By Stephen Trimble
Manufacturer aims to rebuild research and development war chest for possible new airliner launches from 2008
Boeing is making sure it is financially prepared for the possibility of launching narrowbody and widebody development programmes after 2008.
Boeing chief executive James McNerney says the company has launched a broad campaign to rebuild a financial war chest for R&D. The strategy includes a current emphasis on boosting labour productivity rates and the transfer of the 787 and 747-8 development programmes into the production phase by early 2008.
These moves should allow the manufacturer to absorb the costs of launching both a 737 replacement and a new variant of the 777, if the competitive environment demands such a response, says McNerney. "I think the key point is we will have created economic room to respond properly to those competitive environments through some [of] the productivity initiatives we're driving, through some of the volume initiatives...and we will be ready," says McNerney.
Boeing's spending on R&D is expected to peak in 2007, as the 787 is scheduled to start the transition into production. It plans to invest $2.8-3 billion in 2008, slightly down from a projected spend of $3.2-3.4 billion this year. In the first quarter, the commercial aircraft segment accounted for $788 million of the $999 million total spend on R&D.
"The R&D associated with 787 will be winding down later this year," says McNerney. "We will still have spending on the 747-8. And then the timing gets less certain as we will have to respond with the 777 and the narrowbody replacement."
Source: Flight International
