Airbus and Boeing push suppliers to merge Airbus and Boeing are pushing their large suppliers to buy smaller ones because of fears that weaknesses in the supply chain could undermine the aircraft makers" ambitious plans to increase production of passenger jets. The two dominant passenger-jet makers, which are set to increase their combined production by 40 per cent because they each have an order backlog of more than 4,000 passenger jets, are worried that this initiative could be jeopardised by weak suppliers. Last year Airbus and Boeing manufactured 1,011 aircraft between them. The companies are willing in extremis to consider buying suppliers, or provide them with financing, but their strong preference is for the supply chain to consolidate, and the issue will be in focus at the Farnborough air show starting on Monday. An attempt to increase production in 1997 ran into severe difficulties, with Boeing plunging to a net loss and its factories and supply chain struggling to cope. This time around, Airbus and Boeing want to see consolidation between aerostructures suppliers, which make parts of fuselages and wings. Aerostructures companies can have markedly lower profitability compared with suppliers of equipment such as engines, because these latter groups, which include Rolls-Royce, boost their earnings by also servicing their products. Fabrice Brégier, Airbus's new chief executive, told the Financial Times: "Probably there is a need for further consolidation [between aerostructures companies]. We support some consolidations ... to try to have a leader emerge. Tom Williams, Airbus's head of aircraft programmes, said that the European company was encouraging suppliers to "bulk up" through acquisitions or partnerships, "so that they get big enough and have a strong enough balance sheet." Airbus is increasing production of its narrow-body aircraft from 40 each month to 42 in the fourth quarter of this year, but has put on hold a tentative plan to rise to 44 because of concern that the supply chain may not be able to cope. Boeing and Airbus each have about 1,500 suppliers ranging from so-called tier one companies providing aerostructures or equipment for jets to smaller tier two and three groups making components. The second and third-tier suppliers are the obvious candidates for consolidation. Senior, the UK aerospace company that makes aerostructures and engine parts, last year paid $24.5m for Damar Machine Company, a US manufacturer of wing skins, after Boeing encouraged the transaction. Jim Albaugh, until last month head of Boeing's commercial aircraft division, said that the company wanted to have a "healthy supply chain." "If that means getting some of our first, second and third tier suppliers to be a little more integrated, I'm all for it," he said.