp., which represents Fuji Heavy Industries Ltd., Kawasaki Heavy Industries Ltd. and Mitsubishi Heavy Industries Ltd., signed the agreements defining their roles in the twin-aisle passenger jet, Boeing said. Specific terms were not disclosed.

Japanese manufacturers will build about one-third of the 787, which will have the highest foreign content of any commercial jet that Boeing has built.

Japan is expected to help its manufacturers finance their part of the plane. That has given ammunition to critics who say that Boeing indirectly benefits from some of the of subsidies it criticizes rival Airbus for receiving.

Mitsubishi will build the largest structural elements of the plane’s wings, which will be shipped to Boeing’s plant in Everett, Wash., for final assembly in specially modified 747 cargo freighters.

Fuji will design and make the plane’s center wing box and Kawasaki will build other parts of its wing, as well as parts of its fuselage and landing gear.

Separately, Boeing, the No. 2 commercial-jet maker, won an order for 60 aircraft valued at $3.9 billion from Indonesia’s PT Lion Mentari Airlines, extending its lead over rival Airbus for new business this year.

Lion Air, Indonesia’s biggest budget carrier, will buy the 737-800 and 737-900 models, with deliveries starting in May 2007.

Boeing is aiming to beat Airbus in orders this year after falling behind in the last four years. It had contracts for 218 new planes through May 17, while Airbus had orders for 145 through the end of April, the most recent data available. Airbus last year won about 80% of sales to low-cost carriers.

“Economic growth and airline deregulation in Asia translate directly to richer people and easy access to flying,” said Richard Aboulafia, an analyst at Fairfax, Va.-based consulting company Teal Group

The order boosts Boeing’s sales to 162 planes among the 18 Asian low-fare airlines currently flying or preparing to begin service. Airbus, based in Toulouse, France, has 178 planes in service and on order among the discount carriers.

Boeing shares Thursday rose $1.54 to $62.99.