|Founded||July 15, 1916 (as Pacific Aero Products Co.) |
Seattle, Washington, U.S.
|Founder||William E. Boeing|
|Headquarters|| Boeing International Headquarters, |
| Larry Kellner |
(President and CEO)
Number of employees
|161,133 (January 1, 2020)|
The Boeing Company ( // ) is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers; it is the second-largest defense contractor in the world based on 2018 revenue, and is the largest exporter in the United States by dollar value. Boeing stock is included in the Dow Jones Industrial Average. Boeing is incorporated in Delaware.
Boeing was founded by William Boeing in Seattle, Washington on July 15, 1916.The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. Then chairman and CEO of Boeing, Philip M. Condit, assumed those roles in the combined company, while Harry Stonecipher, former CEO of McDonnell Douglas, became president and COO.
The Boeing Company has its corporate headquarters in Chicago, Illinois. US$93.3 billion in sales, ranked 24th on the Fortune magazine "Fortune 500" list (2018), ranked 64th on the "Fortune Global 500" list (2018), and ranked 19th on the "World's Most Admired Companies" list (2018). In 2019, Boeing's global reputation, commercial business, and financial rating suffered after the 737 MAX was grounded worldwide following two fatal crashes in late 2018 and early 2019.Boeing is organized into five primary divisions: Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group. In 2017, Boeing recorded
The firm has also been criticized for supplying and profiting from wars, including the war in Yemen where its missiles were found to be used for indiscriminate attacks, killing many civilians.
The Boeing Company was started in 1916, when American lumber industrialist William E. Boeing founded Aero Products Company in Seattle, Washington. Shortly before doing so, he and Conrad Westervelt created the "B&W" seaplane.In 1917, the organization was renamed Boeing Airplane Company, with William Boeing forming Boeing Airplane & Transport Corporation in 1928. In 1929, the company was renamed United Aircraft and Transport Corporation, followed by the acquisition of several aircraft makers such as Avion, Chance Vought, Sikorsky Aviation, Stearman Aircraft, Pratt & Whitney, and Hamilton Metalplane.
In 1931, the group merged its four smaller airlines into United Airlines. In 1934, the manufacture of aircraft was required to be separate from air transportation.Therefore, Boeing Airplane Company became one of three major groups to arise from dissolution of United Aircraft and Transport; the other two entities were United Aircraft (later United Technologies) and United Airlines.
In 1960, the company bought Vertol Corporation, which at the time, was the biggest independent fabricator of helicopters.During the 1960s and 1970s, the company diversified into industries such as outer space travel, marine craft, agriculture, energy production and transit systems.
In 1995, Boeing partnered with Russian, Ukrainian and Anglo-Norwegian organizations to create Sea Launch, a company providing commercial launch services sending satellites to geostationary orbit from floating platforms.In 2000, Boeing acquired the satellite segment of Hughes Electronics.
Corporate headquarters were moved from Seattle to Chicago in 2001.
After two fatal crashes of the Boeing 737 MAX narrow-body passenger airplanes in 2018 and 2019, aviation regulators and airlines around the world grounded all 737 MAX airliners.A total of 387 aircraft were grounded. Boeing's reputation, business, and financial rating has suffered after these groundings, questioning Boeing's strategy, governance, and focus on profits and cost efficiency. The Wall Street Journal reported on May 5, 2019, that Boeing had known of the issue with the system for "about a year" before the crash in Indonesia. In December 2019, Boeing announced it will suspend 737 MAX production from January 2020. Soon after, on December 23, then CEO Dennis Muilenburg resigned and was replaced by David Calhoun.
In May 2020, the company cut 12,000 jobs due to the drop in air travel during the COVID-19 pandemic.In July 2020, Boeing reported a loss of $2.4 billion as a result of the pandemic and the grounding of its 737 MAX aircraft. As a result of the profit loss, the company announced that it is planning to do more job and production cuts.
The corporation's three main divisions are Boeing Commercial Airplanes (BCA), Boeing Defense, Space & Security (BDS), and Boeing Global Services.
In 2006, the UCLA Center for Environmental Risk Reduction released a study showing that Boeing's Santa Susana Field Laboratory, a site that was a former Rocketdyne test and development site in the Simi Hills of eastern Ventura County in Southern California, had been contaminated by Rocketdyne with toxic and radioactive waste. Boeing agreed to a cleanup agreement with the EPA in 2017.Clean up studies and lawsuits are in progress.
