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Boeing: News Releases

2011-03-21T16:58:00.000-07:00

SEATTLE, March 20, 2011 /PRNewswire/ -- The Boeing (NYSE: BA) 747-8 Intercontinental successfully began its flight test program today, taking off from Paine Field in Everett, Wash., before several thousand employees, customers, suppliers and community leaders. The airplane landed four hours and 25 minutes later at Boeing Field in Seattle. The 747-8 Intercontinental's first flight marks the beginning of a flight test program that will finish in the fourth quarter.
With 747 Chief Pilot Mark Feuerstein and Capt. Paul Stemer at the controls, the newest member of the 747 family took off at 9:59 a.m. and landed at 2:24 p.m. local time.
"What a great privilege to be at the controls of such a great airplane on its first flight," said Feuerstein. "And what an honor to share this day with the thousands of men and women who designed and built this airplane."
Today's flight was the first of more than 600 flight hours in the test program for the new 747-8 Intercontinental. The airplane followed a route over Eastern Washington, where it underwent tests for basic handling and performance. The airplane reached a cruising altitude of 19,000 feet (5,791 meters), and a speed of up to 250 knots, or about 288 miles per hour (463 kilometers).

"This a great day for the 747-8 team and for all of Boeing. What an honor it is to see such a beautiful airplane fly," said Elizabeth Lund, vice president and general manager of the 747-8 program. "I want to thank everybody who had a hand in designing, building and preparing this airplane for flight – our engineers, our manufacturing employees, our colleagues in Boeing Fabrication, our colleagues in Boeing Test & Evaluation, our external suppliers – for all their hard work."
The 747-8 Intercontinental will have the lowest seat-mile cost of any large commercial jetliner, with 12 percent lower costs than its predecessor, the 747-400. The airplane provides 16 percent better fuel economy, 16 percent less carbon emissions per passenger and generates a 30 percent smaller noise footprint than the 747-400. The 747-8 Intercontinental applies interior features from the 787 Dreamliner that includes a new curved, upswept architecture giving passengers a greater feeling of space and comfort, while adding more room for personal belongings.

Korean Air and VIP customers have joined launch customer Lufthansa in ordering a total of 33 747-8 Intercontinentals. First delivery of the 747-8 Intercontinental is scheduled for the fourth quarter. Air China also has agreed to order five Intercontinentals, pending government approval.
The airplane is painted in a new Sunrise livery of red-orange and is a significant departure from Boeing's standard blue. The new colors honor many key Boeing customers whose cultures recognize these colors as symbols of prosperity and good luck. The Sunrise livery only will appear on the first 747-8 Intercontinental, which is scheduled to be delivered to a VIP customer at the end of the year.

Boeing: News Releases

Boeing 747-8 Intercontinental Completes Taxi Tests Successfully - Mar 18, 2011

2011-03-21T16:53:00.000-07:00

EVERETT, Wash., March 18, 2011 /PRNewswire/ -- Boeing (NYSE: BA) successfully completed high-speed taxi tests on the first 747-8 Intercontinental today. This is the last in a series of functional tests planned in preparation for first flight.
"The pilots report the airplane performed well," said Elizabeth Lund, vice president and general manager of the 747 program. "We'll analyze the test data, but we're confident that the airplane is ready for first flight and ready to enter the flight test phase of the program."
During the testing, the airplane reached a top speed of approximately 90 knots (103 mph, 167 kph), and the pilots lifted the nose gear from the pavement. Video highlights of the taxi testing will be posted to www.boeing.com and www.newairplane.com when they are available.

Boeing 747-8 Intercontinental Completes Taxi Tests Successfully - Mar 18, 2011

Boeing Begins Final Assembly of 1st P-8A Poseidon Production Aircraft

2011-03-09T12:34:00.000-08:00

RENTON, Wash., March 9, 2011 -- Boeing [NYSE: BA] today began final assembly of the first U.S. Navy P-8A Poseidon production aircraft in the company's Renton factory. The P-8A is the first of six low-rate initial production aircraft that Boeing is building as part of a $1.6 billion contract awarded by the Navy in January.
The Navy plans to purchase 117 of the Boeing 737-based P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace its P-3 fleet.

“Boeing will deliver this first aircraft to the Navy on schedule in 2012 in preparation for initial operational capability, which is planned for 2013,” said Chuck Dabundo, Boeing vice president and P-8 program manager. “Our team has built seven P-8A test aircraft to date and the process improvements and efficiencies we’ve incorporated will continue to help reduce costs as the program moves forward.”
The Poseidon team is using a first-in-industry in-line production process that draws on Boeing’s Next-Generation 737 production system. All aircraft modifications unique to the P-8A are made in sequence during fabrication and assembly.
The start of final assembly follows Spirit AeroSystems’ delivery of the P-8A fuselage to Boeing. The fuselage arrived via rail car on March 7 and was loaded into a tooling fixture. Boeing workers have begun installing systems, wires and other small parts.
“We’re excited to transition from the development airplanes to production,” said John Pricco, Boeing Commercial Airplanes P-8 program manager. “Our team’s tremendous work has put us in a good position as we ramp up to build both the P-8A for the United States and the P-8I for India.”
Boeing was awarded a System Development and Demonstration contract in 2004 to build and test six flight-test and two ground-test P-8A aircraft. The first three flight-test planes -- T1, T2 and T3 -- are completing testing at Naval Air Station Patuxent River, Md. The program’s static test plane, S1, completed its test program earlier this year.

A derivative of the Next-Generation 737-800, the Poseidon is built by a Boeing-led industry team that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.
A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 66,000 employees worldwide.

Boeing Begins Final Assembly of 1st P-8A Poseidon Production Aircraft

Boeing 747-8 Intercontinental Completes Engine Runs Successfully - Mar 8, 2011

2011-03-09T12:33:00.000-08:00

EVERETT, Wash., March 8, 2011 /PRNewswire/ -- Boeing (NYSE: BA) successfully completed the first engine runs for the 747-8 Intercontinental today. The milestone marks a key step in preparing Boeing's largest-ever passenger jet for flight test.
"The integrated airplane systems and engines performed as expected," said Elizabeth Lund, vice president and deputy program manager of the 747 program. "This result allows us to continue moving forward to first flight."
Engine runs began at 11:57 a.m. (PST) Tuesday and lasted approximately two hours and 45 minutes. During initial engine runs, the engines are started and operated at various power settings to ensure all systems perform as expected. The engine run test began with the Auxiliary Power System providing power to start the first of four GE GEnx-2B engines. The remaining three engines were started using the cross-bleed function.
Basic systems checks continued throughout the test. The engines were powered down and inspected and will be restarted following a technical review. The team completed a vibration check and monitored the shutdown logic to ensure it functioned as expected.
The GEnx-2B engine is optimized for the 747-8. The new engine contributes to a reduction in fuel burn, emissions and noise, which gives customers the lowest operating costs and best economics of any large passenger airplane while providing enhanced environmental performance.

Boeing 747-8 Intercontinental Completes Engine Runs Successfully - Mar 8, 2011

Boeing Delivers Copa Airlines' First 737 Boeing Sky Interior - Mar 3, 2011

2011-03-04T10:07:00.000-08:00

SEATTLE, March 3, 2011 /PRNewswire/ -- Boeing (NYSE: BA) today delivered a Next-Generation 737 with the new Boeing Sky Interior to Copa Airlines – the first Latin American carrier to take delivery of Boeing's innovative interior.
"We are proud to bring this state-of-the art technology and unmatched passenger experience to our valued customers," said Pedro Heilbron, CEO of Copa Airlines. "This new interior represents yet another example of our progressive leadership in the Americas and will enhance the world-class service for which Copa Airlines has become known."
The Boeing Sky Interior introduces new cove lighting and curving architecture that create a distinctive entry way. Passengers will enjoy a more open cabin and a soft blue sky overhead simulated by light-emitting diode (LED) lighting. The new interior also brings new, modern, sculpted sidewalls and window reveals to draw passengers' eyes to the view outside the window as well as larger stowage bins allowing passengers the ability to store their luggage closer to their seats.
The 737 Boeing Sky Interior is the latest in a series of enhancements designed to improve the Next-Generation 737 for both airlines and passengers. The next to come will be a package of performance improvements that will reduce fuel consumption and carbon emissions by 2 percent – making the airplane a full 7 percent more efficient than the first Next-Generation 737s delivered. The performance improvements to the airframe and engine are in certification test, and will be phased into production between mid-2011 and early 2012.
Operating out of the "Hub of the Americas" in Panama City, Copa provides service to 52 destinations in 25 countries. Today's delivery brings Copa's current 737-800 fleet to 18.

