 | |
| |
Formerly
| Pacific Aero Products Co. (1916-1917) |
|---|---|
| Public | |
| Traded as | |
| Industry | |
| Founded | July 15, 1916 (as Pacific Aero Products Co.) Seattle, Washington, U.S. |
| Founder | William Boeing |
| Headquarters |
,
U.S.
|
Area served
| Worldwide |
Key people
| Dennis Muilenburg (Chairman, President & CEO) |
| Products |
|
Production output
|
|
| Services |
|
| Revenue |  US$101.127 billion (2018) |
| US$11.987 billion (2018) | |
| US$10.460 billion (2018) | |
| Total assets | US$117.359 billion (2018) |
| Total equity |  US$410 million (2018) |
Number of employees
| 153,027 (January 1, 2018) |
| Divisions |
|
| Subsidiaries |
|
| Website | www |
The Boeing Company (/ˈboʊ.ɪŋ/) is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aircraft manufacturers; it is the fifth-largest defense contractor in the world based on 2017 revenue, and is the largest exporter in the United States by dollar value. Boeing stock is included in the Dow Jones Industrial Average.
Boeing was founded by William Boeing on July 15, 1916, in Seattle, Washington. The present corporation is the result of merger of Boeing with McDonnell Douglas on August 1, 1997. Former Boeing's chair and CEO Philip M. Condit continued as the chair and CEO of the new Boeing, while Harry Stonecipher, former CEO of McDonnell Douglas, became the president and chief operating officer of the newly merged company.
The Boeing Company has its corporate headquarters in Chicago, Illinois. The company is led by President and CEO Dennis Muilenburg. Boeing is organized into five primary divisions: Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group. In 2017, Boeing recorded $93.3 billion in sales, ranked 24th on the Fortune magazine "Fortune 500" list (2018), ranked 64th on the "Fortune Global 500" list (2018), and ranked 25th on the "World's Most Admired Companies" list (2018).
History
Before 1930
William E. Boeing in 1929
In March 1910, William E. Boeing bought Heath's shipyard in Seattle on the Duwamish River, which later became his first airplane factory. Boeing was incorporated in Seattle by William Boeing, on July 15, 1916, as "Pacific Aero Products Co". Boeing was later incorporated in Delaware;
the original Certificate of Incorporation was filed with the Secretary
of State of Delaware on July 19, 1934. Boeing, who studied at Yale University,
worked initially in the timber industry, where he became wealthy and
learned about wooden structures. This knowledge proved invaluable in his
subsequent design and assembly of airplanes. The company stayed in Seattle to take advantage of the local supply of spruce wood.
Boeing's original logo
One of the two "B&W" seaplanes built with the assistance of George Conrad Westervelt, a U.S. Navy engineer, took its maiden flight on June 15, 1916. Boeing and Westervelt decided to build the B&W seaplane after having flown in a Curtiss aircraft. Boeing bought a Glenn Martin "Flying Birdcage" seaplane (so called because of all the guy-wires
holding it together) and was taught to fly by Glenn Martin himself.
Boeing soon crashed the Birdcage and when Martin informed Boeing that
replacement parts would not become available for months, Boeing realized
he could build his own plane in that amount of time. He and his friend
Cdr. G.C. Westervelt agreed to build a better airplane and soon produced
the B&W Seaplane.
This first Boeing airplane was assembled in a lakeside hangar located
on the northeast shore of Seattle's Lake Union. Many of Boeing's early
planes were seaplanes.
Replica of Boeing's first plane, the Boeing Model 1, at the Museum of Flight
On April 6, 1917, the U.S. declared war on Germany and entered World War I. On May 9, 1917, the company became the "Boeing Airplane Company". With the U.S. entering the war, Boeing knew that the U.S. Navy needed seaplanes for training. So Boeing shipped two new Model Cs to Pensacola, Florida, where the planes were flown for the Navy. The Navy liked the Model C and ordered 50 more. The company moved its operations to a larger former shipbuilding facility known as Boeing Plant 1, located on the lower Duwamish River, Washington state.
When World War I ended in 1918, a large surplus of cheap, used
military planes flooded the commercial airplane market, preventing
aircraft companies from selling any new airplanes, driving many out of
business. Others, including Boeing, started selling other products.
Boeing built dressers, counters, and furniture, along with flat-bottom
boats called Sea Sleds.
In 1919 the Boeing B-1 flying boat
made its first flight. It accommodated one pilot and two passengers and
some mail. Over the course of eight years, it made international airmail flights from Seattle to Victoria, British Columbia. On May 24, 1920, the Boeing Model 8 made its first flight. It was the first plane to fly over Mount Rainier.
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P-12 air superiority fighter
In 1923, Boeing entered competition against Curtiss to develop a pursuit fighter for the U.S. Army Air Service. Although Curtiss finished its design first and was awarded the contract, Boeing continued to develop its PW-9 fighter. That plane, along with the Boeing P-12/F4B fighter, made Boeing a leading manufacturer of fighters over the course of the next decade.
In 1925, Boeing built its Model 40
mail plane for the U.S. government to use on airmail routes. In 1927,
an improved version of this plane was built, the Model 40A which won the
U.S. Post Office's contract to deliver mail between San Francisco and Chicago. The 40A also had a passenger cabin that accommodated two.
That same year, Boeing created an airline named Boeing Air Transport, which merged a year later with Pacific Air Transport and the Boeing Airplane Company. The first airmail flight for the airline was on July 1, 1927. In 1929 the company merged with Pratt & Whitney, Hamilton Aero Manufacturing Company, and Chance Vought under the new title United Aircraft and Transport Corporation. The merge was followed by the acquisition of the Sikorsky Manufacturing Corporation, Stearman Aircraft Corporation, and Standard Metal Propeller Company. United Aircraft then purchased National Air Transport in 1930.
