Boeing

Boeing Company, is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001. Boeing is made up of multiple business units, which are Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group.

Boeing is among the largest global aircraft manufacturers by revenue, orders and deliveries, and the third largest aerospace and defense contractor in the world based on defense-related revenue. Boeing is the largest exporter by value in the United States. Its stock is a component of the Dow Jones Industrial Average.

2000s

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, Chicago just outside the Loop, Chicago.

On October 10, 2001, Boeing lost to its rival Lockheed Martin in the fierce competition for the multi-billion 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.

After several decades of success, Boeing lost ground to Airbus and subsequently lost its position as market leader 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 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 highly popular choice with airlines, and won a record number of pre-launch orders at a time in which Airbus was seen to be struggling with delays and cost overruns in producing its A380 superjumbo; at the same time, several airlines threatened to switch their A380 orders to Boeing's modernized version of the 747, the 747-8. Airbus's response to the 787, the Airbus A350, received a lukewarm response at first when it was announced as an improved version of the A330, and only gained significant orders when Airbus promised an entirely new design. The 787 has encountered delays in coming to production, with the first flight not occurring until late 2009, more than two years late. Production will be increased to 10 Boeing 787s per month by 2013.

In 2004, Boeing ended production of the 757 after 1,050 were produced. More advanced, stretched versions of the 737 were beginning to compete against the 757, and the new 787-3 filled 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.

In May 2005, Boeing announced its intent to form a joint venture, United Launch Alliance with its competitor Lockheed Martin. The new venture will be the largest provider of rocket launch services to the US government. The joint venture gained regulatory approval and completed the formation on December 1, 2006.

On August 2, 2005, Boeing sold its Rocketdyne rocket engine division to Pratt & Whitney. On May 1, 2006, Boeing announced that it had reached a definitive agreement 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).

On August 18, 2007, NASA announced that Boeing would be 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, will be constructed at NASA's Michoud Assembly Facility near New Orleans, the same site where Boeing constructed the massive S-IC stage of the Saturn V rocket in the 1960s.

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 claimed that the former employee Kenneth Branch, who went to work for McDonnell Douglas and Boeing, passed 25,000 proprietary documents to his new employers. Lockheed argued that these documents allowed Boeing to win 21 of the 28 tendered military satellite launches.

In July 2003, Boeing was penalized, with the Pentagon stripping $1 billion worth of contracts 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.

2010s

In March 2011, Boeing made a deal with two Chinese airlines for a total 43 aircraft worth about $10 billion. Air China will buy 5 Boeing 747-8 aircraft which will be delivered between 2014 to 2015 if the deal is approved by the Chinese government. Hong Kong Airlines have still to finalize an agreement to buy 38 aircraft, which include 6 freighters and 30 Boeing Dreamliners.

The 92 EU-US Agreement notes

Until the late 1970s the US had an almost de facto monopoly in the Large Civil Aircraft (LCA) sector. The Airbus consortium (created in 1969) started competing effectively in the 1980s. At that stage the US 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 US LCA manufacturers through NASA and Defense programs.

The EU and the US started bilateral negotiations for the limitation of government subsidies to the LCA sector in the late 1980s. Negotiations were concluded in 1992 with the signature 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 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.

Defense and other

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.

Boeing also developed the Boeing KC-767 aerial refueling tanker. Italy ordered four KC-767s in December 2002, with the first one scheduled to be delivered in November 2008. Boeing and Italy are negotiating on the penalty for the late deliveries. Boeing stated the delay is due to such factors as design changes, expanded US flight testing, greater-than-expected challenges to software integration, and the complexity of getting the tanker ready for certification by the Federal Aviation Administration. Boeing's late delivery of a tanker to Japan in 2007 incurred a penalty "well under $5 million" according to Boeing. Boeing delivered the third aircraft to Japan in March 2009 and the last aircraft was delivered in January 2010.

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. Codenamed 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 would offer 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.

Electric propulsion

Boeing has stated that for the subsonic concept, hybrid electric engine technology is a clear winner. Hybrid electric propulsion has the potential to shorten takeoff distance and reduce noise.

Political contributions, federal contracts, advocacy

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.

In both 2009 and 2008 Boeing was second on the list of Top 100 US Federal Contractors, with contracts totalling $22.0 billion and $23.1 billion respectively.