|The Boeing Company
|founding||July 15, 1916 as Pacific Aero Products Company|
|Seat||Chicago , United States|
|Number of employees||160,000 (end of 2019)|
|sales volume||58.2 billion US dollars (2020)|
|Branch||Aerospace engineering , defense industry|
The American company The Boeing Company was the second largest manufacturer of aerospace technology in 2020 (after Lockheed Martin , in terms of sales). The company's products include civil and military aircraft , helicopters , spaceships and satellites, as well as launch vehicles and missile weapons . Together with the European competitor Airbus , the group forms the duopoly for wide-body aircraft .
The engineer William Edward Boeing , son of the German emigrant Wilhelm Böing, studied at Yale University and then initially worked in the wood processing industry, where he acquired knowledge of wooden structures that would be useful for his later work in aircraft construction . In 1915, he and his colleague George Conrad Westervelt began work in Seattle ( Washington State ) on their first aircraft, the B&W Seaplane , a seaplane made of wood, canvas and wire. When Westervelt stopped working on the project, Boeing completed the first two B&Ws without his help. William Boeing himself carried out the maiden flight with the first aircraft called Bluebill on June 15, 1916. The company was founded on July 15, 1916 as the Pacific Aero Products Company . In 1917 the company was renamed the Boeing Airplane Company .
In 1926, the company founded the subsidiary Boeing Air Transport , which won the United States Postal Service's tender for postal flights between Chicago and San Francisco . Flight operations began on July 1, 1927 with Boeing Model 40 aircraft on this route. The mail flights turned out to be very lucrative, which allowed Boeing Air Transport to expand rapidly and buy out smaller mail carriers such as Varney Air Lines . In 1929, the Boeing Company took over the Stearman Aircraft Corporation in Wichita, Kansas and continued operations as a subsidiary. At the end of the 1920s, the Boeing Company , the airline Boeing Air Transport and the engine manufacturer Pratt & Whitney merged to form the United Aircraft and Transport Company , which won further tenders for mail flights in 1930.
When it became known in 1934 through the Air Mail Scandal that irregularities were involved in these tenders, the US government terminated the contracts and forbade the manufacturers from participating in the airlines operating in the postal air traffic. The United Aircraft and Transport Company had to be forcibly split up. William Boeing sued the government decision and lost. He then resigned from his company. The airline United Air Lines emerged from the separation of the group of companies .
During the Second World War , the aircraft manufacturer soon developed into one of the largest producers of bombers with the B-17 manufactured in Boeing Plant 2 . With the beginning of the Cold War , Boeing was able to further consolidate its leading position in this sector with the B-47 and B-52 . Because the range of these bombers was insufficient for an attack on the Soviet Union, Boeing also developed the jet-powered tanker KC-135 for the United States Air Force , which Boeing developed into the 707 and thus initiated Boeing's rise to become the largest manufacturer of civil aircraft. While Boeing became more and more successful with civil aircraft, its success with tenders for new bomber projects declined. In the 1950s, Boeing broke new technical ground with the development of the Minuteman ballistic ICBM. Building on this, the group was able to gain a foothold in space travel: Boeing produced, among other things, the first stage of the Saturn V moon rocket . In 1997 Boeing took over aircraft manufacturer McDonnell Douglas , which had sunk to number three in civil aviation (behind Airbus ), and the aerospace units of Rockwell International (Boeing North American).
In March 2001, Boeing announced that it would move its headquarters from Seattle to another location. The talks included Chicago , Denver and Dallas , but ultimately Chicago was chosen. The production of aircraft remained unaffected.
Boeing was also a boatyard from 1974 to 1985 , where hydrofoils , so-called JETFOILs, were manufactured; the most famous model is the Boeing 929. After that, some boats with Boeing licenses were built by other shipyards.
Development since 2001
Due to a crisis in air traffic and the terrorist attacks on September 11, 2001 , no airline was ready to order the fast, but uneconomical Sonic Cruiser . The competitor Airbus gained more and more market share. In the military aviation sector, the group lost a large contract to Lockheed Martin : The X-32 military aircraft developed by Boeing was rejected by the Air Force. In the space sector, NASA accused Boeing of negligence because of the Columbia accident .
Boeing posted fiscal 2002 sales of $ 54.069 billion and profits of $ 0.492 billion. In 2002 Boeing delivered 381 aircraft.
In 2003 the company announced that it would cease production of the 757 at the end of 2004 - only nine aircraft of this type had been ordered since the terrorist attacks in 2001. The 767 , which had been well represented in transatlantic air traffic for the past 20 years, was threatened with failure due to a lack of demand, especially since a successor model, the 787 , was already on offer.
