Boeing Co. said yesterday it agreed to buy aerospace parts supplier Aviall Inc. for $1.7 billion, as the planemaker looks to expand its aviation services operations as thousands of new airplanes are set to take to the air over the next few years.

The deal marks the first major corporate move by Boeing's new chief executive officer James McNerney, who took the helm 10 months ago, and puts more emphasis on maintenance in the wake of the boom in new plane orders.

Boeing said it would pay $48 per share in cash for Aviall, a 27 per cent premium to Aviall's closing price of $37.70 on Friday on the New York Stock Exchange. Boeing said it would also take on about $350 million of Aviall debt.

Dallas-based Aviall, with annual revenue of about $1.3 billion, is the world's leading independent distributor of new aviation parts to the aerospace, defense and marine industries worldwide. "It demonstrates our commitment to create a Boeing that is more than just the sum of its parts," said Mr McNerney, in a statement.

Boeing is expanding its aviation services operations as it hits a peak in commercial plane orders, fueled by a resurgence in travel worldwide.

Boeing took a record 1,002 commercial plane orders in 2005, but has signaled that this year's orders will fall short of that mark, suggesting that over the next few years supplying parts and maintaining existing planes will become more of an important part of the company's operations. Boeing's European rival Airbus took 1,055 commercial plane orders last year.

Aviall will become part of Boeing's Commercial Aviation Services unit, which maintains airlines' inventory of maintenance supplies - including spare parts - providing items only as needed, with the aim of cutting cost for airlines.

Aviall's parts ordering and supply chain management will also be used by Boeing's defence unit, the company said.