On July 27, 1928, the 12-passenger Boeing 80
biplane made its first flight. With three engines, it was Boeing's
first plane built with the sole intention of being a passenger
transport. An upgraded version, the 80A, carrying eighteen passengers,
made its first flight in September 1929.
1930s and 1940s
In
the early 1930s Boeing became a leader in all-metal aircraft
construction, and in the design revolution that established the path for
other transport aircraft through the 1930s. In 1930, the Monomail, a low-wing monoplane
that carried mail, was built. Built entirely out of metal, it was very
fast and aerodynamic, and had retractable landing gear. In fact, its
design was so revolutionary that the engines and propellers of the time
were not adequate to realize the potential of the plane. By the time controllable pitch propellers
were developed, Boeing was building its Model 247 airliner. Two
Monomails were built. The second one, the Model 221, had a 6-passenger
cabin. In 1931, the Monomail design became the foundation of the Boeing YB-9,
the first all-metal, cantilever-wing, monoplane bomber. Five examples
entered service between September 1932 and March 1933. The performance
of the twin-engine monoplane bomber led to reconsideration of air
defense requirements, although it was soon rendered obsolete by
rapidly-advancing bomber designs.
In 1932, Boeing introduced the Model 248, the first all-metal monoplane fighter. The P-26 Peashooter was in front-line service with the US Army Air Corps from 1934 to 1938.
In 1933, the Boeing 247
was introduced, which set the standard for all competitors in the
passenger transport market. The 247 was an all-metal low-wing monoplane
that was much faster, safer, and easier to fly than other passenger
aircraft. For example, it was the first twin engine passenger aircraft
that could fly on one engine. In an era of unreliable engines, this
vastly improved flight safety. Boeing built the first 59 aircraft
exclusively for its own United Airlines subsidiary's operations. This
badly hurt competing airlines, and was typical of the anti-competitive
corporate behavior that the U.S. government sought to prohibit at the
time. The direction established with the 247 was further developed by Douglas Aircraft, resulting in one of the most successful designs in aviation history.
The Air Mail Act
of 1934 prohibited airlines and manufacturers from being under the same
corporate umbrella, so the company split into three smaller companies –
Boeing Airplane Company, United Airlines, and United Aircraft Corporation, the precursor to United Technologies. Boeing retained the Stearman facilities in Wichita, Kansas. Following the breakup of United Aircraft, William Boeing sold off his shares and left Boeing. Clairmont "Claire" L. Egtvedt,
who had become Boeing's president in 1933, became the chairman as well.
He believed the company's future was in building bigger planes. Work began in 1936 on Boeing Plant 2 to accommodate the production of larger modern aircraft.
From 1934 to 1937, Boeing was developing an experimental long range bomber, the XB-15.
At its introduction in 1937 it was the largest heavier-than-air craft
built to date. Trials revealed that its speed was unsatisfactory, but
the design experience was used in the development of the Model 314 that
followed a year later.
Overlapping with the period of the YB-15 development, an agreement with Pan American World Airways (Pan Am) was reached, to develop and build a commercial flying boat able to carry passengers on transoceanic routes. The first flight of the Boeing 314 Clipper
was in June 1938. It was the largest civil aircraft of its time, with a
capacity of 90 passengers on day flights, and of 40 passengers on night
flights. One year later, the first regular passenger service from the
U.S. to the UK was inaugurated. Subsequently, other routes were opened,
so that soon Pan Am flew with the Boeing 314 to destinations all over
the world.
In 1938, Boeing completed work on its Model 307 Stratoliner.
This was the world's first pressurized-cabin transport aircraft, and it
was capable of cruising at an altitude of 20,000 feet (6,100 m) – above
most weather disturbances. It was based on the B-17, using the same
wings, tail and engines.
Boeing B-29 assembly line in Wichita, Kansas, 1944
During World War II, Boeing built a large number of B-17 and B-29 bombers. Boeing ranked twelfth among United States corporations in the value of wartime production contracts.
Many of the workers were women whose husbands had gone to war. In the
beginning of March 1944, production had been scaled up in such a manner
that over 350 planes were built each month. To prevent an attack from
the air, the manufacturing plants had been covered with greenery and
farmland items. During the war years the leading aircraft companies of
the U.S. cooperated. The Boeing-designed B-17 bomber was assembled also
by Lockheed Aircraft Corp. and Douglas Aircraft Co., while the B-29 was assembled also by Bell Aircraft Co. and by Glenn L. Martin Company. In 1942 Boeing started development of the C-97 Stratofreighter,
the first of a generation of heavy-lift military transports; it became
operational in 1947. The C-97 design would be successfully adapted for
use as an aerial refueling tanker, although its role as a transport was
soon limited by designs that had advantages in either versatility or
capacity.
After the war, most orders of bombers were canceled and 70,000 people lost their jobs at Boeing. The company aimed to recover quickly by selling its Stratocruiser (the Model 377), a luxurious four-engine commercial airliner derived from the C-97. However, sales of this model were not as expected and Boeing had to seek other opportunities to overcome the situation. In 1947 Boeing flew its first jet aircraft, the XB-47, from which the highly successful B-47 and B-52 bombers were derived.
1950s
The Boeing 707 in British Overseas Airways Corporation (BOAC) livery, 1964
B-52 bomber
Boeing developed military jets such as the B-47 Stratojet and B-52 Stratofortress bombers in the late-1940s and into the 1950s. During the early 1950s, Boeing used company funds to develop the 367–80 jet airliner demonstrator that led to the KC-135 Stratotanker and Boeing 707 jetliner. Some of these were built at Boeing's facilities in Wichita, Kansas, which existed from 1931 to 2014.