With the 787, the Dreamliner , Boeing tried to regain a foothold in the 250-seater market. The model was intended to replace the 757 and 767. In 2005, the company announced that it would also discontinue production of the 717 at the end of 2006, again due to a lack of demand.
Since 2005, the number of aircraft on order has increased significantly again. Sales and profits have also increased again compared to previous years, so that the crisis ended in 2005. In 2010, however, sales fell year-on-year from $ 68.281 billion to $ 64.308 billion. The civil aircraft division suffered the biggest drop in sales, with sales falling from 34.051 billion to 31.834 billion US dollars. This is likely to be due to the long-term effects of the financial crisis , as many airlines canceled or postponed orders, sometimes because of the renewed sharp rise in the price of oil and continued concerns about the global economic recovery.
However, sales in the military sector (Boeing Defense, Space & Security) also fell from 33.66 billion to 31.94 billion US dollars. In the military sector, reasons similar to those in the civilian sector are likely to play a role for the decline; for example, it was originally planned to purchase 800 F-22 fighters in 1995 , but due to the very high costs and cheaper alternatives such as the F-35 , only 187 were ultimately produced ordered. However, these are consequences of the global financial crisis.
In 2013, Boeing closed its Wichita plant due to cuts in the US defense budget. 2160 employees were laid off from the 3rd quarter of 2012.
In 2012, Boeing had again - since 2007 - more aircraft ordered and delivered than Airbus.
In 2015, Boeing announced that it would move final assembly of Boeing 737s to China as Chinese leasing companies order up to 250 Boeing 737s and 50 long-haul aircraft. The plant was built with the Chinese company Comac , which has a 40% stake in the plant. On December 15, 2018, the first Boeing 737 MAX completed in China was handed over to Air China .
On July 5, 2018, Boeing announced that it would take over Brazilian aircraft manufacturer Embraer for 4/5 at a cost of $ 4.2 billion. On April 25, 2020, negotiations with Embraer were broken off. Embraer regretted getting out. Boeing asserted unfulfilled conditions on the part of Embraer.
Litigation with CIA and FBI
Together with American Airlines , United Airlines , US Airways , Delta Air Lines and Continental Airlines , Boeing filed a lawsuit against the FBI and the CIA in 2007 . It should be clarified whether these airlines are complicit in the terrorist attacks of September 11, 2001 and / or whether their reactions were correct and appropriate.
Financing / State Subsidies
Boeing's research and development work has for many years been heavily subsidized by the US government through NASA, the US Department of Defense , the US Department of Commerce and other government agencies. Since 1990, Boeing has received approximately $ 23.7 billion in government subsidies. In addition, Boeing receives approximately $ 200 million in export subsidies under the Extraterritorial Income Exclusion Act (although these have been declared illegal by the WTO).
Boeing's massive violations of provisions in the “Agreement on Subsidies and Compensation Measures” of the WTO as well as the US-EU Agreement on Trade in Large Civil Aircraft concluded in 1992 led to numerous complaints from the EU to the WTO, and in return to complaints from the USA regarding illegal ones Subsidization of the main competitor Airbus. Proof of unauthorized subsidization is very difficult, since Boeing and EADS (Airbus) generate a large proportion of their sales from armaments contracts from their own governments. It would therefore have to be proven that governments accept excessive prices for armaments. In March 2010, the WTO saw American allegations partially confirmed.
Two crashes in 2018 and 2019 and the following crisis
On October 29, 2018 and March 10, 2019 , Boeing 737 MAX-8 aircraft crashed two times, with a total of 346 fatalities. In both cases, the crash occurred due to incorrect data from the AoA angle of attack sensor, which activated the Maneuvering Characteristics Augmentation Systems (MCAS). This system automatically intervenes in the controls of the aircraft, adjusts the horizontal stabilizer and presses the nose of the aircraft downwards.
Worldwide, therefore, flight bans have been issued for all 371 machines "MAX" versions put into service . Further deliveries of the 737 MAX were halted, causing Boeing to lose $ 5.6 billion in revenue in Q2 2019. $ 4.9 billion was set aside for claims for damages and other grounding costs . Overall, this led to the reporting of a consolidated quarterly loss of 2.9 billion US dollars, the largest in the company's history to date. In the first nine months of the 2019 financial year, deliveries of civil Boeing aircraft fell by 47 percent year-on-year to 302 units. Over the same period, Boeing's share price, which reflects investors' future expectations for the company as a whole, rose 21%.
An independent panel of experts that examined the MAX 737's construction, homologation and crashes criticized both Boeing and the Federal Aviation Administration (FAA). The manufacturer did not provide enough information and the aviation authority did not have enough staff to carry out the inspection. The qualifications of FAA officers have also been questioned. There is also the allegation that the FAA left essential steps of the certification to Boeing itself. At the beginning of October 2019, around one hundred lawsuits against Boeing were pending because of the crashes and the grounding.