Boeing Delivers Copa Airlines' First 737 Boeing Sky Interior - Mar 3, 2011

Boeing: News - Media Center - Image Gallery

2011-02-25T15:22:00.000-08:00

ST. LOUIS, Feb. 25, 2011 – Boeing [NYSE: BA] today received an IEEE Milestone award in Electrical Engineering and Computing from the Institute of Electrical & Electronics Engineers (IEEE) in recognition of the company's work on the Mercury spacecraft. IEEE is the world's largest technical professional association.
The Mercury spacecraft, America’s first manned space vehicle, was designed, developed and built by McDonnell Douglas Aircraft (a Boeing heritage company) in St. Louis. A total of 20 Mercury spacecraft were delivered to NASA, six of which carried astronauts into space between 1961 and 1963. John Glenn piloted Friendship 7 in the first U.S. human orbital flight on Feb. 20, 1962.
"We are truly honored to receive this recognition and pay tribute to the engineers who worked on the Mercury spacecraft," said Dennis Muilenburg, president and CEO, Boeing Defense, Space & Security. "They helped set a strong foundation on which America's space program continues to grow and thrive. Boeing and our heritage companies have supported human space exploration from the beginning, and our talented, innovative engineers and other employees will continue to build upon this legacy for many years to come."
The award cites electrical and electronic systems invented by McDonnell Douglas Aircraft engineers that made the Mercury flights and future space flights possible. Among the engineers' key contributions were navigation and control instruments, autopilot, rate stabilization and control, and fly-by-wire systems.
The IEEE Milestones in Electrical Engineering and Computing program honors significant technical achievements that occurred at least 25 years ago in technology areas associated with IEEE. To date, more than 100 Milestones have been approved and dedicated around the world. This award also recognizes technological innovation and excellence for the benefit of humanity.
Home to Boeing Defense, Space & Security headquarters, the Boeing St. Louis site employs approximately 15,600 employees and is Missouri’s largest manufacturer and second-largest employer. Key products manufactured at the site include F/A-18E/Fs, F-15s, C-17s and weapons.
A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 66,000 employees worldwide.

Boeing: News - Media Center - Image Gallery

Boeing Receives USAF Contract to Build Next-Generation Refueling Tanker

2011-02-24T17:57:00.000-08:00

ST. LOUIS, Feb. 24, 2011 -- The Boeing Company [NYSE: BA] has received a contract from the U.S. Air Force to build the next-generation aerial refueling tanker aircraft that will replace 179 of the service’s 400 KC-135 tankers.
The contract calls for Boeing to design, develop, manufacture and deliver 18 initial combat-ready tankers by 2017.
"We're honored to be given the opportunity to build the Air Force's next tanker and provide a vital capability to the men and women of our armed forces," said Jim McNerney, Boeing chairman, president and CEO. "Our team is ready now to apply our 60 years of tanker experience to develop and build an airplane that will serve the nation for decades to come."
In selecting the Boeing NewGen Tanker after a lengthy and rigorous proposal process, the Air Force has chosen an American-built, multi-mission tanker that is based on the proven Boeing 767 commercial airplane and meets all requirements at the lowest risk for the warfighter and the best value for taxpayers. The Boeing proposal was created by an integrated "One Boeing" team from various sites across the company, including employees from the Commercial Airplanes; Defense, Space & Security; and Engineering, Operations & Technology organizations.
"This contract award would not have been possible without the hundreds of Boeing employees across the entire company, and the thousands of our industry teammates, who remained laser-focused on our commitment to offer a solution that is first in capability and best in value,” said Dennis Muilenburg, president and CEO of Boeing Defense, Space & Security. "This award is also a tribute to the Air Force and Defense Department officials who worked so tirelessly to make this procurement process fair, ultimately resulting in the selection of the right plane for the mission. We look forward to working with our Air Force customer to deliver this much needed capability to the servicemen and women we are honored to serve."
The KC-46A tankers will be built using a low-risk approach to manufacturing by a trained and experienced U.S. work force at existing Boeing facilities. The KC-46A tanker also will fuel the economy as it supports approximately 50,000 total U.S. jobs with Boeing and more than 800 suppliers in more than 40 states.
"Boeing has always been committed to the integrity of the competitive process, and the men and women across our Boeing commercial and defense teams and our entire supplier network are ready to extend that commitment to delivering these tankers on time and on budget," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes.

Based on the proven Boeing 767 commercial airplane, the KC-46A Tanker is a widebody, multi-mission aircraft updated with the latest and most advanced technology and capable of meeting or exceeding the Air Force's needs for transport of fuel, cargo, passengers and patients. It includes state-of-the-art systems to meet the demanding mission requirements of the future, including a digital flight deck featuring Boeing 787 Dreamliner electronic displays and a flight control design philosophy that places aircrews in command rather than allowing computer software to limit combat maneuverability. The NewGen Tanker also features an advanced KC-10 boom with an expanded refueling envelope, increased fuel offload rate and fly-by-wire control system.
To learn more about the KC-46A Tanker, visit www.UnitedStatesTanker.com.
A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 66,000 employees worldwide.

Boeing Receives USAF Contract to Build Next-Generation Refueling Tanker

Boeing: News - Media Center - Image Gallery

2011-02-24T09:26:00.000-08:00

Boeing Completes 1,000th 787 Flight

EVERETT, Wash., Feb. 24, 2011 – The Boeing [NYSE: BA] 787 Dreamliner made its1,000th flight yesterday, marking another milestone in the flight test program. There are seven airplanes participating in flight testing. The landing of 787 flight test airplane ZA004, just after 1 p.m. MST at Yuma International Airport, counted as the official1,000th flight.
The program is near its3,000th hour of flying and 787s have flown a total of more than one million miles.
”The team is making great progress,” said Scott Fancher, vice president and general manager of the 787 program. “We are getting through the test conditions needed to certify this airplane with nearly 80 percent of the conditions for the first model, with Rolls-Royce engines, already complete. And, we’re more than 60 percent of the way through the test conditions for the 787s with General Electric engines.”
Capt. Mike Carriker, chief pilot for the 787, Boeing Test & Evaluation, said the airplane continues to behave well in testing.
“We’re really eager to get this airplane through its flight testing so our customers can see for themselves this airplane’s excellent performance,” said Carriker.
Pictured here, ZA004 frames Mt. Rainier in Western Washington during a test flight earlier this year.

Boeing: News - Media Center - Image Gallery

Boeing Celebrates Premiere of New 747-8 Intercontinental - Feb 13, 2011

2011-02-14T10:10:00.000-08:00

EVERETT, Wash., Feb. 13, 2011 /PRNewswire/ -- Boeing (NYSE: BA) today unveiled its new 747-8 Intercontinental, the new high-capacity passenger airplane that offers airlines the lowest operating costs and best economics of any large passenger airplane while providing enhanced environmental performance.
Approximately 10,000 guests, including customers, Boeing employees, government officials, partners and suppliers, gathered in the factory in Everett, Wash., to witness the premiere of the Intercontinental at an event themed "Incredible, Again." Boeing Commercial Airplanes President and Chief Executive Officer Jim Albaugh said the newest 747 incorporates technological advancements that make it an extremely productive airplane for customers.

"The new 747-8 Intercontinental features the latest in innovative technologies — applying many of the breakthroughs also found on the 787 Dreamliner," said Albaugh. "We think our customers will value the low operating costs and passengers will enjoy the comfort of the striking new interior."
"The 747-8 Intercontinental will be a great complement to our fleet, fitting nicely into the 400-seat category, improving our fleet's eco-efficiency even further," said Nico Buchholz, executive vice president, Lufthansa Group Fleet Management. "As launch customer, we are looking forward to welcoming this new aircraft to our fleet next year as it adds to our ongoing fleet modernization and environmental efforts."
Korean Air and VIP customers have joined launch customer Lufthansa in ordering a total of 33 747-8 Intercontinentals. First delivery of the 747-8 Intercontinental is scheduled for the fourth quarter.
"As the only airplane in the 400 to 500-seat market, the 747-8 Intercontinental will give operators an airplane perfectly suited for long, heavily traveled routes around the world," said Pat Shanahan, vice president and general manager, Airplane Programs, Boeing Commercial Airplanes. "The new 747-8 Intercontinental will set a new standard in economic and environmental performance, while providing a world-class passenger experience."

The 747-8 Intercontinental will have the lowest seat-mile cost of any large commercial jetliner, with 12 percent lower costs than its predecessor, the 747-400. The airplane provides 16 percent better fuel economy, 16 percent less carbon emissions per passenger and generates a 30 percent smaller noise footprint than the 747-400. The 747-8 Intercontinental applies interior features from the 787 Dreamliner that includes a new curved, upswept architecture giving passengers a greater feeling of space and comfort, while adding more room for personal belongings.
The airplane unveiled today is painted in a new Sunrise livery of red-orange that only will appear on the first 747-8 Intercontinental and is a significant departure from Boeing's standard blue. The new color palette honors many key Boeing customers whose cultures recognize these colors as symbols of prosperity and good luck.

Boeing Celebrates Premiere of New 747-8 Intercontinental - Feb 13, 2011

Boeing: News Releases

2011-02-02T13:34:00.000-08:00

SEATTLE, Feb. 1, 2011 – Boeing [NYSE: BA], Air France Industries KLM Engineering & Maintenance and Air New Zealand today said an agreement has been signed to expand the airline’s use of the 777 Component Services Program (CSP), offered jointly by Boeing and Air France Industries KLM Engineering and Maintenance.

After gaining experience with the CSP on its 777-200ER (extended range) fleet, Air New Zealand is expanding the support for common parts to cover its fleet of 777-300ERs. These parts will be added to the existing 777 CSP agreement. The airline accepted the first of its five 777-300ERs in December 2010.

The program allows airlines to outsource the cost and logistical challenge of keeping important parts on hand. It significantly reduces the airline's up-front investment in spare parts and offers a reliable supply of critical parts. They also benefit by receiving a working component more quickly, rather than having to wait for a completed repair that could ground an airplane.

“For the past four years the 777 Component Services Program has operationally been highly successful on our 777-200ER fleet, so it is natural to expand it to include our new 777-300ERs,” said Vanessa Stoddart, group general manager, Technical Operations and People, Air New Zealand. “The -300ER’s longer range make the need for this component availability even more critical.”