Between the last delivery of a 377 in 1950 and the first order
for the 707 in 1955, Boeing was shut out of the commercial aircraft
market.
In the mid-1950s technology had advanced significantly, which
gave Boeing the opportunity to develop and manufacture new products. One
of the first was the guided short-range missile used to intercept enemy aircraft. By that time the Cold War had become a fact of life, and Boeing used its short-range missile technology to develop and build an intercontinental missile.
In 1958, Boeing began delivery of its 707, the United States' first commercial jet airliner, in response to the British De Havilland Comet, French Sud Aviation Caravelle and Soviet Tupolev Tu-104,
which were the world's first generation of commercial jet aircraft.
With the 707, a four-engine, 156-passenger airliner, the U.S. became a
leader in commercial jet manufacturing. A few years later, Boeing added a
second version of this aircraft, the Boeing 720, which was slightly faster and had a shorter range.
Boeing was a major producer of small turbine engines during the
1950s and 1960s. The engines represented one of the company's major
efforts to expand its product base beyond military aircraft after World
War II. Development on the gas turbine engine started in 1943 and
Boeing's gas turbines were designated models 502 (T50), 520 (T60),
540, 551 and 553. Boeing built 2,461 engines before production ceased
in April 1968. Many applications of the Boeing gas turbine engines were
considered to be firsts, including the first turbine-powered helicopter
and boat.
1960s
A Boeing 737, the best-selling commercial jet aircraft in aviation history
Vertol Aircraft Corporation was acquired by Boeing in 1960, and was reorganized as Boeing's Vertol division. The twin-rotor CH-47 Chinook, produced by Vertol, took its first flight in 1961. This heavy-lift helicopter remains a work-horse vehicle to the present day. In 1964, Vertol also began production of the CH-46 Sea Knight.
In December 1960, Boeing announced the model 727
jetliner, which went into commercial service about three years later.
Different passenger, freight and convertible freighter variants were
developed for the 727. The 727 was the first commercial jetliner to
reach 1,000 sales.
On May 21, 1961, the company shortened its name to the current "Boeing Company".
Boeing won a contract in 1961 to manufacture the S-IC stage of the Saturn V rocket, manufactured at the Michoud Assembly Facility in New Orleans, Louisiana.
In 1966, Boeing president William M. Allen asked Malcolm T. Stamper to spearhead production of the new 747
airliner on which the company's future was riding. This was a
monumental engineering and management challenge, and included
construction of the world's biggest factory in which to build the 747 at
Everett, Washington, a plant which is the size of 40 football fields.
In 1967, Boeing introduced another short- and medium-range airliner, the twin-engine 737. It has since become the best-selling commercial jet aircraft in aviation history. Several versions have been developed, mainly to increase seating capacity and range. The 737 remains in production as of February 2018 with the latest 737 MAX series.
The roll-out ceremonies for the first 747-100
took place in 1968, at the massive new factory in Everett, about an
hour's drive from Boeing's Seattle home. The aircraft made its first
flight a year later. The first commercial flight occurred in 1970. The
747 has an intercontinental range and a larger seating capacity than Boeing's previous aircraft.
Boeing also developed hydrofoils in the 1960s. The screw-driven USS High Point (PCH-1) was an experimental submarine hunter. The patrol hydrofoil USS Tucumcari (PGH-2)
was more successful. Only one was built, but it saw service in Vietnam
and Europe before running aground in 1972. Its waterjet and fully
submersed flying foils were the example for the later Pegasus-class
patrol hydrofoils and the Model 929 Jetfoil
ferries in the 1980s. The Tucumcari and later boats were produced in
Renton. While the Navy hydrofoils were withdrawn from service in the
late 1980s, the Boeing Jetfoils are still in service in Asia.
1970s
In the early 1970s Boeing suffered from the simultaneous decline in Vietnam War military spending, the slowing of the space program as Project Apollo neared completion, the recession of 1969–70, and the company's $2 billion debt as it built the new 747 airliner.
Boeing did not receive any orders for more than a year. Its bet for the
future, the 747, was delayed in production by three months because of
problems with its Pratt & Whitney engines. Then in March 1971, Congress voted to discontinue funding for the development of the Boeing 2707 supersonic transport (SST), the US's answer to the British-French Concorde, forcing the end of the project.
Commercial Airplane Group,
by far the largest unit of Boeing, went from 83,700 employees in 1968
to 20,750 in 1971. Each unemployed Boeing employee cost at least one
other job in the Seattle area, and unemployment rose to 14 percent, the
highest in the United States. Housing vacancy rates rose to 16 percent from 1 percent in 1967. U-Haul dealerships ran out of trailers because so many people moved out. A billboard appeared near the airport:
Will the last person
leaving SEATTLE -
Turn out the lights.
In January 1970, the first 747, a four-engine long-range airliner, flew its first commercial flight with Pan American World Airways. The 747 changed the airline industry, providing much larger seating capacity
than any other airliner in production. The company has delivered over
1,500 Boeing 747s. The 747 has undergone continuous improvements to keep
it technologically up-to-date. Larger versions have also been developed
by stretching the upper deck. The newest version of the 747, the 747-8, remains in production as of 2018.
Boeing launched three Jetfoil 929-100 hydrofoils that were
acquired in 1975 for service in the Hawaiian Islands. When the service
ended in 1979 the three hydrofoils were acquired by Far East Hydrofoil
for service between Hong Kong and Macau.