On October 11, 2019, the Boeing supervisory board decided that Dennis Muilenburg would hand over the role of chairman of the supervisory board to David Calhoun , a manager of the investment company Blackstone, with immediate effect . Muilenburg remains CEO, but his withdrawal from the board of directors has been interpreted in the press as disempowerment. He had to testify before a committee of the US Congress on October 30, 2019.
On December 16, 2019, the company announced that it would temporarily cease production of the Max 737 from January.
Another burden for the group in the amount of 0.4 billion dollars resulted from the necessary repetition of a test flight of Boeing's new manned spacecraft CST-100 Starliner, which failed in December 2019 . The failure is due to software problems.
Boeing announced in January 2020 that the Model 737 Max would not receive flight certification until at least mid-2020. As a result, Boeing had to pay further compensations to buyers of the aircraft. The agreements with American Airlines or Southwest Airlines were followed by negotiation phases with European airlines such as Ryan Air , Tuifly or Norwegian . Estimates put it at $ 12 billion in compensation payments. 422 completed 737-Max aircraft could not be delivered by April 2020. Around 200 orders from leasing companies were canceled.
The US readmission took place in November 2020.
Additional impact of the 2020 Covid-19 pandemic
Due to the pandemic, production at Boeing was discontinued in several plants on March 25 and resumed around a month later. Severance payments were offered to non-returning workers and the production rates of all types of aircraft were reduced. Around 5,500 workers left Boeing voluntarily with severance payments and around 6,700 workers were given notice in May. In the first 11 months of 2020, the comparatively small number of 118 new Boeing jets were handed over to customers.
In autumn 2020, Boeing forecast a decline in demand for scheduled jets of around 2,270 aircraft, or 11%, over the next ten-year period.
Board of Directors
The Boeing Executive Board is composed as follows (as of January 2020):
- David L. Calhoun (since 2009, CEO since 2020)
- Bertrand-Marc (Marc) Allen (since 2015)
- Michael Arthur (since 2019)
- Heidi B. Capozzi (since 2016)
- Leanne Caret (since 2016)
- Ted Colbert (since 2019)
- Stanley A. Deal (since 2019)
- Brett C. Gerry (since 2019)
- Niel Golightly (since 2020)
- Greg Hyslop (since 2019)
- Timothy Keating (since 2018)
- Jenette E. Ramos (since 2017)
- Diana Sands (since 2016)
- Greg Smith (since 2015)
- Vishwajeet (Vishwa) Uddanwadiker (since 2019)
As is customary in the United States, Boeing also uses lobbying to influence US politics and government procurement measures, especially in the arms and space sector: In 2018, the company spent US $ 15.1 million on lobbyists; so it was 10th of all US corporations in the 20-year period since 1998. For comparison: In the Fortune 500 list of the top-selling US companies, Boeing was number 27 in 2018.
Boeing is no exception when it comes to distributing campaign donations to representatives of both major parties, the Republicans and the Democrats. The donations are mostly distributed fairly evenly. As a company with government contracts, Boeing cannot hand over higher sums to candidates directly. But Political Action Committees , supported by employees, regularly donate larger amounts. Prior to the 2016 presidential election , Hillary Clinton , who has long been considered a certain winner, received $ 229,000, while Donald Trump received just $ 42,500. Donations from Boeing to the inauguration committees of newly elected presidents are legal. Both Barack Obama in 2013 and Donald Trump in 2017 received around one million dollars each. In the 2018 mid-term election in the United States , Boeing spent $ 4.5 million on campaign contributions.
In fiscal 2019, Boeing had sales of $ 76.6 billion , an increase of more than 50% over 19 years. The loss amounted to 2019 to 0.6 billion USD and the market value at year-end to about 206 billion USD , an increase of over 250% compared to the market value at the end of the 2000th
Boeing Vertol has been a separate division of Boeing since 1960. The former Vertol Aircraft Corporation emerged from the Piasecki Helicopter Corporation and is based in Morton , Pennsylvania . In addition to helicopters, it also manufactured rail vehicles.
Boeing Defense, Space and Security
This business is primarily based on the financing of the company's own divisions and subsidiaries. Boeing Capital also appears worldwide as a provider of capital for the purchase of Boeing's products.
From 1974 hydrofoil boats (also called JETFOILs) were produced; for example the Boeing 929 model. No ships are currently being produced.
Aircraft orders and deliveries
From 1955 to May 2006, Boeing ordered a total of 17,521 aircraft.
