Boeing drops GKN as supplier for 737, still expects delivery by 2017

(Reuters) - Boeing Co (BA.N) said it has dropped GKN PLC (GKN.L) as the supplier for its 737 MAX jetliner, while it reaffirmed its expectation for delivery of the jet to customers beginning in 2017.

Boeing spokesman Doug Alder, in a statement on Tuesday, said the company has made design changes to the 737 and is in negotiations with the new supplier. He provided no details on the design changes.

The Chicago-based aircraft maker reaffirmed its earlier expectation of rolling out the first 737 before the end of this year, flying it in early 2016 and delivering it to customers on time beginning in the third quarter of 2017.

The Wall Street Journal had first reported the supplier change, saying that Boeing cancelled its contract with GKN to supply engine thrust reversers, causing Boeing to alter the design for the 737 MAX.

GKN was not immediately available for comment.

(This version of the story corrects company name in headline to GKN from GNK)

(Reporting by Parikshit Mishra in Bengaluru; Editing by Leslie Adler)