During the 1970s, Boeing also developed the US Standard Light Rail Vehicle, which has been used in San Francisco, Boston, and Morgantown, West Virginia.
1980s
The narrow body Boeing 757 replaced the 727. This example is in Turkmenistan Airlines livery.
The Boeing 767 replaced the Boeing 707. This example is in Qantas livery.
In 1983, the economic situation began to improve. Boeing assembled
its 1,000th 737 passenger aircraft. During the following years,
commercial aircraft and their military versions became the basic
equipment of airlines and air forces. As passenger air traffic
increased, competition was harder, mainly from Airbus, a European newcomer in commercial airliner manufacturing. Boeing had to offer new aircraft, and developed the single-aisle 757, the larger, twin-aisle 767, and upgraded versions of the 737. An important project of these years was the Space Shuttle,
to which Boeing contributed with its experience in space rockets
acquired during the Apollo era. Boeing participated also with other
products in the space program, and was the first contractor for the International Space Station program.
During the decade several military projects went into production, including Boeing support of the B-2 stealth bomber.
As part of an industry team led by Northrop, Boeing built the B-2's
outer wing portion, aft center fuselage section, landing gear, fuel
system, and weapons delivery system. At its peak in 1991, the B-2 was
the largest military program at Boeing, employing about 10,000 people.
The same year, the US's National Aeronautic Association
awarded the B-2 design team the Collier Trophy for the greatest
achievement in aerospace in America. The first B-2 rolled out of the
bomber's final assembly facility in Palmdale, California, in November 1988 and it flew for the first time on July 17, 1989.
The Avenger air defense system and a new generation of
short-range missiles also went into production. During these years,
Boeing was very active in upgrading existing military equipment and
developing new ones. Boeing also contributed to wind power development with the experimental MOD-2 Wind Turbines for NASA and the United States Department of Energy, and the MOD-5B for Hawaii.
1990s
Air France 777-300ER
Boeing was one of seven competing companies that bid for the Advanced Tactical Fighter.
Boeing agreed to team with General Dynamics and Lockheed, so that all
three companies would participate in the development if one of the three
companies designs was selected. The Lockheed design was eventually
selected and developed into the F-22 Raptor.
In April 1994, Boeing introduced the most modern commercial jet aircraft at the time, the twin-engine 777, with a seating capacity
of approximately 300 to 370 passengers in a typical three-class layout,
in between the 767 and the 747. The longest range twin-engined aircraft
in the world, the 777 was the first Boeing airliner to feature a "fly-by-wire"
system and was conceived partly in response to the inroads being made
by the European Airbus into Boeing's traditional market. This aircraft
reached an important milestone by being the first airliner to be
designed entirely by using computer-aided design (CAD) techniques. The 777 was also the first airplane to be certified for 180 minute ETOPS at entry into service by the FAA. Also in the mid-1990s, the company developed the revamped version of the 737, known as the 737 "Next-Generation",
or 737NG. It has since become the fastest-selling version of the 737 in
history, and on April 20, 2006 sales passed those of the "Classic 737", with a follow-up order for 79 aircraft from Southwest Airlines.
In 1995, Boeing chose to demolish the headquarters complex on
East Marginal Way South instead of upgrading it to match new seismic
standards. The headquarters were moved to an adjacent building and the
facility was demolished in 1996. In 1997, Boeing was headquartered on East Marginal Way South, by King County Airport, in Seattle.
In 1996, Boeing acquired Rockwell's
aerospace and defense units. The Rockwell business units became a
subsidiary of Boeing, named Boeing North American, Inc. In August 1997,
Boeing merged with McDonnell Douglas in a US$13 billion stock swap, with Boeing as the surviving company. Following the merger, the McDonnell Douglas MD-95 was renamed the Boeing 717,
and the production of the MD-11 trijet was limited to the freighter
version. Boeing introduced a new corporate identity with completion of
the merger, incorporating the Boeing logo type and a stylized version of
the McDonnell Douglas symbol, which was derived from the Douglas Aircraft logo from the 1970s.
An aerospace analyst criticized the CEO and his deputy, Philip M. Condit and Harry Stonecipher,
for thinking of their personal benefit first, and causing the problems
to Boeing many years later. Instead of investing the huge cash reserve
to build new airplanes, they initiated a program to buy back Boeing
stock for more than US$10 billion.
In May 1999, Boeing studied buying Embraer to encourage commonality between the E-Jets and the Boeing 717, but this was nixed by then president Harry Stonecipher. He preferred buying Bombardier Aerospace, but its owner, the Beaudoin family, asked for a price too high for Boeing which remembered its mid-1980s purchase of de Havilland Canada, losing a million dollars every day for three years before selling it to Bombardier in 1992.
2000–2009
Boeing Everett Factory in 2011
In January 2000, Boeing chose to expand its presence in another
aerospace field of satellite communications by purchasing Hughes
Electronics. Hughes Space and Communications Company, which had pioneered the satellite communications field.
In September 2001, Boeing moved its corporate headquarters from Seattle to Chicago. Chicago, Dallas and Denver
– vying to become the new home of the world's largest aerospace concern
– all had offered packages of multimillion-dollar tax breaks. Its offices are located in the Fulton River District just outside the Chicago Loop.
On October 10, 2001, Boeing lost to its rival Lockheed Martin in the fierce competition for the multibillion-dollar Joint Strike Fighter contract. Boeing's entry, the X-32, was rejected in favor of Lockheed's X-35
entrant. Boeing continues to serve as the prime contractor on the
International Space Station and has built several of the major
components.
