Boeing strike's impact spreads to suppliers and airlines

Global - The ongoing strike organised by International Association of Machinists and Aerospace Workers (IAM) is taking a toll on Boeing's airline customers and suppliers globally.

Five of Boeing's factories have been idle for a month and repercussions are beginning to be felt. The strike is affecting assembly of Boeing's new 787 Dreamliner; currently a year behind schedule along with 737s, 777s, 767s, and 747s, said local sources.

Delta Air Lines (DAL) was expecting to receive four long-range Boeing 777s and 737-700s in the third quarter of the year, for a total of 10 new jets this year.

Betsy Talton, Delta spokeswoman said, "All I can tell you is we are expecting some delay in our deliveries."

Low-cost carrier Ryanair cancelled flights on 21 routes to and from Birmingham, England, scheduled for this month. While Virgin Blue is forced to push back its December launch of a new route between Sydney and Los Angeles, as Boeing is not able to deliver its Boeing 737s and 777-300s to both respective airlines, said media sources.

Local sources reported that Boeing suppliers are also taking a hit. Last week, Barnes Group, a Connecticut-based aerospace supplier, withdrew its 2008 financial forecast due of the strike.

Boeing said approximately 27,000 of IAM-represented employees in Washington, Oregon and Kansas have been on strike since 6 September, but a date for formal mediated talks has yet to be scheduled.

Doug Kight, Boeing vice president of human resources said, "We have kept lines of communications open and have agreed to pursue additional talks through the federal mediator."

Kight continued, "We are interested in exploring whether there is a path forward to resolve the strike. There are a number of issues to resolve, and any agreement must allow us to remain competitive and provide the flexibility to manage our business."

This is the third strike by Boeing's machinists in 13 years.

Some analysts fear that if no resolution is reached by the end of the year, the strike could cause serious disruptions in the airline industry.