The airline industry is responsible for about 11% of greenhouse gases emitted by the U.S. transportation sector.Aviation's share of the greenhouse gas emissions was poised to grow, as air travel increases and ground vehicles use more alternative fuels like ethanol and biodiesel. Boeing estimates that biofuels could reduce flight-related greenhouse-gas emissions by 60 to 80%. The solution blends algae fuels with existing jet fuel.
Boeing executives said the company was collaborating with Brazilian biofuels maker Tecbio, Aquaflow Bionomic of New Zealand, and other fuel developers around the world. As of 2007, Boeing had tested six fuels from these companies, and expected to test 20 fuels "by the time we're done evaluating them".Boeing also joined other aviation-related members in the Algal Biomass Organization (ABO) in June 2008.
Air New Zealand and Boeing are researching the jatropha plant to see if it is a sustainable alternative to conventional fuel.A two-hour test flight using a 50–50 mixture of the new biofuel with Jet A-1 in a Rolls Royce RB-211 engine of a 747-400 was completed on December 30, 2008. The engine was then removed to be studied to identify any differences between the Jatropha blend and regular Jet A1. No effects on performances were found.
On August 31, 2010, Boeing worked with the U.S. Air Force to test the Boeing C-17 running on 50% JP-8, 25% Hydro-treated Renewable Jet fuel and 25% of a Fischer–Tropsch fuel with successful results.
For NASA's N+3 future airliner program, Boeing has determined that hybrid electric engine technology is by far the best choice for its subsonic design. Hybrid electric propulsion has the potential to shorten takeoff distance and reduce noise.
In 2008 and 2009, Boeing was second on the list of Top 100 US Federal Contractors, with contracts totaling US$22 billion and US$23 billion respectively. Since 1995, the company has agreed to pay US$1.6 billion to settle 39 instances of misconduct, including US$615 million in 2006 in relation to illegal hiring of government officials and improper use of proprietary information.
Boeing secured the highest ever tax breaks at the state level in 2013.
Boeing's spent US$16.9 million on lobbying expenditures in 2009. In the 2008 presidential election, Barack Obama "was by far the biggest recipient of campaign contributions from Boeing employees and executives, hauling in US$197,000 – five times as much as John McCain, and more than the top eight Republicans combined".
Boeing has a corporate citizenship program centered on charitable contributions in five areas: education, health, human services, environment, the arts, culture, and civic engagement. [ better source needed ] In 2011, Boeing spent US$147.3 million in these areas through charitable grants and business sponsorships. In February 2012, Boeing Global Corporate Citizenship partnered with the Insight Labs to develop a new model for foundations to more effectively lead the sectors they serve. [ better source needed ]
The company is a member of the U.S. Global Leadership Coalition, a Washington D.C.-based coalition of more than 400 major companies and NGOs that advocate a larger International Affairs Budget, which funds American diplomatic and development efforts abroad.A series of U.S. diplomatic cables show how U.S. diplomats and senior politicians intervene on behalf of Boeing to help boost the company's sales.
In 2007 and 2008, the company benefited from over US$10 billion of long-term loan guarantees, helping finance the purchase of their commercial aircraft in countries including Brazil, Canada, Ireland, and the United Arab Emirates, from the Export-Import Bank of the United States, some 65% of the total loan guarantees the bank made in the period.
In December 2011, the non-partisan organization Public Campaign criticized Boeing for spending US$52.29 million on lobbying and not paying taxes during 2008–2010, instead getting US$178 million in tax rebates, despite making a profit of US$9.7 billion, laying off 14,862 workers since 2008, and increasing executive pay by 31% to US$41.9 million in 2010 for its top five executives.
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For the fiscal year 2017, Boeing reported earnings of US$8.191 billion, with an annual revenue of US$93.392 billion, a 1.25% decline over the previous fiscal cycle. Boeing's shares traded at over $209 per share, and its market capitalization was valued at over US$206.6 billion.
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in mil. US$
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Between 2010 and 2018, Boeing increased its operating cash flow from $3 to $15.3 billion, sustaining its share price, by negotiating advance payments from customers and delaying payments to its suppliers. This strategy is sustainable only as long as orders are good and delivery rates are increasing.
From 2013 to 2019, Boeing spent over $60 billion on dividends and stock buybacks, twice as much as the development costs of the 787.
The company's employment totals are listed below.
Approximately 1.5% of Boeing employees are in the Technical Fellowship program, a program through which Boeing's top engineers and scientists set technical direction for the company.The average salary at Boeing is $76,784, reported by former employees.