Boeing began development of the KC-767
aerial refueling tanker in the early 2000s. Italy and Japan ordered
four KC-767s each. After development delays and FAA certification,
Boeing delivered the tankers to Japan from 2008 with the second KC-767 following on March 5. to 2010. Italy received its four KC-767 during 2011.
In 2004, Boeing ended production of the 757 after 1,050 aircraft
were produced. More advanced, stretched versions of the 737 were
beginning to compete against the 757, and the planned 787-3 was to fill
much of the top end of the 757 market. Also that year, Boeing announced
that the 717, the last civil aircraft to be designed by McDonnell
Douglas, would cease production in 2006. The 767 was in danger of
cancellation as well, with the 787 replacing it, but orders for the
freighter version extended the program.
After several decades of success, Boeing lost ground to Airbus
and subsequently lost its lead in the airliner market in 2003. Multiple
Boeing projects were pursued and then canceled, notably the Sonic Cruiser, a proposed jetliner that would travel just under the speed of sound,
cutting intercontinental travel times by as much as 20 percent. It was
launched in 2001 along with a new advertising campaign to promote the
company's new motto, "Forever New Frontiers", and to rehabilitate its
image. However, the plane's fate was sealed by the changes in the
commercial aviation market following the September 11 attacks and the subsequent weak economy and increase in fuel prices.
Subsequently, Boeing streamlined its production and turned its attention to a new model, the Boeing 787 Dreamliner,
using much of the technology developed for the Sonic Cruiser, but in a
more conventional aircraft designed for maximum efficiency. The company
also launched new variants of its successful 737 and 777 models. The 787
proved to be a highly popular choice with airlines, and won a record
number of pre-launch orders. With delays to Airbus' A380 program several airlines threatened to switch their A380 orders to Boeing's new 747 version, the 747-8. Airbus's response to the 787, the A350,
received a lukewarm response at first when it was announced as an
improved version of the A330, and then gained significant orders when
Airbus promised an entirely new design. The 787 program encountered
delays, with the first flight not occurring until late 2009.
After regulatory approval, Boeing formed a joint venture, United Launch Alliance
with its competitor, Lockheed Martin, on December 1, 2006. The new
venture is the largest provider of rocket launch services to the U.S.
government.
In 2005, Gary Scott, ex-Boeing executive and then head of Bombardier's CSeries program, suggested a collaboration on the upcoming CSeries, but an internal study assessed Embraer as the best partner for regional jets. The Brazilian government wanted to retain control and blocked an acquisition.
On August 2, 2005, Boeing sold its Rocketdyne rocket engine division to Pratt & Whitney. On May 1, 2006, Boeing agreed to purchase Dallas, Texas-based Aviall, Inc.
for $1.7 billion and retain $350 million in debt. Aviall, Inc. and its
subsidiaries, Aviall Services, Inc. and ILS formed a wholly owned
subsidiary of Boeing Commercial Aviation Services (BCAS).
Realizing that increasing numbers of passengers have become reliant on their computers to stay in touch, Boeing introduced Connexion by Boeing,
a satellite based Internet connectivity service that promised air
travelers unprecedented access to the World Wide Web. The company
debuted the product to journalists in 2005, receiving generally
favorable reviews. However, facing competition from cheaper options,
such as cellular networks, it proved too difficult to sell to most
airlines. In August 2006, after a short and unsuccessful search for a
buyer for the business, Boeing chose to discontinue the service.
On August 18, 2007, NASA selected Boeing as the manufacturing contractor for the liquid-fueled upper stage of the Ares I rocket. The stage, based on both Apollo-Saturn and Space Shuttle technologies, was to be constructed at NASA's Michoud Assembly Facility near New Orleans; Boeing constructed the S-IC stage of the Saturn V rocket at this site in the 1960s.
The Boeing 787 Dreamliner on its first flight
Boeing launched the 777 Freighter in May 2005 with an order from Air France. The freighter variant is based on the −200LR. Other customers include FedEx and Emirates.
Boeing officially announced in November 2005 that it would produce a
larger variant of the 747, the 747-8, in two versions, commencing with
the Freighter version with firm orders for two cargo carriers. The
second version, named the Intercontinental, is for passenger airlines.
Both 747-8 versions feature a lengthened fuselage, new, advanced engines
and wings, and the incorporation of other technologies developed for
the 787.
Boeing also received the launch contract from the U.S. Navy for the P-8 Poseidon Multimission Maritime Aircraft, an anti-submarine warfare patrol aircraft. It has also received orders for the 737 AEW&C
"Wedgetail" aircraft. The company has also introduced new extended
range versions of the 737. These include the 737-700ER and 737-900ER.
The 737-900ER is the latest and will extend the range of the 737–900 to a
similar range as the successful 737–800 with the capability to fly more
passengers, due to the addition of two extra emergency exits.
The record-breaking 777-200LR Worldliner, presented at the Paris Air Show 2005.
The 777-200LR Worldliner embarked on a well-received global
demonstration tour in the second half of 2005, showing off its capacity
to fly farther than any other commercial aircraft. On November 10, 2005,
the 777-200LR set a world record for the longest non-stop flight. The
plane, which departed from Hong Kong traveling to London, took a longer
route, which included flying over the U.S. It flew 11,664 nautical miles
(21,601 km) during its 22-hour 42-minute flight. It was flown by Pakistan International Airlines pilots and PIA was the first airline to fly the 777-200LR Worldliner.
On August 11, 2006, Boeing agreed to form a joint-venture with the large Russian titanium producer, VSMPO-Avisma for the machining of titanium forgings. The forgings will be used on the 787 program.
In December 2007, Boeing and VSMPO-Avisma created a joint venture,
Ural Boeing Manufacturing, and signed a contract on titanium product
deliveries until 2015, with Boeing planning to invest $27 billion in
Russia over the next 30 years.