"Air New Zealand, with its unique location and route structure, requires a great airplane operating at the top of its performance capability," said Dale Wilkinson, vice president of Material Services for Commercial Aviation Services, Boeing Commercial Airplanes. “The 777 Component Services Program will help provide that edge.”

“Air New Zealand has chosen a program that has demonstrated its relevance to customer expectations. Since it’s been launched, the 777 CSP is indeed the favorite program for 777 operators,” said Robert Anton, senior vice president, Components Services, Air France Industries.

Thirteen 777 customer airlines participate in the CSP, with a total of 135 aircraft currently operating under the program.

The 777 CSP program is offered jointly by Boeing and AFI KLM E&M, who also offer a similar program for Next-Generation 737 models.

Boeing: News Releases

Boeing: Boeing and iRobot Team Delivers 1st SUGVs to US Air Force

2011-02-02T13:32:00.000-08:00

HUNTSVILLE, Ala., Jan. 31, 2011 -- The Boeing Company [NYSE: BA] and partner iRobot Corp. [NASDAQ: IRBT] today announced that they have delivered the first 30 Small Unmanned Ground Vehicles (SUGV) under a contract with the U.S. Air Force for the service's Explosive Ordnance Disposal (EOD) team. This is the first task order of an indefinite delivery, indefinite quantity contract which runs through September 2012.
"We are pleased to work with iRobot to enable Air Force EOD technicians to perform reconnaissance while reducing their exposure to unexploded ordnance," said Mike Huddleston, Robotics program manager for Boeing Network & Tactical Systems.
"Unmanned ground vehicles have been saving lives for years on asymmetric battlefields," said Robert Moses, president of iRobot's Government and Industrial Robots division. "SUGV represents an important advancement in UGV technology because of its light weight and state-of-the-art capabilities. It gives warfighters the ability to deploy the robot at a moment's notice when faced with a variety of dangerous missions."
Boeing and iRobot developed the SUGV family of vehicles under a strategic alliance that began in 2007. The robot is designed to give warfighters real-time awareness of critical situations and allow them to complete missions from safe standoff distances. SUGV is ideal for a variety of mission types, including EOD, route clearance and reconnaissance. As the prime contractor, Boeing provides program management, contracts, and quality-control support from offices in Huntsville. iRobot is responsible for engineering, design, manufacturing, training and logistics services, with the majority of work conducted in Bedford, Mass.
iRobot designs and builds robots that make a difference. The company's home robots help people with smarter ways to clean, and its government and industrial robots protect those in harm’s way. iRobot's consumer and military robots feature iRobot Aware® robot intelligence systems, proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence. For more information about iRobot, visit www.irobot.com.
Boeing is the largest aerospace company in Alabama and one of the state's largest employers. Current company operations in Huntsville include the Ground-based Midcourse Defense program and other missile defense work, such as the Arrow system and the Patriot Advanced Capability-3 seeker, as well as work associated with Ares I, the International Space Station, Army Integrated Logistics, Brigade Combat Team Modernization and engineering for the 787 and the P-8A Poseidon.
A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 66,000 employees worldwide.
Boeing: Boeing and iRobot Team Delivers 1st SUGVs to US Air Force

Boeing, Comair Limited Announce Next-Generation 737 Order - Feb 2, 2011

2011-02-02T13:31:00.000-08:00

JOHANNESBURG, Feb. 2, 2011 /PRNewswire/ -- Boeing (NYSE: BA) and Comair Limited today announced an order for eight Next-Generation 737-800s complete with the innovative new Boeing Sky Interior. Comair will use its new 737s to update the fleet of Comair's low-fare airline, kulula.com. The airplanes are valued at approximately $646 million at current list prices. The order previously was attributed to an unidentified customer on Boeing's orders and deliveries website.

Launched in 2001 as South Africa's first low-fare carrier, kulula.com currently operates an all-Boeing fleet of ten 737s, including three leased 737-800s. Comair also operates as a franchise partner of British Airways, with thirteen 737 airplanes flying domestically in South Africa and regionally in Southern Africa.

"The purchase of new Boeing 737-800s is historic for our company and gives all our 1,800 staff a great feeling of pride," said Gidon Novick, joint CEO of Comair Ltd. "The new fleet is an essential part of our efficiency drive, which will not only give us a cost leadership position in our industry, but also provide our customers with exceptional levels of reliability and comfort with the spacious new interior."

In addition to its 737-800 order, Comair is purchasing the Maintenance Performance Toolbox from Boeing Commercial Aviation Services. The Maintenance Performance Toolbox improves an airline's fleet efficiency by integrating manufacturer and customer documentation, use of intelligent graphics, cross-document searching and linking aircraft fault data to specific maintenance actions. It also provides a comprehensive structural repair history for each airplane while reducing the time needed to find tail-specific technical information in time-critical situations, such as line maintenance troubleshooting and dispatch.

"Comair is an amazing success story, as this airline company has posted operating profits each year since it was founded in 1946," said Marlin Dailey, vice president of Sales and Marketing for Boeing Commercial Airplanes. "Today's order demonstrates the value the 737-800 has already brought to its fleet and the confidence Comair has in this airplane."

Today's operators fly 737s that are 5 percent more fuel-efficient than the first Next-Generation 737s delivered in 1998, and another 2 percent improvement is on the way. Boeing's performance improvement package, now being certified, will boost Comair's fuel efficiency a further 2 percent through aerodynamic and engine changes.

Among the airlines that recently transported thousands of fans and football players throughout South Africa for the World Cup, Comair operates nearly 800 flights each week on its South African and regional routes.

Boeing, Comair Limited Announce Next-Generation 737 Order - Feb 2, 2011

Boeing and Northrop Grumman Submit Proposal for Missile Defense Competitive Contract

2011-01-28T12:43:00.000-08:00

HUNTSVILLE, Ala., Jan. 28, 2011 -- The Boeing Company [NYSE: BA] and industry partner Northrop Grumman Corporation [NYSE: NOC] today submitted their joint proposal for the competitive development and sustainment contract for future work on the Ground-based Midcourse Defense (GMD) element of the United States' ballistic missile defense system.

"This development and sustainment contract proposal is backed by the full commitment of Boeing, Northrop Grumman and all of our team members," said Dennis Muilenburg, president and CEO, Boeing Defense, Space & Security. "We have been privileged to have been partners with the Missile Defense Agency through the development and deployment of the GMD system, and now with Northrop Grumman, we will bring to GMD over 50 years of experience in sustaining and modernizing the Minuteman ICBM weapon system. We look forward to continuing that partnership in this next phase of the GMD program."

The Boeing-Northrop Grumman GMD proposal submitted to the Missile Defense Agency brings together a broad industry group, selected for extensive heritage GMD capability and relevant expertise, to deliver the best offering for the future of the program. The team has worked for the past year to prepare the expansive proposal, which includes an overview of past performance and outlines future program support.

"With over half a century of experience and success on the nation's ICBM system, Northrop Grumman continues to demonstrate its unmatched capabilities in developing, managing and integrating the complex and mission-critical systems that defend our country and its allies," said Wes Bush, president and CEO, Northrop Grumman. "Our partnership with Boeing on this GMD proposal brings together the very best minds in the industry to help the nation improve its defenses against a threat that affords no margin for error."

Boeing will lead the industry team in the development, deployment, integration and testing of the GMD weapon system, building on its experience of supporting the Missile Defense Agency as prime contractor for the GMD program since 2001. Following a presidential directive in 2002, Boeing led a team of more than 300 suppliers and delivered a limited operational GMD capability in just two and a half years. The Boeing-led team currently operates and sustains the deployed weapon system while actively developing and testing innovative technologies to provide increased reliability and meet evolving customer needs and requirements.

"GMD remains the nation's only defense against long-range ballistic missile threats and as we look to GMD's future, our proposal is focused on supporting the program’s current capability while offering innovative solutions for future program evolution at the lowest cost to the customer," said Norm Tew, Boeing vice president and program director of GMD. "Only the Boeing-Northrop Grumman team has the unmatched GMD experience to bring the best value to the customer, without sacrificing operational readiness and future performance capabilities. This knowledge base enables us to offer the U.S. government substantial cost savings with minimal risk."

Northrop Grumman has been part of the Boeing Ground-based Midcourse Defense team since 1998, responsible for designing and deploying the command-and-control systems that form the backbone of the ground system. As Boeing's strategic partner for GMD's future work, Northrop Grumman offers more than 50 years of experience in the development and sustainment of the ICBM system.

An integral element of the Global Ballistic Missile Defense System, GMD uses radars, other sensors, command-and-control facilities, communications terminals and a 20,000-mile fiber optic communications network. There are more than 20 operational interceptors at Vandenberg Air Force Base, Calif., and at Fort Greely, Alaska, to defend the United States against long-range ballistic missile threats.

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

Boeing is the largest aerospace company in Alabama and one of the state's largest employers. Current company operations in Huntsville include the Ground-based Midcourse Defense program and other missile defense work, such as the Arrow system and the Patriot Advanced Capability-3 seeker, as well as work associated with Ares I, the International Space Station, Army Integrated Logistics, Brigade Combat Team Modernization, and engineering for the 787 and the P-8A Poseidon.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 66,000 employees worldwide.
Boeing and Northrop Grumman Submit Proposal for Missile Defense Competitive Contract

Boeing, Ethiopian Airlines, Seattle Anesthesia Outreach Partner for Relief Flight - Jan 27, 2011

2011-01-28T12:42:00.000-08:00

SEATTLE, Jan. 27, 2011 /PRNewswire/ -- For the second time in less than two months, Boeing (NYSE: BA), Ethiopian Airlines and Seattle Anesthesia Outreach (SAO) have partnered to deliver medical equipment to Black Lion Hospital, Ethiopia's largest hospital. The first consignment was delivered in December 2010.