Board of directors
Chief executive officer
Chairman of the board
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. It is headquartered in Atlanta, Georgia. The airline, along with its subsidiaries and regional affiliates, including Delta Connection, operates over 5,400 flights daily and serves 325 destinations in 52 countries on six continents. Delta is a founding member of the SkyTeam airline alliance.
Bombardier Aviation is a division of Bombardier Inc. It is headquartered in Dorval, Quebec, Canada.
The Boeing 737 is a narrow-body aircraft produced by Boeing Commercial Airplanes at its Renton Factory in Washington. Developed to supplement the Boeing 727 on short and thin routes, the twinjet retains the 707 fuselage cross-section and nose with two underwing turbofans. Envisioned in 1964, the initial 737-100 made its first flight in April 1967 and entered service in February 1968 with Lufthansa. The lengthened 737-200 entered service in April 1968. It evolved through four generations, offering several variants for 85 to 215 passengers.
Norwegian Air Shuttle ASA, trading as Norwegian, is a Norwegian low-cost airline and Norway's largest airline. It is the fourth largest low-cost carrier in Europe behind Wizz Air, easyJet and Ryanair, the largest airline in Scandinavia, and the ninth-largest airline in Europe in terms of passenger numbers. It offers a high-frequency domestic flight schedule within Scandinavia and Finland, and to business destinations such as London, as well as to holiday destinations in the Mediterranean and the Canary Islands, transporting over 30 million people in 2016. The airline is known for its distinctive livery of white with a red nose, with portraits of high achievers on the tail fins of its aircraft.
Luxair, legally Luxair S.A., Société Luxembourgeoise de Navigation Aérienne, is the flag carrier airline of Luxembourg with its headquarters and hub at Luxembourg Airport. It operates scheduled services to destinations in Europe, North Africa, the Mediterranean and Middle East with additional charter and seasonal services. It is Luxembourg's only passenger-carrying airline offering regular, non-charter service.
SilkAir (Singapore) Private Limited, operating as SilkAir, is a full-service regional airline with its head office in Airline House in Singapore; previously the head office was on the fifth storey of the SIA Superhub in Singapore. It is a wholly owned subsidiary of Singapore Airlines and operates scheduled passenger services from Singapore to 38 cities in 14 countries in Southeast Asia, the Indian Subcontinent, East Asia and Northern Australia.
Air Tanzania Company Limited (ATCL) is the flag carrier airline of Tanzania based in Dar es Salaam with its hub at Julius Nyerere International Airport. It was established as Air Tanzania Corporation (ATC) in 1977 after the dissolution of East African Airways and has been a member of the African Airlines Association since its inception. The airline was wholly owned by the Tanzanian Government until 2002 when it was partially privatised as per the directive of the Bretton Woods Institutions to implement the country's Structural Adjustment Program. The government therefore reduced its shareholding to 51 percent and entered into a partnership with South African Airways.
Boeing Commercial Airplanes (BCA) is a division of the Boeing Company. It designs, assembles, markets, and sells jet airliners and business jets ; it also provides product-related maintenance and training to customers worldwide. It operates from division headquarters in Renton, Washington, with more than a dozen engineering, manufacturing, and assembly facilities located throughout the U.S. and internationally. BCA includes the assets of the Douglas Aircraft division of the former McDonnell Douglas Corporation, which merged with Boeing in 1997. In late 2016, BCA was home to some 78,000 employees.
Singapore Airlines passenger fleet consists of wide-body aircraft from five aircraft families: the Airbus A330, Airbus A350 XWB, Airbus A380, Boeing 777 and Boeing 787 Dreamliner. The airline also operates Boeing 747-400 cargo aircraft. As of 29 February 2020, there were 132 passenger aircraft and seven freighters registered in the Singapore Airlines fleet.
The Airbus A220 is a family of narrow-body, twin-engine, medium-range jet airliners. The airliner was designed by Bombardier Aerospace and originally marketed as the Bombardier CSeries. Bombardier sold the CSeries airliner program to Airbus and it is now owned by Airbus Canada Limited Partnership, a joint venture between Airbus and the Quebec government's investment arm Investissement Québec.
SpiceJet is an Indian low-cost airline headquartered in Gurgaon, Haryana. It is the second largest airline in the country by number of domestic passengers carried, with a market share of 13.6% as of March 2019. The airline operates 630 daily flights to 64 destinations, including 54 Indian and 15 international destinations from its hubs at Delhi and Hyderabad.