In February 2011, Boeing received a contract for 179 KC-46 U.S. Air Force tankers at a value of $35 billion. The KC-46 tankers are based on the KC-767.
Graphic representation of the XM1202 Mounted Combat System vehicle
Boeing, along with Science Applications International Corporation (SAIC), were the prime contractors in the U.S. military's Future Combat Systems program. The FCS program was canceled in June 2009 with all remaining systems swept into the BCT Modernization program.
Boeing works jointly with SAIC in the BCT Modernization program like
the FCS program but the U.S. Army will play a greater role in creating
baseline vehicles and will only contract others for accessories.
Defense Secretary Robert M. Gates'
shift in defense spending to, "make tough choices about specific
systems and defense priorities based solely on the national interest and
then stick to those decisions over time" hit Boeing especially hard, because of their heavy involvement with canceled Air Force projects.
Unethical conduct
In May 2003, the U.S. Air Force announced it would lease 100 KC-767 tankers to replace the oldest 136 KC-135s.
In November 2003, responding to critics who argued that the lease was
more expensive than an outright purchase, the DoD announced a revised
lease of 20 aircraft and purchase of 80. In December 2003, the Pentagon
announced the project was to be frozen while an investigation of
allegations of corruption by one of its former procurement staffers, Darleen Druyun
(who began employment at Boeing in January) was begun. The fallout of
this resulted in the resignation of Boeing CEO Philip M. Condit and the
termination of CFO Michael M. Sears. Harry Stonecipher,
former McDonnell Douglas CEO and Boeing COO, replaced Condit on an
interim basis. Druyun pleaded guilty to inflating the price of the
contract to favor her future employer and to passing information on the
competing Airbus A330 MRTT bid. In October 2004, she received a jail sentence for corruption.
In March 2005, the Boeing board forced President and CEO Harry
Stonecipher to resign. Boeing said an internal investigation revealed a
"consensual" relationship between Stonecipher and a female executive
that was "inconsistent with Boeing's Code of Conduct" and "would impair
his ability to lead the company". James A. Bell served as interim CEO (in addition to his normal duties as Boeing's CFO) until the appointment of Jim McNerney as the new Chairman, President, and CEO on June 30, 2005.
Industrial espionage
In June 2003, Lockheed Martin sued Boeing, alleging that the company had resorted to industrial espionage in 1998 to win the Evolved Expendable Launch Vehicle (EELV) competition. Lockheed Martin claimed that the former employee Kenneth Branch, who went to work for McDonnell Douglas
and Boeing, passed nearly 30,000 pages of proprietary documents to his
new employers. Lockheed Martin argued that these documents allowed
Boeing to win 19 of the 28 tendered military satellite launches.
In July 2003, Boeing was penalized, with the Pentagon stripping
seven launches away from the company and awarding them to Lockheed
Martin. Furthermore, the company was forbidden to bid for rocket contracts for a twenty-month period, which expired in March 2005.
In early September 2005, it was reported that Boeing was negotiating a
settlement with the U.S. Department of Justice in which it would pay up
to $500 million to cover this and the Darleen Druyun scandal.
1992 EU-US Agreement notes
Until the late 1970s, the U.S. had a near monopoly in the Large Civil Aircraft (LCA) sector.
The Airbus consortium (created in 1969) started competing effectively
in the 1980s. At that stage the U.S. became concerned about the European
competition and the alleged subsidies paid by the European governments
for the developments of the early models of the Airbus family. This
became a major issue of contention, as the European side was equally
concerned by subsidies accruing to U.S. LCA manufacturers through NASA
and Defense programs.
The EU and the U.S. started bilateral negotiations for the
limitation of government subsidies to the LCA sector in the late 1980s.
Negotiations were concluded in 1992 with the signing of the EC-US
Agreement on Trade in Large Civil Aircraft which imposes disciplines on
government support on both sides of the Atlantic which are significantly
stricter than the relevant World Trade Organization
(WTO) rules: Notably, the Agreement regulates in detail the forms and
limits of government support, prescribes transparency obligations and
commits the parties to avoiding trade disputes.
Subsidy disputes
In
2004, the EU and the U.S. agreed to discuss a possible revision of the
1992 EU-US Agreement provided that this would cover all forms of
subsidies including those used in the U.S., and in particular the
subsidies for the Boeing 787; the first new aircraft to be launched by
Boeing for 14 years. In October 2004 the U.S. began legal proceedings at
the WTO by requesting WTO consultations on European launch investment
to Airbus. The U.S. also unilaterally withdrew from the 1992 EU-US
Agreement.
The U.S. claimed Airbus had violated a 1992 bilateral accord when it
received what Boeing deemed "unfair" subsidies from several European
governments. Airbus responded by filing a separate complaint, contesting
that Boeing had also violated the accord when it received tax breaks
from the U.S. Government. Moreover, the EU also complained that the
investment subsidies from Japanese airlines violated the accord.
On January 11, 2005, Boeing and Airbus agreed that they would
attempt to find a solution to the dispute outside of the WTO. However,
in June 2005, Boeing and the United States government reopened the trade
dispute with the WTO, claiming that Airbus had received illegal
subsidies from European governments. Airbus has also responded to this
claim against Boeing, reopening the dispute and also accusing Boeing of
receiving subsidies from the U.S. Government.
On September 15, 2010, the WTO ruled that Boeing had received billions of dollars in government subsidies.
Boeing responded by stating that the ruling was a fraction of the size
of the ruling against Airbus and that it required few changes in its
operations. Boeing has received $8.7 billion in support from Washington state.