Approximately 2,700 pounds (1.2 metric tons) of medical supplies were loaded into the cargo hold of a new Boeing 777-200LR (longer range) delivered to Ethiopian Airlines on Jan. 26. Some of the supplies, such as electrical converters and other power items, supplement the anesthesia equipment transported in December.

"Through collaborative efforts such as this, Boeing is able to help bring relief to people around the world. Black Lion Hospital provides free medical care to the poor and this equipment will improve capabilities there," said Liz Warman, director of Boeing Global Corporate Citizenship for the Northwest region.

The supplies will prove vital when a group of 28 Seattle doctors, nurses and technicians travel to Ethiopia next month as part of ongoing humanitarian support to that region.

Since 1992, Boeing and airline partners as well as non-profit partners in the Humanitarian Delivery Flights (HDF) program have collaborated on many humanitarian missions.

Ethiopian Airlines is committed to support worthy social activities, which are designed to help build sustainable livelihoods for individuals and the community.

Boeing, Ethiopian Airlines, Seattle Anesthesia Outreach Partner for Relief Flight - Jan 27, 2011

Boeing Expands Training Capability in Europe

2011-01-28T12:41:00.002-08:00

SEATTLE, Jan. 27, 2011 /PRNewswire/ -- Boeing (NYSE: BA) Training & Flight Services has signed a long-term agreement with Blue1 to provide 717 training capabilities in Stockholm, Sweden, beginning the first quarter of 2011. Blue1 is a Scandinavian Airlines' subsidiary based in Helsinki, Finland.

"Enhancing safe and efficient flight operations, with cost-effective solutions implemented closer to our customer's home bases is our main priority," said Roei Ganzarski, chief customer officer, Boeing Training & Flight Services. "Through this partnership with Blue1, we are bringing our 717 training programs closer to our customers."

Blue1 operates five Boeing 717s with an additional four scheduled to enter its fleet by the end of March 2011. "As we transitioned to the 717, it became increasingly clear that we would benefit from a regional 717 training solution," said Mr. Heikki Setala, head of Flight Operations, Blue1. "Boeing, as the original manufacturer of our airplanes, was wholly supportive of our needs and provided an overall cost-reducing solution."

The European Aviation Safety Agency-certified 717 full-flight simulator will be relocated from Boeing's Atlanta campus to a training center in Stockholm. Boeing will continue to support its customers with 717 solutions in North America and Asia Pacific.

Under the terms of the agreement, Boeing continues to hold the exclusive license to market the Stockholm-based 717 training capacity to third parties.

Boeing Training & Flight Services offers comprehensive training solutions worldwide through its global network of campuses and other locations that best serve its customers' needs.

The Boeing 717 is a proven and reliable 100-seat jetliner, with more than 125 in active service with airlines today.

Boeing Expands Training Capability in Europe

Boeing: Boeing Tests New Ka-band SATCOM Antenna System

2011-01-28T12:41:00.001-08:00

KENT, Wash., Jan. 27, 2011 -- Boeing [NYSE: BA] announced today that it successfully conducted its first over-the-air ground test of a Ka-band satellite communications (SATCOM) phased-array antenna system that will enable wideband SATCOM on aircraft, providing increased bandwidth for networking in flight.

This third-generation antenna system gives commercial and military aircraft operators worldwide the ability to offer communications using the growing fleet of commercial K- and Ka-band satellites. The low-profile antenna is also an option for government operators using military satellites such as the Wideband Global SATCOM (WGS) system. The active phased array system uses electronically controlled beams to transmit and receive signals from a designated satellite.

The test demonstrated the new system’s ability to support a range of applications, including file transfer and a Voice over Internet Protocol videoconference.

“This Ka-band phased-array antenna system supports a significant increase in bandwidth with a smaller antenna than previous Ku-band antennas, while still providing the same low profile, low drag, and lower cost of installation,” said Charles Toups, vice president and general manager, Boeing Network and Tactical Systems (N&TS). “Boeing is continuing to invest in secure data-communication technologies that will improve our customers’ ability to remain networked while mobile.”

Boeing has more than 15 years of experience designing phased array antenna systems flying on commercial and military aircraft. Boeing developed the antenna as a joint effort between N&TS, part of Boeing Defense, Space & Security, and Boeing Research & Technology, a division of Boeing Engineering, Operations & Technology.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 66,000 employees worldwide.
Boeing: Boeing Tests New Ka-band SATCOM Antenna System

Boeing: Boeing, Netherlands MOD Mark 1st Flight of Royal Netherlands Air Force CH-47F (NL) Chinook

2011-01-28T12:41:00.000-08:00

Ridley Township, Pa., Jan. 26, 2011 -- Representatives of Boeing [NYSE: BA], its suppliers and the Netherlands Ministry of Defence marked the first flight of the Royal Netherlands Air Force (RNLAF) CH-47F (NL) Chinook heavy-lift helicopter in a ceremony Jan. 25 at Summit Aviation in Middletown, Del.

The aircraft made its first flight on Dec. 8 and is scheduled to complete its flight test program in August after approximately 100 flight hours. There are two aircraft in flight test.

The RNLAF has ordered six CH-47F (NL) Chinooks to enhance its current fleet of 11 CH-47D (NL) aircraft. The new Chinooks are equipped with survivability equipment, a forward-looking infrared system, and fast rope positions, which will be used to support Special Forces operations. The engines will include air particle separators for operation in harsh environments. These additions will make the RNLAF CH-47F a versatile, multi-role aircraft for worldwide operations.

Boeing expects to begin delivering the aircraft later this year, making the RNLAF the first international customer to field the new CH-47F.

The flight tests have included assessments of the advanced operational capabilities enabled by the aircraft’s Avionics Control and Management System cockpit and newly integrated Digital Automatic Flight Control System. By the conclusion of the tests, the aircraft will be certified airworthy by the Netherlands Military Aviation Authority.

“The Chinook has over the years proven itself to be a true workhorse for the Netherlands Air Force,” said Air Commodore Theo ten Haaf, Commanding Officer Defence Helicopter Command of the RNLAF. “The aircraft proved to be 'the right tool’ for a difficult and challenging job, especially in austere environments and during the combined air and ground operations in Afghanistan. Both ground troops and aircrew speak highly of it.”

He added, “The CH-47F is a major improvement over the 47D model. The arrival of these new aircraft in the RNLAF will ensure that the RNLAF continues to operate with the best in the field of tactical transport helicopter operations both now and in the future.”

“Our goal is to use available technology to provide customers with the best solutions while enabling long-term sustainability,” said Leanne Caret, H-47 Programs vice president for Boeing. “We have a long-standing relationship with the Netherlands and this new aircraft is another example of our focus on providing advanced solutions to meet our customers’ growing demands.”

The Netherlands MOD and Boeing also are evaluating a potential upgrade of the current CH-47D (NL) Chinook fleet to the new CH-47F (NL) configuration.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 66,000 employees worldwide.
Boeing: Boeing, Netherlands MOD Mark 1st Flight of Royal Netherlands Air Force CH-47F (NL) Chinook

Boeing Reports Fourth-Quarter 2010 Results and 2011 Guidance - Jan 26, 2011

2011-01-28T12:40:00.000-08:00

CHICAGO, Jan. 26, 2011 /PRNewswire-FirstCall/ --

Fourth-Quarter 2010

Earnings per share of $1.56, including favorable tax settlement, on revenue of $16.6 billion
Operating cash flow of $1.1 billion reflects strong operating performance

Full Year 2010

Earnings per share of $4.45 on revenue of $64.3 billion
Operating cash flow of $3.0 billion and cash and marketable securities of $10.5 billion provide strong liquidity
Backlog grew to $321 billion including $69 billion of new orders during the year

Outlook

2011 EPS guidance of between $3.80 and $4.00 reflects solid core performance, higher pension expense and the recently revised 787 schedule

Table 1. Summary Financial Results
	Fourth Quarter			Full Year
(Dollars in Millions, except per share data)	2010	2009	Change	2010	2009	Change

Revenues	$16,550	$17,937	(8%)	$64,306	$68,281	(6%)
Earnings From Operations	$1,103	$1,693	(35%)	$4,971	$2,096	137%
Operating Margin	6.7%	9.4%	(2.7)Pts	7.7%	3.1%	4.6 Pts
Net Income	$1,164	$1,268	(8%)	$3,307	$1,312	152%
Earnings per Share	$1.56	$1.75	(11%)	$4.45	$1.84	142%
Operating Cash Flow	$1,116	$3,212	(65%)	$2,952	$5,603	(47%)

The Boeing Company (NYSE: BA) reported fourth-quarter net income of $1.2 billion, or $1.56 per share, on revenue of $16.6 billion. The results reflect solid performance across the company's core programs, a favorable tax settlement (+$0.50 per share), and a special one-time contribution to Boeing's charitable trust (-$0.05 per share) (Table 1).

Net income for the full year was $3.3 billion, or $4.45 per share, on revenue of $64.3 billion, which included the $0.45 per share net impact of the favorable tax settlement and the charitable trust contribution. First-quarter 2010 included a $0.20 per share tax charge on health care legislation. Earnings per share for 2009 of $1.84 included a combined $3.58 per share impact due to the 787 R&D reclassification and 747 charges.

