Chris Jasper/LONDON Andrew Doyle/FRANKFURT
Boeing is to transform three non-airframe operations into new business units for in-flight entertainment and communication services, air traffic management (ATM) and financial services.
Boeing chairman Phil Condit says the new structure aims to "maximise the value of three exciting growth opportunities", and adds: "We are organising our resources to ensure the execution of our business growth strategies in the new economy, while taking advantage of our 'system of systems' integration capabilities."
Boeing aims to transform the Boeing Capital unit from an operation which helps sell aircraft into a true profit centre, similar to General Electric's huge GE Capital arm. Boeing Capital, the US giant's growing financial services arm, inherited from McDonnell Douglas, has more than $4 billion in assets. James Palmer, a Boeing senior vice president (VP) and formerly president of the Shared Services unit, will be president.
One of Boeing Capital's most important deals to date has been to underwrite the 15-year lease of up to 44 converted 757-200 freighters to DHL. This all-encompassing package for ex-British Airways 757s includes lease financing for part of the fleet and a long-term maintenance agreement.
Connexion by Boeing plans to offer high-speed in-flight internet, e-mail and live satellite television services. The business, launched in April, targets operators of widebody and business aircraft, although it has yet to secure a launch customer. Senior VP Scott Carson, former executive VP and chief financial officer of Commercial Airplanes, will be president.
The ATM unit will aim to bring new technology to air traffic control (ATC) and airport operations, and will be headed by senior VP John Hayhurst, previously VP, business development with Commercial Airplanes. The unit has been boosted by the acquisition of navigation services provider Jeppesen and the Hughes' satellite business, with Boeing eyeing a market for replacing ATC infrastructure in the USA and Europe with a space-based solution.
This could usher in an era of "free flight" where pilots are able to fly their aircraft unencumbered by traditional ATC constraints. This in turn promises to release much needed airspace capacity which, Boeing believes, will ultimately be translated into stronger demand for its airliners.
Source: Flight International
