Mike Martin
"Boeing is back," declared Alan Mulally, president of Boeing Commercial Airplanes Group yesterday.
"We have overcome recent production difficulties and are well on the way to meeting our commitment to deliver a record 620 commercial airplanes by the end of this year. That is more than two-thirds of all commercial jets that will be delivered in 1999."
Mulally's upbeat mood is mirrored by the leaders of the other two Boeing divisions, Military Aircraft and Missile Systems and Space and Communications.
Mulally says that, on the civil side, Boeing forecasts 4.7% growth in air travel, a figure which translates into a global civil aircraft fleet requirement of 28,425 aircraft over 20 years (compared with a world fleet of 12,580 today). Some 20,150 will be new aircraft.
Recalling 1987, Mulally says there was one daily flight between London and Chicago: today there are 21 flights.
"Market trends like fragmentation and deregulation are opening many new opportunities and only Boeing is positioned with a complete product line to meet customer needs," he says.
For the Military Aircraft and Missile Systems division, president Mike Sears says that Boeing has a range of products covering every part of the market cycle, from emerging to decline. "Where we have products mature, we have another set coming up behind it."
The $13 billion military business is delivering double-figure margins and he sees plenty of scope for growth. He notes that increased US defence spending will enable the US Department of Defense to execute its procurement plans.
"This will benefit Boeing because the company plays major roles in key military programmes such as C-17, F-22 and the Apache Longbow helicopter."
Jim Albaugh, president of the Space and Communications division, says he believes the space industry is entering a phase akin to that of 30 years ago when the Apollo programme took men to the moon.
That translates into his $7 billion division aiming to double in size over the next six or seven years. The market overall, currently worth $40 billion a year, could be worth $120 billion by 2008, driven particularly by exponential growth in space communications.
"Boeing is preparing for increased commercialisation and globalisation of space, which represents the company's greatest potential for future growth.
"There are stable, long-term business opportunities in launch services, orbital systems and exploration, and missile defence; and we expect to grow market share in all three areas."
Source: Flight Daily News