Earnings guidance for 2011 has been established at between $3.80 and $4.00 per share reflecting solid core performance, higher pension expense, the revised 787 schedule and the current defense contracting environment.

"Boeing delivered strong operating performance and exceptional cash generation from core production and services businesses in 2010, which helped mitigate the impact of development program challenges," said Jim McNerney, Boeing chairman, president and chief executive officer. "We're entering 2011 well-positioned for growth, with a large order book, increasing global demand for commercial airplanes, greater clarity around our domestic defense outlook, and significant international defense sales opportunities. Our focus for the year is to deliver the 787 and 747-8; manage disciplined increases in commercial airplane production rates and drive improved competitiveness and financial performance throughout the business."

Boeing's quarterly operating cash flow was $1.1 billion, reflecting strong operating performance while continuing to invest in development programs. For the full year, operating cash flow was $3.0 billion. Free cash flow* was $0.7 billion in the quarter and $1.8 billion for the year (Table 2).

Table 2. Cash Flow
	Fourth Quarter		Full Year
(Millions)	2010	2009	2010	2009

Operating Cash Flow	$1,116	$3,212	$2,952	$5,603
Less Additions to Property, Plant & Equipment	($400)	($221)	($1,125)	($1,186)
Free Cash Flow*	$716	$2,991	$1,827	$4,417
* Non-GAAP measure. A complete definition and reconciliation of Boeing's use of non-GAAP measures, identified by an asterisk (*), is found on page 8, "Non-GAAP Measure Disclosure."

Cash and investments in marketable securities totaled $10.5 billion at year-end (Table 3), up 5 percent in the quarter. Debt was essentially unchanged in the quarter, and the company did not acquire any of its shares.

Table 3. Cash, Marketable Securities and Debt Balances
	Quarter-End
(Billions)	4Q10	3Q10
Cash	$5.4	$2.9
Marketable Securities(1)	$5.1	$7.1
Total	$10.5	$10.0

Debt Balances:
The Boeing Company	$9.0	$8.9
Boeing Capital Corporation	$3.4	$3.5
Total Consolidated Debt	$12.4	$12.4
1 Marketable securities consists primarily of time deposits due within one year classified as "short-term investments."

Total company backlog at year-end was $321 billion, unchanged from the prior quarter and up 2 percent from the prior year.

Segment Results

Commercial Airplanes

Boeing Commercial Airplanes fourth-quarter revenue decreased by 11 percent to $8.2 billion on lower expected 777 and 747 airplane deliveries. Operating margin was 7.7 percent, reflecting the lower deliveries and higher R&D and other period costs (Table 4).

For the full year, revenue decreased by 7 percent to $31.8 billion on the lower expected 777 and 747 airplane deliveries. Commercial Airplanes operating earnings were $3.0 billion on higher planned R&D spending. The prior-year results were impacted by the reclassification of 787 R&D costs of $2.7 billion and 747 charges totaling $1.4 billion.

Commercial Airplanes booked 180 gross orders during the quarter while 22 orders were removed from its order book. This contrasts with the year-ago period when net orders were 62 airplanes. For the full year, net orders were 530 airplanes. Contractual backlog remains strong with 3,443 airplanes valued at $256 billion.

Table 4. Commercial Airplanes Operating Results
	Fourth Quarter			Full Year
(Dollars in Millions)	2010	2009	Change	2010	2009	Change

Commercial Airplanes Deliveries	116	122	(5%)	462	481	(4%)

Revenues	$8,184	$9,183	(11%)	$31,834	$34,051	(7%)
Earnings/(Loss) from Operations	$627	$1,020	(39%)	$3,006	($583)	NA

Operating Margins	7.7%	11.1%	(3.4)Pts	9.4%	(1.7%)	NA

The 787 program experienced an in-flight electrical incident on a test flight in November. As disclosed last week, first delivery is now expected in the third quarter of 2011 and includes the time required to produce, install and test updated software and new electrical power distribution panels in the flight test and production airplanes. Total firm orders for the 787 at year-end were 847 airplanes from 57 customers.

Flight testing of the 747-8 Freighter progressed during the quarter, and the first two Intercontinental passenger models had electrical power successfully turned on. Delivery of the first 747-8 Freighter is planned for mid-2011.

Boeing Defense, Space & Security

Boeing Defense, Space & Security's fourth-quarter revenue declined 4 percent to $8.2 billion on lower revenue in Boeing Military Aircraft (BMA) and Global Services & Support (GS&S). Operating margin was 10.0 percent reflecting improved margins in Network & Space Systems (N&SS) (Table 5).

For the full year, revenue decreased by 5 percent to $31.9 billion on expected lower volume in N&SS. Operating earnings decreased by $0.4 billion to $2.9 billion, producing operating margins of 9.0 percent on lower margins in BMA.

Table 5. Defense, Space & Security Operating Results
	Fourth Quarter			Full Year
(Dollars in Millions)	2010	2009	Change	2010	2009	Change

Revenues
Boeing Military Aircraft	$3,627	$3,805	(5%)	$14,238	$14,304	(0%)
Network & Space Systems	$2,434	$2,385	2%	$9,455	$10,877	(13%)
Global Services & Support	$2,104	$2,357	(11%)	$8,250	$8,480	(3%)
Total BDS Revenues	$8,165	$8,547	(4%)	$31,943	$33,661	(5%)

Earnings from Operations
Boeing Military Aircraft	$323	$363	(11%)	$1,258	$1,528	(18%)
Network & Space Systems	$218	$141	55%	$711	$839	(15%)
Global Services & Support	$275	$325	(15%)	$906	$932	(3%)
Total BDS Earnings from Operations	$816	$829	(2%)	$2,875	$3,299	(13%)

Operating Margins	10.0%	9.7%	0.3 Pts	9.0%	9.8%	(0.8)Pts

BMA fourth-quarter revenue decreased by $0.2 billion to $3.6 billion, due to fewer deliveries and less favorable mix. Operating margin was 8.9 percent, reflecting strong execution across its programs, offset by higher costs on the Airborne Early Warning & Control program, which reduced BMA margins by 3.8 points. During the quarter, BMA delivered 29 aircraft, and the U.S. Naval Air Systems Command awarded it an A160T Hummingbird unmanned vehicle contract.

N&SS fourth-quarter revenue was essentially unchanged at $2.4 billion. Operating margin grew to 9.0 percent on improved performance in Space and Intelligence Systems. During the quarter, the Mexican government signed a contract for three geomobile satellites and the X-37B Orbital Test Vehicle completed its first flight.

GS&S revenue decreased by $0.3 billion to $2.1 billion in the quarter due to lower volume in maintenance, modifications and upgrades and integrated logistics. Operating margin was 13.1 percent, driven by strong performance across its portfolio. During the quarter, the company was awarded a contract for the development of the Future Logistic Information Services from the U.K. Ministry of Defense and a contract for KC-135 Fleet Support from the U.S. Air Force.

Backlog at Defense, Space & Security is $65.2 billion, approximately two times the unit's expected 2011 revenue. Backlog increased slightly as compared to 2009.

Boeing Capital Corporation

Boeing Capital Corporation (BCC) reported fourth-quarter pre-tax earnings of $6 million compared to $14 million in the same period last year (Table 6). For the full year, pre-tax earnings were $152 million, up from $126 million last year. During the quarter, BCC's portfolio balance declined to $4.7 billion, down from $5.7 billion at the beginning of the year and $5.0 billion at the end of third quarter, on run-off, pre-payments and asset sales. BCC's debt-to-equity ratio was unchanged at 5.0-to-1.

Table 6. Boeing Capital Corporation Operating Results
	Fourth Quarter			Full Year
(Dollars in Millions)	2010	2009	Change	2010	2009	Change

Revenues	$145	$164	(12%)	$639	$660	(3%)

Earnings from Operations	$6	$14	(57%)	$152	$126	21%

Additional Information

The "Other" segment consists primarily of Boeing Engineering, Operations and Technology, as well as certain results related to the financial consolidation of all business units. Other segment expense was $73 million in the fourth quarter, up from $47 million in the same period last year.

Total pension expense for the fourth quarter was $254 million, as compared to $223 million in the same period last year. A total of $244 million was recognized in the operating segments in the quarter (down from $264 million in the same period last year), and $10 million was recognized in unallocated items.

Unallocated expense was $273 million, up from the $123 million reported in the same period last year, driven by a $55 million charitable trust contribution and higher unallocated pension expense. The company's pension plans were 83 percent funded at year end (5.3 percent discount rate and 12.7 percent actual asset return).

Other income for the quarter was $32 million, as compared to an expense of $33 million in the same period last year. Interest expense for the quarter was $132 million, up from $110 million in the same period last year.

The company's income tax benefit of $163 million in the quarter (compared to an expense of $267 million in the same period last year) included a $371 million non-cash gain due to an IRS settlement for 1998 through 2003 tax years and a benefit of $154 million due to the extension of the R&D credit for the 2010 tax year that was signed into law in December.

Outlook

The company's 2011 financial guidance (Table 7) reflects solid core operating performance, higher pension expense, the recently revised 787 schedule and the current defense contracting environment.

Boeing's 2011 revenue guidance is between $68 and $71 billion and reflects the initial 787 and 747-8 deliveries. Earnings guidance for 2011 is established at between $3.80 and $4.00 per share. Total pension expense in 2011 is expected to be $1.8 billion or $1.58 per share, an increase of $0.58 per share from 2010. Operating cash flow is expected to be greater than $2.5 billion in 2011, including $0.5 billion of discretionary pension contributions.