Future concepts
In May 2006, four concept designs being examined by Boeing were outlined in The Seattle Times
based on corporate internal documents. The research aims in two
directions: low-cost airplanes, and environmental-friendly planes.
Code-named after the well-known Muppets,
a design team known as the Green Team concentrated primarily on
reducing fuel usage. All four designs illustrated rear-engine layouts.
- "Fozzie" employs open rotors and offers a lower cruising speed.
- "Beaker" has very thin, long wings, with the ability to partially fold-up to facilitate easier taxiing.
- "Kermit Kruiser" has forward swept wings over which are positioned its engines, with the aim of lowering noise below due to the reflection of the exhaust signature upward.
- "Honeydew" with its delta wing design, resembles a marriage of the flying wing concept and the traditional tube fuselage.
As with most concepts, these designs are only in the exploratory
stage, intended to help Boeing evaluate the potentials of such radical
technologies.
Boeing recently patented its own force field technology, also
known as the shock wave attenuation system, that would protect vehicles
from shock waves generated by nearby explosions. Boeing has yet to confirm when they plan to build and test the technology.
The Boeing Yellowstone Project
is the company's project to replace its entire civil aircraft portfolio
with advanced technology aircraft. New technologies to be introduced
include composite aerostructures, more electrical systems (reduction of
hydraulic systems), and more fuel-efficient turbofan engines, such as
the Pratt & Whitney PW1000G Geared Turbofan, General Electric GEnx,
the CFM International LEAP56, and the Rolls-Royce Trent 1000. The term
"Yellowstone" refers to the technologies, while "Y1" through "Y3" refer
to the actual aircraft.
2010–2016
In summer 2010, Boeing acquired Fairfax, VA-based C4ISR and combat systems developer Argon ST to expand its C4ISR, cyber and intelligence capabilities.
In 2011, Boeing was hesitating between re-engineing the 737 or developing an all-new small airplane for which Embraer could have been involved, but when the A320neo was launched with new engines, that precipitated the 737 MAX decision.
On November 17, Boeing received its largest provisional order for $21.7 billion at list prices from Indonesian LCC Lion Air for 201 737 MAX, 29 737-900ERs and 150 purchase rights, days after its previous order record of $18 billion for 50 777-300ER from Emirates.
In 2012, Boeing announced it would close its pictured facility in Wichita, Kansas.
On January 5, 2012, Boeing announced it would close its facilities in Wichita, Kansas with 2,160 workers before 2014, more than 80 years after it was established, where it had employed as many as 40,000 people.
In May 2013, Boeing announced it would cut 1,500 IT jobs in Seattle over the next three years through layoffs, attrition and mostly relocation to St. Louis and North Charleston, South Carolina − 600 jobs each.
In September, Boeing announced their Long Beach facility manufacturing the C-17 Globemaster III military transport would shut down.
In January 2014, the company announced US$1.23 billion profits
for Q4 2013, a 26% increase, due to higher demand for commercial
aircraft. The last plane to undergo maintenance in Boeing Wichita's facility left in May 2014.
In September 2014, NASA awarded contracts to Boeing and SpaceX for transporting astronauts to the International Space Station.
In June 2015, Boeing announced that James McNerney would step down as CEO to be replaced by Boeing's COO, Dennis Muilenburg, on July 1, 2015. The 279th and last C-17 was delivered in summer before closing the site, affecting 2,200 jobs.
In February 2016, Boeing announced that Boeing President and CEO
Dennis Muilenburg was elected the 10th Chairman of the Board, succeeding
James McNerney. In March, Boeing announced to cut 4,000 jobs from its commercial airplane division by mid-year.
On May 13, 2016, Boeing opened a $1 billion, 27-acre (11-hectare)
factory in Washington state that will make carbon-composite wings for
its 777X to be delivered by 2020.
CSeries dumping petition
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The CSeries CS100 demonstrated for Delta Air Lines in Atlanta
On 28 April 2016, Bombardier Aerospace sold 75 CSeries CS100 firmly plus 50 options to Delta Air Lines.
On 27 April 2017, Boeing filed a petition for dumping them at $19.6m each, below their $33.2m production cost.
On 9 June 2017, the US International Trade Commission (USITC) found the US industry could be threatened.
On 26 September, the US Department of Commerce (DoC) observed subsidies of 220% and will collect deposits based on these.
It will add an 80% preliminary anti-dumping duty on top, resulting in a total duty of 300%.
The DoC announced its final ruling, a total duty of 292%, on 20 December.
On 10 January 2018, the Canadian government filed a complaint at the World Trade Organization against the US.
On 26 January 2018, the USITC four commissioners unanimously
determined the US industry is not threatened and no duty orders will be
issued, overturning the imposed duties.
The Commission public report was made available by February 2018.
On March 22, Boeing declined to appeal the ruling.
Since 2017
In October 2017, Boeing announced plans to acquire Aurora Flight Sciences
to expand its capabilities to develop autonomous, electric-powered and
long-flight-duration aircraft for its commercial and military
businesses, pending regulatory approval.
In 2017, Boeing won 912 net orders for $134.8 billion at list
prices including 745 737s, 94 787s and 60 777s, and delivered 763
airliners including 529 737s, 136 787s and 74 777s.
In January 2018, a joint venture was formed by auto seat maker Adient (50.01%) and Boeing (49.99%) to develop and manufacture airliner seats for new installations or retrofit, a $4.5 billion market in 2017 which will grow to $6 billion by 2026, to be based in Kaiserslautern near Frankfurt and distributed by Boeing subsidiary Aviall, with its customer service center in Seattle.