Yellowstone is a Boeing Commercial Airplanes project to replace its entire civil aircraft portfolio with advanced technology aircraft. New technologies to be introduced include composite aerostructures, more electrical systems, and more fuel-efficient turbofan engines. The term "Yellowstone" refers to the technologies, while "Y1" through "Y3" refer to the actual aircraft.
The competition between Airbus and Boeing has been characterised as a duopoly in the large jet airliner market since the 1990s. This resulted from a series of mergers within the global aerospace industry, with Airbus beginning as a European consortium while the American Boeing absorbed its former arch-rival, McDonnell Douglas, in 1997. Other manufacturers, such as Lockheed Martin and Convair in the United States, and British Aerospace and Fokker in Europe, were no longer able to compete and effectively withdrew from this market.
The Boeing 737 Next Generation, commonly abbreviated as 737NG, or 737 Next Gen is a narrow-body aircraft powered by two engines and produced by Boeing Commercial Airplanes. Launched in 1993 as the third generation derivative of the Boeing 737, it has been produced since 1997 and is an upgrade of the 737 Classic (−300/-400/-500) series.
Airbus SE is a European Multinational Aerospace corporation. As of 2019, Airbus is the world's largest airliner manufacturer and took the most airliner orders. Airbus is registered in the Netherlands; its shares are traded in France, Germany and Spain. It designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft in the European Union and various other countries. The company has three divisions: Commercial Aircraft, Defence and Space, and Helicopters, the third being the largest in its industry in terms of revenues and turbine helicopter deliveries.
Avolon is an aircraft leasing company based in Dublin, Ireland. It was founded in May 2010 by Dómhnal Slattery, and a team from RBS Aviation Capital including John Higgins, Tom Ashe, Andy Cronin, Simon Hanson and Ed Riley with initial capital of US$1.4 billion. The equity commitment of US$1.4 billion was from four leading international investors: Cinven, CVC Capital Partners, Oak Hill Capital Partners and the Government of Singapore Investment Corporation. Between 2010 and 2014, Avolon also raised US$6.1 billion in debt from the capital markets and a range of commercial and specialist aviation banks including Wells Fargo Securities, Citi, Deutsche Bank, BNP Paribas, Credit Agricole, UBS, DVB, Nord LB and KfW IPEX-Bank. In 2017, Avolon entered the public debt markets and raised a total over US$9 billion in debt finance. In November 2018, Avolon announced that Japanese financial institution, ORIX Corporation had acquired a 30% stake in the business from its shareholder Bohai Capital, part of China's HNA Group. In April 2019, Avolon announced it had raised US$2.5 billion of additional unsecured debt which resulted in an investment grade credit rating from Fitch, Moody's and S&P Global.
The Boeing 737 MAX is the fourth generation of the Boeing 737, a narrow-body airliner manufactured by Boeing Commercial Airplanes (BCA). It succeeds the Boeing 737 Next Generation (NG). It is based on earlier 737 designs, re-engined with more efficient CFM International LEAP-1B engines, aerodynamic changes, which include its distinctive split-tip winglets, and airframe modifications.
In March 2019, the Boeing 737 MAX passenger airliner was grounded worldwide after 346 people died in two crashes, Lion Air Flight 610 on October 29, 2018 and Ethiopian Airlines Flight 302 on March 10, 2019. Ethiopian Airlines immediately grounded its remaining MAX fleet. On March 11, the Civil Aviation Administration of China ordered the first nationwide grounding, followed by most other aviation authorities in quick succession. The U.S. Federal Aviation Administration (FAA) publicly affirmed the airworthiness of the airplane on March 11, but grounded it on March 13 after receiving evidence of accident similarities. All 387 aircraft, which served 8,600 flights per week for 59 airlines, were barred from service by March 18, 2019. The groundings have become the longest ever of a U.S. airliner.
This is the history of American aerospace manufacturing company Boeing.
The Boeing 737 MAX groundings have had a deep financial effect on the aviation industry and a significant effect on the national economy of the United States. No airline took delivery of the MAX during grounding. Boeing slowed MAX production to 42 aircraft per month until in January 2020, when they halted until the airplane is reapproved by regulators. Boeing has suffered directly through increased costs, loss of sales and revenue, loss of reputation, victims litigation, client compensation, decreased credit rating and lowered stock value. In January 2020, the company estimated a loss of $18.4 billion for 2019, and it reported 183 canceled MAX orders for the year.
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