Commercial Airplanes' 2011 deliveries guidance is expected to be between 485 and 500 airplanes and is sold out. It includes the first 787 and 747-8 deliveries (combined 25 to 40 units), which are expected to begin in the third quarter of 2011 and mid-2011, respectively. Commercial Airplanes' 2011 revenue is expected to be between $36 and $38 billion with operating margins between 7.5 and 8.5 percent.

Defense, Space & Security's revenue for 2011 is expected to be between $31.5 and $33 billion with operating margins between 8.5 and 9 percent.

Boeing Capital Corporation expects that its aircraft finance portfolio will continue to reduce in 2011, as new aircraft financing of less than $0.5 billion is expected to be lower than normal portfolio runoff through customer payments and depreciation.

Boeing's 2011 R&D forecast is between $3.7 and $3.9 billion. Capital expenditures for 2011 are expected to be approximately $2.3 billion.

Table 7. Financial Outlook (Dollars in Billions, except per-share data)	2011

The Boeing Company
Revenue	$68 - 71
Earnings Per Share (GAAP)	$3.80 - 4.00
Operating Cash Flow (1)	> $2.5

Boeing Commercial Airplanes
Deliveries	485 - 500
Revenue	$36 - 38
Operating Margin	7.5% - 8.5%

Boeing Defense, Space & Security
Revenue
Boeing Military Aircraft	$14.2 - 14.7
Network & Space Systems	$9 - 9.5
Global Services & Support	$8.3 - 8.8
Total BDS Revenue	$31.5 - 33

Operating Margin
Boeing Military Aircraft	~ 9%
Network & Space Systems	~ 7%
Global Services & Support	~ 10.5%
Total BDS Operating Margin	8.5% - 9%

Boeing Capital Corporation
Portfolio Size	Lower
Revenue	~ $0.5
Return on Assets	> 1%

Research & Development	$3.7 - 3.9
Capital Expenditures	~ $2.3
1 After cash pension contributions of $0.5 billion and assuming new aircraft financings under $0.5 billion.

Non-GAAP Measure Disclosure

Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by an asterisk *) used in this report provide investors with important perspectives into the company's ongoing business performance. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. The following definitions are provided:

Free Cash Flow

Free cash flow is defined as GAAP operating cash flow less capital expenditures for property, plant and equipment additions. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow internally to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.

Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our guidance relating to 2011 financial and operating performance, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial customers, our suppliers and the worldwide market; (3) our commercial development programs, including the 787 and 747-8 commercial aircraft programs; (4) changing acquisition priorities of the U.S. government; (5) our dependence on U.S. government contracts; (6) our reliance on fixed-price contracts; (7) our reliance on cost-type contracts; (8) uncertainties concerning contracts that include in-orbit incentive payments; (9) changes in accounting estimates; (10) our ability to develop new technologies; (11) significant changes in discount rates and actual investment return on pension assets; (12) our ability to attract, retain and develop qualified personnel; (13) work stoppages or other labor disruptions; (14) changes in the competitive landscape in our markets; (15) our non-U.S. operations, including sales to non-U.S. customers; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in Boeing Capital Corporation's customer financing portfolio; (18) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions related to physical security threats, information technology attacks or natural disasters; and (22) potential environmental liabilities.

Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update any forward-looking statement, except as required by law.

Contact:

Investor Relations: Scott Fitterer or Jennifer Mack (312) 544-2140

Communications: Chaz Bickers (312) 544-2002

The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
	Twelve months ended		Three months ended
	December 31		December 31
(Dollars in millions, except per share data)	2010	2009	2010	2009
Sales of products	$52,586	$57,032	$13,569	$14,934
Sales of services	11,720	11,249	2,981	3,003
Total revenues	64,306	68,281	16,550	17,937

Cost of products	(42,194)	(47,639)	(11,025)	(12,207)
Cost of services	(9,489)	(8,726)	(2,352)	(2,258)
Boeing Capital Corporation interest expense	(160)	(175)	(36)	(43)
Total costs and expenses	(51,843)	(56,540)	(13,413)	(14,508)
	12,463	11,741	3,137	3,429
Income from operating investments, net	267	249	80	63
General and administrative expense	(3,644)	(3,364)	(977)	(780)
Research and development expense, net	(4,121)	(6,506)	(1,134)	(1,002)
Gain/(loss) on dispositions, net	6	(24)	(3)	(17)
Earnings from operations	4,971	2,096	1,103	1,693
Other income/(expense), net	52	(26)	32	(33)
Interest and debt expense	(516)	(339)	(132)	(110)
Earnings before income taxes	4,507	1,731	1,003	1,550
Income tax (expense)/benefit	(1,196)	(396)	163	(267)
Net earnings from continuing operations	3,311	1,335	1,166	1,283
Net loss on disposal of discontinued operations, net of taxes of
$2, $13, $1 and $8	(4)	(23)	(2)	(15)
Net earnings	$3,307	$1,312	$1,164	$1,268

Basic earnings per share from continuing operations	$4.50	$1.89	$1.57	$1.79
Net loss on disposal of discontinued operations, net of taxes	(0.01)	(0.03)		(0.02)
Basic earnings per share	$4.49	$1.86	$1.57	$1.77

Diluted earnings per share from continuing operations	$4.46	$1.87	$1.56	$1.77
Net loss on disposal of discontinued operations, net of taxes	(0.01)	(0.03)		(0.02)
Diluted earnings per share	$4.45	$1.84	$1.56	$1.75
Cash dividends paid per share	$1.68	$1.68	$0.42	$0.42
Weighted average diluted shares (millions)	744.3	713.4	747.0	723.9

The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)

	December 31	December 31
(Dollars in millions, except per share data)	2010	2009
Assets
Cash and cash equivalents	$ 5,359	$ 9,215
Short-term and other investments	5,158	2,008
Accounts receivable, net	5,422	5,785
Current portion of customer financing, net	285	368
Deferred income taxes	31	966
Inventories, net of advances and progress billings	24,317	16,933
Total current assets	40,572	35,275
Customer financing, net	4,395	5,466
Property, plant and equipment, net of accumulated depreciation of $13,322 and $12,795	8,931	8,784
Goodwill	4,937	4,319
Other acquired intangibles, net	2,979	2,877
Deferred income taxes	4,031	3,062
Investments	1,111	1,030
Pension plan assets, net	6	16
Other assets, net of accumulated amortization of $630 and $492	1,603	1,224
Total assets	$ 68,565	$ 62,053
Liabilities and equity
Accounts payable	$ 7,715	$ 7,096
Other accrued liabilities	13,802	12,822
Advances and billings in excess of related costs	12,323	12,076
Deferred income taxes and income taxes payable	607	182
Short-term debt and current portion of long-term debt	948	707
Total current liabilities	35,395	32,883
Accrued retiree health care	8,025	7,049
Accrued pension plan liability, net	9,800	6,315
Non-current income taxes payable	418	827
Other long-term liabilities	592	537
Long-term debt	11,473	12,217
Shareholders' equity:
Common stock, par value $5.00 – 1,200,000,000 shares authorized; 1,012,261,159 shares issued	5,061	5,061
Additional paid-in capital	3,866	3,724
Treasury stock, at cost – 277,002,059 and 256,406,709 shares	(17,187)	(15,911)
Retained earnings	24,784	22,746
Accumulated other comprehensive loss	(13,758)	(11,877)
ShareValue Trust – 0 and 29,563,324 shares		(1,615)
Total shareholders’ equity	2,766	2,128
Noncontrolling interest	96	97
Total equity	2,862	2,225
Total liabilities and equity	$ 68,565	$62,053

The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)

	Twelve months ended
	December 31
(Dollars in millions)	2010	2009
Cash flows - operating activities:
Net earnings	$ 3,307	$ 1,312
Adjustments to reconcile net earnings to net cash provided by operating activities:
Non-cash items –
Share-based plans expense	215	238
Depreciation	1,510	1,459
Amortization of other acquired intangibles	217	207
Amortization of debt discount/premium and issuance costs	19	12
Investment/asset impairment charges, net	174	151
Customer financing valuation provision	51	45
Loss on disposal of discontinued operations	6	36
(Gain)/loss on dispositions, net	(6)	24
Other charges and credits, net	512	214
Excess tax benefits from share-based payment arrangements	(19)	(5)
Changes in assets and liabilities –
Accounts receivable	8	(391)
Inventories, net of advances and progress billings	(7,387)	(1,525)
Accounts payable	313	1,141
Other accrued liabilities	668	1,327
Advances and billings in excess of related costs	238	(680)
Income taxes receivable, payable and deferred	822	607
Other long-term liabilities	328	(12)
Pension and other postretirement plans	1,335	1,140
Customer financing, net	717	104
Other	(76)	199
Net cash provided by operating activities	2,952	5,603
Cash flows - investing activities:
Property, plant and equipment additions	(1,125)	(1,186)
Property, plant and equipment reductions	63	27
Acquisitions, net of cash acquired	(932)	(639)
Contributions to investments	(15,548)	(2,629)
Proceeds from investments	12,425	1,041
Payments on Sea Launch guarantees		(448)
Reimbursement of Sea Launch guarantee payments	82	40
Receipt of economic development program funds	206
Purchase of distribution rights	(2)
Net cash used by investing activities	(4,831)	(3,794)
Cash flows - financing activities:
New borrowings	41	5,961
Debt repayments	(689)	(551)
Payments to non-controlling interests		(40)
Repayments of distribution rights financing	(137)
Stock options exercised, other	87	10
Excess tax benefits from share-based payment arrangements	19	5
Employee taxes on certain share-based payment arrangements	(30)	(21)
Common shares repurchased		(50)
Dividends paid	(1,253)	(1,220)
Net cash (used)/provided by financing activities	(1,962)	4,094
Effect of exchange rate changes on cash and cash equivalents	(15)	44
Net (decrease)/increase in cash and cash equivalents	(3,856)	5,947
Cash and cash equivalents at beginning of year	9,215	3,268
Cash and cash equivalents at end of period	$ 5,359	$ 9,215