On June 4, 2018, Boeing and Safran announced a 50-50 partnership to design, build and service APUs after regulatory and antitrust clearance in the second half of 2018. This could threaten the dominance of Honeywell and United Technologies in the APU market.
At a June 2018 AIAA conference, Boeing unveiled a hypersonic transport project.
In September 2018, Boeing signed a deal with the Pentagon worth
up to $2.4 billion to provide helicopters for protecting nuclear-missile
bases. Boeing enhanced its space business by acquiring the satellite company Millennium Space System in September 2018.
On July 5, 2018, Boeing and Embraer announced a joint venture, covering Embraer's airliner business. This is seen as a reaction to Airbus acquiring a majority of the competing Bombardier CSeries on October 16, 2017.
Environment
Environmental record
In 2006, the UCLA Center for Environmental Risk Reduction released a study showing that Boeing's Santa Susana Field Laboratory, in the Simi Hills of eastern Ventura County in Southern California, had been contaminated with toxic and radioactive waste. The study found that air, soil, groundwater, and surface water at the site all contained radionuclides, toxic metals, and dioxins; air and water additionally contained perchlorate, TCE, and hydrazines, while water showed the presence of PCBs as well. Clean up studies and lawsuits are in progress.
Jet biofuels
The airline industry is responsible for about 11 percent of greenhouse gases emitted by the U.S. transportation sector.
Aviation's share of the greenhouse gas emissions is poised to grow, as
air travel increases and ground vehicles use more alternative fuels like
ethanol and biodiesel. Boeing estimates that biofuels could reduce flight-related greenhouse-gas emissions by 60 to 80 percent. The solution blends algae fuels with existing jet fuel.
Boeing executives said the company is informally collaborating with leading Brazilian biofuels maker Tecbio, Aquaflow Bionomic
of New Zealand and other fuel developers around the world. So far,
Boeing has tested six fuels from these companies, and will probably have
gone through 20 fuels "by the time we're done evaluating them". Boeing was also joining other aviation-related members in the Algal Biomass Organization (ABO) on June 2008.
Air New Zealand and Boeing are researching the jatropha plant to see if it is a sustainable alternative to conventional fuel. A two-hour test flight using a 50–50 mixture of the new biofuel with Jet A-1
in the number one position Rolls Royce RB-211 engine of 747-400 ZK-NBS,
was successfully completed on December 30, 2008. The engine was then
removed to be scrutinized and studied to identify any differences
between the Jatropha blend and regular Jet A1. No effects to
performances were found.
On August 31, 2010, Boeing worked with the U.S. Air Force to test the Boeing C-17
running on 50 percent JP-8, 25 percent Hydro-treated Renewable Jet fuel
and 25 percent of a Fischer–Tropsch fuel with successful results.
Electric propulsion
For NASA's N+3 future airliner program, Boeing has determined that hybrid electric engine technology
is by far the best choice for its subsonic design. Hybrid electric
propulsion has the potential to shorten takeoff distance and reduce
noise.
Political contributions, federal contracts, advocacy
In both 2008 and 2009, Boeing was second on the list of Top 100 US Federal Contractors, with contracts totaling $22 billion and $23 billion respectively.
Since 1995, the company has agreed to pay $1.6 billion to settle 39
instances of misconduct, including $615 million in 2006 in relation to
illegal hiring of government officials and improper use of proprietary
information.
Boeing secured the highest ever tax breaks at the state level in 2013.
Boeing's 2010 lobbying expenditure by the third quarter was $13.2 million (2009 total: $16.9 million). In the 2008 presidential election, Barack Obama
"was by far the biggest recipient of campaign contributions from Boeing
employees and executives, hauling in $197,000 – five times as much as John McCain, and more than the top eight Republicans combined".
Boeing has a corporate citizenship program centered on charitable contributions in five areas: education, health, human services, environment, the arts, culture, and civic engagement. In 2011, Boeing spent $147.3 million in these areas through charitable grants and business sponsorships. In February 2012, Boeing Global Corporate Citizenship partnered with the Insight Labs to develop a new model for foundations to more effectively lead the sector that they serve.
The company is a member of the U.S. Global Leadership Coalition,
a Washington D.C.-based coalition of over 400 major companies and NGOs
that advocates for a larger International Affairs Budget, which funds
American diplomatic and development efforts abroad. A series of U.S. diplomatic cables show how U.S. diplomats and senior politicians intervene on behalf of Boeing to help boost the company's sales.
In 2007 and 2008, the company benefited from over $10 billion of
long-term loan guarantees, helping finance the purchase of their
commercial aircraft in countries including Brazil, Canada, Ireland and
the United Arab Emirates, from the Export-Import Bank of the United States, some 65 percent of the total loan guarantees the bank made in the period.
In December 2011, the non-partisan organization Public Campaign criticized Boeing for spending $52.29 million on lobbying and not paying taxes
during 2008–2010, instead getting $178 million in tax rebates, despite
making a profit of $9.7 billion, laying off 14,862 workers since 2008,
and increasing executive pay by 31 percent to $41.9 million in 2010 for
its top five executives.
Divisions
Boeing plant in Ridley Park, Pennsylvania
The two largest divisions are Boeing Commercial Airplanes and Boeing Defense, Space & Security (BDS).
- Boeing Capital
- Boeing Commercial Airplanes (BCA)
- Boeing Defense, Space & Security (BDS)
- Engineering, Test & Technology
- Boeing Research & Technology
- Boeing Test & Evaluation
- Intellectual Property Management
- Information Technology
- Environment, Health, and Safety
- Boeing Shared Services Group
- Boeing Realty
- Boeing Travel Management Company
- Boeing Supplier Management
