Executive Briefings

Fake Paperwork, Poor Parts Challenge China's Aerospace Boom

Chinese suppliers to U.S. flight control systems maker Moog sold it poorly made parts, faked paperwork and outsourced work to a factory not approved by the company, according to an internal report by U.S. aviation regulators

In a 9-page report dated Nov. 4, 2016 obtained by Reuters through a freedom of information request, the Federal Aviation Authority (FAA) said 273 affected parts were installed in an unspecified number of Boeing 777 wing spoilers, which help slow a plane when coming in to land.

It did not identify the parts or say when they were installed. The FAA, Boeing and Moog said in the report and in emails to Reuters they posed no safety risk.

Moog supplies flight control systems for commercial and military planes — an industry where supply chain traceability and material quality are highly regulated and crucial for flight safety.

The episode does not raise immediate safety issues. However, it highlights the pressure on Chinese suppliers and regulators as the world's fastest growing aviation sector seeks to be less reliant on foreign manufacturers.

To be sure, it's not just a Chinese issue. Shares in Japan's Kobe Steel, a supplier of aluminum and copper products used in aircraft and cars, plunged this month after it found numerous cases of data falsification, sending customers scrambling to check product safety.

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In a 9-page report dated Nov. 4, 2016 obtained by Reuters through a freedom of information request, the Federal Aviation Authority (FAA) said 273 affected parts were installed in an unspecified number of Boeing 777 wing spoilers, which help slow a plane when coming in to land.

It did not identify the parts or say when they were installed. The FAA, Boeing and Moog said in the report and in emails to Reuters they posed no safety risk.

Moog supplies flight control systems for commercial and military planes — an industry where supply chain traceability and material quality are highly regulated and crucial for flight safety.

The episode does not raise immediate safety issues. However, it highlights the pressure on Chinese suppliers and regulators as the world's fastest growing aviation sector seeks to be less reliant on foreign manufacturers.

To be sure, it's not just a Chinese issue. Shares in Japan's Kobe Steel, a supplier of aluminum and copper products used in aircraft and cars, plunged this month after it found numerous cases of data falsification, sending customers scrambling to check product safety.

Read Full Article