The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)

	Twelve months ended		Three months ended
	December 31		December 31
(Dollars in millions)	2010	2009	2010	2009
Revenues:
Commercial Airplanes	$ 31,834	$ 34,051	$ 8,184	$ 9,183
Boeing Defense, Space & Security:
Boeing Military Aircraft	14,238	14,304	3,627	3,805
Network & Space Systems	9,455	10,877	2,434	2,385
Global Services & Support	8,250	8,480	2,104	2,357
Total Boeing Defense, Space & Security	31,943	33,661	8,165	8,547
Boeing Capital Corporation	639	660	145	164
Other segment	138	165	31	40
Unallocated items and eliminations	(248)	(256)	25	3
Total revenues	$ 64,306	$ 68,281	$ 16,550	$ 17,937

Earnings/(loss) from operations:
Commercial Airplanes	$ 3,006	$ (583)	$ 627	$ 1,020
Boeing Defense, Space & Security:
Boeing Military Aircraft	1,258	1,528	323	363
Network & Space Systems	711	839	218	141
Global Services & Support	906	932	275	325
Total Boeing Defense, Space & Security	2,875	3,299	816	829
Boeing Capital Corporation	152	126	6	14
Other segment	(327)	(152)	(73)	(47)
Unallocated items and eliminations	(735)	(594)	(273)	(123)
Earnings from operations	4,971	2,096	1,103	1,693
Other income/(expense), net	52	(26)	32	(33)
Interest and debt expense	(516)	(339)	(132)	(110)
Earnings before income taxes	4,507	1,731	1,003	1,550
Income tax (expense)/benefit	(1,196)	(396)	163	(267)
Net earnings from continuing operations	3,311	1,335	1,166	1,283
Net loss on disposal of discontinued operations, net of taxes of
$2, $13, $1 and $8	(4)	(23)	(2)	(15)
Net earnings	$ 3,307	$ 1,312	$ 1,164	$ 1,268

Research and development expense, net:
Commercial Airplanes	$ 2,975	$ 5,383	$ 873	$ 741
Boeing Defense, Space & Security:
Boeing Military Aircraft	589	582	130	115
Network & Space Systems	417	397	90	104
Global Services & Support	130	122	31	33
Total Boeing Defense, Space & Security	1,136	1,101	251	252
Other segment	10	22	10	9
Total research and development expense, net	$ 4,121	$ 6,506	$ 1,134	$ 1,002

Unallocated items and eliminations:
Share-based plans expense	$ (136)	$ (189)	$ (24)	$ (49)
Deferred compensation expense	(112)	(158)	(28)	(24)
Pension	54	110	(10)	41
Post-retirement	(59)	(93)	(23)	(32)
Capitalized interest	(54)	(53)	(13)	(11)
Other	(428)	(211)	(175)	(48)
Total	$ (735)	$ (594)	$ (273)	$ (123)

The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)

	Twelve months ended			Three months ended
Deliveries	December 31			December 31
Commercial Airplanes	2010	2009		2010		2009
737	376	372		95		92
747		8				2
767	12	13		3		3
777	74	88		18		25
Total	462	481		116		122

Boeing Defense, Space & Security
Boeing Military Aircraft
F/A-18 Models	50	49		11		13
F-15E Eagle	13	13		3		3
C-17 Globemaster	14	16		4		4
KC-767 Tanker	1	2		1		1
CH-47 Chinook	20	11		7		7
T-45TS Goshawk		7				1
AH-64 Apache	13	23		2		3
AEW&C	4			1

Network & Space Systems
Delta II	1	1		1		1
Delta IV	1	1
Commercial and Civil Satellites	3	3		1		1
Military Satellites	1	3


		December 31		September 30		December 31
Contractual backlog (Dollars in billions)		2010		2010		2009
Commercial Airplanes		$255.6		$255.2		$250.5
Boeing Defense, Space & Security:
Boeing Military Aircraft		25.1		25.7		26.4
Network & Space Systems		9.6		8.3		7.7
Global Services & Support		13.7		12.3		11.9
Total Boeing Defense, Space & Security		48.4		46.3		46.0
Total contractual backlog		$304.0		$301.5		$296.5
Unobligated backlog		$16.9		$19.4		$19.1
Total backlog		$320.9		$320.9		$315.6
Workforce		160,500	*	159,600	*	157,100

*Note: Workforce data vary from those reported in 2009 and earlier. The new totals include all subsidiaries, some of which were excluded in prior years.

Boeing Reports Fourth-Quarter 2010 Results and 2011 Guidance - Jan 26, 2011

Boeing, Alaska Airlines Complete Contract for 15 Next-Generation 737s - Jan 25, 2011

2011-01-25T08:50:00.000-08:00

SEATTLE, Jan. 25, 2011 /PRNewswire/ -- Boeing (NYSE: BA) and Alaska Airlines today announced an order for 15 Next-Generation 737 airplanes, comprised of 13 737-900ERs (extended range) and two 737-800s. The 737-900ER is a new model for the Alaska Airlines fleet. The contract, which includes exercised options previously placed by Alaska, is valued at $1.3 billion at list prices.

The largest and newest model in the 737 family, the 737-900ER can carry up to 26 more passengers or fly about 500 nautical miles (926 km) farther than the 737-900. The longer range of the 737-900ER will connect distant city pairs across continents, such as Seattle to Orlando, Fla., in a generous two-class configuration. It has substantial economic advantages over competing models, including six percent lower operating costs per trip and four percent lower operating costs per seat mile. Alaska Airlines plans to operate the 737-900ER in a two-class configuration with 178 to 184 seats.

"The reliability and efficiency of our 737 fleet has been a direct contributor to our strong financial performance," said Brad Tilden, president of Alaska Airlines. "The 737-900ER will be a perfect fit for our transcontinental, high traffic west coast and mid-continental markets and will be the most fuel efficient airplane in our fleet. We look forward to adding the same 'Proudly All Boeing' logo to these airplanes that already adorns the rest of our 737 fleet."

The Next-Generation 737s will add capability to Alaska Airlines' fleet of 114 737s currently serving 61 destinations in the United States, Canada and Mexico.

"Alaska Airlines has established a strong record of operational and financial performance by operating a highly efficient and flexible all-Boeing 737 fleet," said Marlin Dailey, vice president of Sales and Marketing for Boeing Commercial Airplanes. "The addition of these Next-Generation 737s demonstrates our hometown partner's strong investment in its future growth. It also speaks to the continuous improvements we are making to the Next-Generation 737 in terms of efficiency, economics, reliability and passenger comfort."

The Next-Generation 737 family is the world's best-selling commercial jetliner. Demand for the Next-Generation 737 has led Boeing to announce two production rate increases, leading to the highest-ever production rates for the airplane in 2013.

Boeing, Alaska Airlines Complete Contract for 15 Next-Generation 737s - Jan 25, 2011

Boeing: Boeing Receives $1.6B Contract for P-8A Poseidon Low-Rate Initial Production

2011-01-25T08:49:00.000-08:00

SEATTLE, Jan. 25, 2011 -- Boeing [NYSE: BA] on Jan. 21 received a $1.6 billion contract from the U.S. Navy for low-rate initial production (LRIP) of the P-8A Poseidon aircraft. The LRIP 1 contract is for six P-8A aircraft, spares, logistics and training devices.

The Navy plans to purchase 117 of the Boeing 737-based P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace its P-3 fleet. Initial operational capability is planned for 2013.

“Providing these production aircraft to the Navy fleet on schedule is our No. 1 goal,” said Chuck Dabundo, Boeing vice president and P-8 program manager. “This is an exciting day for Boeing and the Navy and a testament to the P-8 team’s hard work and determination.”

"This first production contract represents a significant commitment by the U.S. Navy to recapitalize its force of long-range maritime patrol and reconnaissance aircraft," said Capt. Leon Bacon, P-8A deputy program manager for the Navy. “Ensuring that this capability arrives on schedule and within budget remains our primary objective.”

Boeing will begin final assembly of the first LRIP aircraft at its Renton, Wash., facility this summer. The Poseidon team is using a first-in-industry in-line production process that draws on Boeing’s Next-Generation 737 production system. All P-8A-unique aircraft modifications will be made in sequence during fabrication and assembly.

“The in-line approach we’ve incorporated on this military derivative aircraft is already paying the dividends we expected by helping us improve efficiency and reduce costs,” said John Pricco, Boeing Commercial Airplanes P-8 program manager.

As part of the U.S. Navy System Development and Demonstration contract awarded to Boeing in 2004, the team is building and testing six flight-test and two ground-test aircraft. The first three flight-test planes, T1, T2 and T3, are completing testing at Naval Air Station Patuxent River, Md. The program’s static test plane, S1, recently completed its test program, which began in May 2009; S2, the fatigue test plane, will begin testing later this year.

A derivative of the Next-Generation 737-800, the Poseidon is built by a Boeing-led industry team that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.