The orders are offset by possible cancellations and conversions into orders for other types of aircraft, so that there are sometimes negative numbers for individual types.
|year||Orders minus cancellations and conversions||Bestel-
engaged in purchase
|The following figures only include orders from the first three
quarters and cannot be directly compared with the previous figures.
- On August 14, 1989, the 1000th aircraft in production in Everett (a Boeing 767-300ER for SAS Scandinavian Airlines ) was delivered.
- On May 15, 1998, the 2000th aircraft in production in Everett (a Boeing 747-400 for British Airways ) was delivered.
- On February 13, 2006, the 5,000th Boeing 737, an aircraft for Southwest Airlines , left the production line .
- From 1958 to May 2006, Boeing delivered a total of 15,457 aircraft.
- On August 28, 2007, Boeing delivered the 3,000th wide-body aircraft (a 777-200ER to Korean Airlines ).
- On February 2, 2011, the 1,000th Boeing 767 left the final assembly line in Everett, a 767-300ER for All Nippon Airways (ANA).
- In March 2012, the 1000th aircraft in the 777 family (a 777-300ER for Emirates ) was delivered.
- On December 2, 2016, the 500th Boeing 787 was delivered, a 787-9 for AerCap , which leased the aircraft to Air France .
The prices for the aircraft vary depending on the configuration. The following table provides an overview of the average prices for 2012 (in millions of US dollars ):
|Boeing 737 family|
|Boeing 747 family|
|Boeing 767 family|
|Boeing 777 family|
|Boeing 787 family|
Currently in production
- Boeing 737 MAX in the variants -7, -8, -9 and -10
- Boeing 747 in cargo variant -8F
- Boeing 767 in cargo and military variants
- Boeing 777 in the passenger variants -200ER, -200LR, -300ER and the freight variant -200F
- Boeing 787 in the variants -8, -9 and -10
- Boeing Business Jet in the variants BBJ (737-700BBJ), BBJ 2 (737-800BBJ), BBJ 3 (737-900BBJ)
No longer offered
- Boeing 247
- Boeing 307
- Boeing 314
- Boeing 367-80
- Boeing 377
- Boeing 707
- Boeing 717
- Boeing 720
- Boeing 727
- Boeing 737 in all variants from -100 to -500
- Boeing 737 "Next Generation" in the variants -600, -700, -800 and -900ER
- Boeing 747 in all variants except -8F
- Boeing 757
- Boeing 777 in all non-ER or -LR passenger variants
- Boeing B-2707 ( supersonic aircraft planned at the end of the 1960s , project discontinued)
- Boeing 7J7 (planned successor to Boeing 727 at the end of the 1980s, project discontinued)
- Boeing 787-3 (planned for Japan in the late 2000s, project discontinued)
- Boeing Sonic Cruiser (aircraft planned in the mid-1990s, should fly just below the sound limit, project discontinued)
The exact designation of an aircraft varied in the last two digits until the introduction of the 787 and the Max series, for example 737-86N (WL) means that it is a 737-800 with winglets , which is named after the Boeing customer Code owned by the leasing company GECAS . In the case of leasing companies in particular, however, this does not mean that the aircraft flies under the owner's name or its country code .
|Timeline of Boeing's civil jet airliners (including McDonnell Douglas )|
|McDonnell Douglas||Douglas||McDonnell Douglas||Boeing|
|short / medium||Narrow||two-jet||DC-9||MD-80 / MD-90||717 (MD-95)|
|short / medium||Narrow||two-jet||757|
|medium||Narrow||two-jet||737 (736, 73G, 738, 739)|
|short / medium||Narrow||three-jet||727|
|medium / long||Narrow||four-beam||... DC-8|
|medium / long||Narrow||four-beam||… 707 (707, 720)|
|long||Large area||two-jet||767 (762, 763, 764)|
|long||Large area||two-jet||787 ("Dreamliner")|
|long||Large area||two-jet||777 (772, 773)|
|four-beam||747 ("Jumbo Jet")|
Major military aircraft
In addition to weapon systems, rockets ( Minuteman ), guided missiles (e.g. Peacekeeper ), helicopters (including AH-64 Apache , RAH-66 Comanche ) and surveillance and training aircraft , Boeing produces fighter planes , fighters and bombers as well as tankers and transport aircraft .
- B-17 Flying Fortress
- B-29 Superfortress
- B-47 Stratojet
- B-52 Stratofortress
- C-17 Globemaster III (developed by McDonnell Douglas )
- E-3 Sentry AWACS
- E-6 TACAMO / Mercury
- E-8 Joint STARS
- KC-135 Stratotanker
Boeing's armaments sales in 2012 were $ 27.6 billion.
There are three major civil aircraft yards:
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