Boeing: Boeing Receives $1.6B Contract for P-8A Poseidon Low-Rate Initial Production

Boeing: Boeing and SAIC Submit Revised Ground Combat Vehicle Proposal to US Army

2011-01-21T10:58:00.002-08:00

ST. LOUIS, Jan. 21, 2011 -- The Boeing Company [NYSE: BA] has teamed with Science Applications International Corporation (SAIC) [NYSE: SAI] to submit a revised proposal for the technology development phase of the U.S. Army’s Ground Combat Vehicle (GCV) program. The team originally submitted a proposal in May, but the initial Request for Proposal was rescinded and a second request was issued in November.

The SAIC-led GCV team, known as Team Full Spectrum, remains intact from its original proposal effort. SAIC will be the prime contractor, with Boeing, Krauss-Maffei Wegmann and Rheinmetall Defence as subcontractors. The team’s offering draws on experience gained from the Puma and Manned Ground Vehicle programs and will be built in the United States with a team of experienced American small- and mid-tier supplier businesses.

“Team Full Spectrum has again put together an exceptional proposal to answer the Army’s requirement for a modern infantry fighting vehicle,” said Charles Toups, vice president and general manager of Boeing Network and Tactical Systems. “We have focused on the four key elements the Army has emphasized – capacity for a nine-soldier dismounted squad; a schedule that will allow production in seven years; force protection; and full-spectrum operations from civil relief through full combat operations. Our proposal offers mature technology for unequaled capability at the lowest possible risk.”

The team’s focus is to provide a solution that balances the technology the customer requires with the speed it needs to meet operational goals.

“Our offering is designed to protect soldiers by decreasing their burden of mechanical tasks so they can concentrate on accomplishing their mission,” said Deb Alderson, SAIC group president. “In addition, our team’s high technical readiness levels will help us meet the Army’s timeline.”

The GCV program will replace aging fighting vehicles currently in the Army’s inventory with a single platform capable of carrying an entire squad and protecting that squad from improvised explosive devices and other threats of modern warfare. The Army will award up to three technology demonstration contracts worth approximately $450 million each, with a 24-month time frame for development. The contract awards are expected in the second quarter of this year.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.
Boeing: Boeing and SAIC Submit Revised Ground Combat Vehicle Proposal to US Army

Boeing: 7th Boeing C-17 for Royal Air Force Arrives in United Kingdom

2011-01-21T10:58:00.001-08:00

LONDON, Jan. 21, 2011 -- Boeing [NYSE: BA] and its Boeing Defence UK subsidiary today announced the arrival of the Royal Air Force's seventh C-17 Globemaster III airlifter at RAF Brize Norton in Oxfordshire, England. The aircraft was officially delivered on Nov. 16 from Boeing's facility in Long Beach, Calif., and underwent modifications at the company's San Antonio facility before flying to the United Kingdom.

"The RAF C-17 fleet, along with the rest of the Airbridge, delivers an incredible capability to our deployed forces on the front line," said Air Officer Commanding 2 Group, Air Vice-Marshal Philip Osborn, Royal Air Force. "I am also extremely proud of the outstanding contribution that all our aircraft and personnel are making toward continued progress in Afghanistan."

Assigned to 99 Squadron at RAF Brize Norton, the UK fleet of C-17s provides critical airlift capability for the nation's Joint Rapid Reaction Force and has supported humanitarian and disaster-relief missions to Pakistan, Haiti and Chile. 99 Squadron's C-17s are equipped with upgraded software and avionics, as well as additional fuel tanks that extend the aircraft's nautical mile range to over 4,000 miles. In normal operations, the aircraft carries a crew of three -- two pilots and one air-loadmaster.

"May 2011 will mark the 10th anniversary of the delivery of the Royal Air Force's first C-17, which continues to perform superbly -- anytime and anywhere," said Boeing UK C-17 Program Manager Liz Pace. "The RAF uses its C-17s more than any other service today, which is why it has surpassed 60,000 flight hours with just six aircraft."

The UK Ministry of Defence announced it would acquire its seventh C-17 in December 2009, less than one year before delivery.

Boeing supports the RAF's C-17s through the C-17 Globemaster III Sustainment Partnership, a performance-based logistics program, at RAF Brize Norton, the RAF's main operating base for strategic air transport and air-to-air refueling. The arrangement provides the RAF with the benefits of complete "virtual fleet" access and an extensive support network. The virtual fleet concept enables C-17 customers, especially those with smaller numbers of aircraft, to benefit from worldwide parts availability and economies of scale when purchasing materials.

Boeing Defence UK Ltd. is a wholly owned subsidiary of The Boeing Company and a business unit of Boeing Defense, Space & Security. It currently has employees at 20 locations throughout the UK supporting Ministry of Defence and U.S. military programs.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.
Boeing: 7th Boeing C-17 for Royal Air Force Arrives in United Kingdom

Boeing: 7th Boeing C-17 for Royal Air Force Arrives in United Kingdom

2011-01-21T10:58:00.000-08:00

The UK Ministry of Defence announced it would acquire its seventh C-17 in December 2009, less than one year before delivery.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.
Boeing: 7th Boeing C-17 for Royal Air Force Arrives in United Kingdom

Boeing: Boeing Confirms P-8A Poseidon Airframe’s Structural Integrity with Full Scale Static Tests

2011-01-21T10:57:00.000-08:00

SEATTLE, Jan. 20, 2011 -- Boeing [NYSE: BA] today announced that it completed full scale static testing of the P-8A Poseidon’s airframe on Jan. 7. The series of tests, which began in May 2009, confirmed the airframe's structural integrity.

“The structure performed as we expected throughout testing, allowing us to efficiently expand the P-8A’s flight-test envelope,” said Chuck Dabundo, Boeing vice president and P-8 program manager. “Our static test plan was successful thanks to the combined efforts of Boeing’s design, analysis, and test teams and our U.S. Navy customer.”

S1 -- the program’s full-scale static ground-test vehicle -- underwent 154 different tests in which it sustained loads equal to or greater than those expected to occur during operational flights, with no failure of the primary structure. During 74 of the tests, the airframe was subjected to 150 percent of the highest expected flight loads. More than 4,000 installed strain gages and calibrated parts captured data for analysis.

In September, the Boeing P-8A team will begin refurbishing S1 to prepare it for live-fire testing at Naval Air Warfare Center, China Lake, Calif. Boeing will begin fatigue tests on its second ground-test vehicle, S2, later this year.

The Navy plans to purchase 117 of the P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace its P-3 fleet. Initial operational capability is planned for 2013.

A derivative of the Boeing Next-Generation 737-800, the P-8A Poseidon is built by a Boeing-led industry team that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.

Boeing: Boeing Confirms P-8A Poseidon Airframe’s Structural Integrity with Full Scale Static Tests

Boeing C-17 Program Enters 2nd Phase of Production Rate & Work Force Reductions

2011-01-21T10:56:00.001-08:00

LONG BEACH, Calif., Jan. 20, 2011 -- As part of a transition announced last year, Boeing [NYSE: BA] today confirmed it will deliver 13 C-17 Globemaster III airlifters in 2011 as the company moves to a new production rate of 10 C-17s per year. Boeing will reduce the production program's work force by approximately 1,100 jobs through the end of 2012. The company delivered 14 C-17s in 2010.

The move to the new production rate, announced in February 2010, will be completed this summer and result in the elimination of the second shift at the C-17 final assembly facility in Long Beach. The lower production rate is designed to extend the line as Boeing works to capture additional international orders.

"This has been a very difficult decision, no question about it," said Bob Ciesla, C-17 program manager. "But reducing the number of C-17s we deliver every year -- and doing that with a smaller work force -- will allow us to keep the production line open beyond 2012, protect jobs, and give potential customers more time to finalize their airlift requirements."

Boeing will provide assistance for impacted workers seeking potential positions elsewhere within the company.

"We've been communicating frequently with our employees about this process for the past year and will continue to do so," said Ciesla.

Boeing anticipates that the work force reduction will primarily impact Long Beach, where approximately 900 of the 1,100 reductions will take place at the program's final assembly site. The remaining 200 reductions will impact C-17 production program employees in Macon, Ga., Mesa, Ariz., and St. Louis. The company will try to redeploy many of the affected employees to other programs or other Boeing locations where the company has suitable job openings.

The program, which supports roughly 25,000 supplier jobs in 44 states, has an annual economic impact of approximately $5.8 billion. Now in its 18th year of service, the C-17 has supported numerous military transport, humanitarian and disaster-relief missions worldwide. The fleet continues to operate at an accelerated rate due to the recent troop surge in Afghanistan. It achieved 2 million total flight hours in December, less than five years after it passed the 1 million-flight-hour mark in March 2006.

Boeing has delivered 226 C-17s worldwide, including 20 to international customers. The U.S. Air Force -- including active duty, National Guard, and Air Force Reserve units -- has taken delivery of 206. Other customers include the United Kingdom Royal Air Force, the Canadian Forces, the Royal Australian Air Force, the United Arab Emirates Air Force, the Qatar Emiri Air Force, and the 12-member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations. India and Kuwait are expected to be the next C-17 customers.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.

Forward-Looking Information Is Subject to Risk and Uncertainty

Certain statements in this report may be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "plans," "projects," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based upon assumptions about future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak to events only as of the date they are made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws. Specific factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, statements we make regarding our guidance relating to future financial and operating performance, the effect of economic conditions in the United States and globally, and general industry conditions as they may impact us or our customers, as well as the other important factors disclosed previously and from time to time in our other filings with the Securities and Exchange Commission.

Boeing C-17 Program Enters 2nd Phase of Production Rate & Work Force Reductions