- William Boeing founded aircraft manufacturing company (started as hobby)
- Built plane with Conrad Westervelt
- First plane was called B&W, it was 27.5 foot seaplane, top speed 75mph.
- Westervelt relocated to East coast
- Boeing company launch, it was called "Pacific Aero Products Company"
then changed name to "The Boeing Airplane Company"
- First customer was the government of New Zealand

  • used the B&W for airmail and pilot training
- New company took flight when Navy ordered 53 training sea planes as the US prepared to enter WWI

Between World War I and World II (WWI Dates1914-1919 / II Dates 1939-1945)
- Boeing grew to be one of the largest aircraft manufacturers in the United States
by supplying the military with training & fighting planes, pioneering airmail planes,
and routes, and developing early passenger planes.

During World War II (1939-1945)
- Boeing was "one of the country's leading defense and space contractors"
- B-17 "Flying Fortress" & B-29 "Super Fortress" essential military force

- B-52 - eight-engine bomber

  • used in Vietnam War, Persian Gulf War (1991), Afghanistan (2001)
- research & development that took place during the war years
set stage for the coming age of commercial jetliners

- Boeing made entry into commercial aviation w/Boeing 707
- Success of the 707 helped establish Boeing as a leader in commercial aviation

    • until then had been dominated by the Douglas Aircraft Company

- 727 introduced

- 737 introduced

- 747 rollout flagship aircraft and largest civilian aircraft at the time
- Thorton "T" Wilson became president of company
- New president faced "impending disaster", Congress pulled plug on funding of development of the
Super Sonic Transport (the Apollo project)
- Wilson was forced to cut Boeing's workforce from 105, 000 to 38,000
- Profound effect on local economy, Seattle unemployment rose to 14%

- layoffs were enough to save the company
- company entered period of prosperity
- company attempted to diversify

  • irrigating an eastern Oregon desert
  • managing projects for the Federal Department of Housing & Urban Development
  • building voice scramblers for police department

Early 1980s
- Boeing return to its core of building airplanes
- Adding 757 and 767 to the 7-series
- releasing upgraded versions of the 737
- two main competitors, McDonnell Douglas in the US, Airbus in Europe

Second half of 1980s and Early 1990s
- growth in commercial aviation division
- air travel had been steadily growing since 1970

- Boeing broke its own sales records for six years in a row (started in 1985)
- received orders for more than 3,500 jetliners

- Frank Shrontz, President/CEO wrote a report in anticipation of downturn in the market
- Gulf War and an economic slow-down had put an end to the decades of growth in air travel

- Boeing employed nearly 150,000 people & posted net earnings of $1.55 billion
- company that started as a hobby had become "the king of the jet makers"

- Boeing business model was nicknamed "The Lazy B", Fortune declared 1994 to be
Boeing's "annual Horribilis"
- earnings shrank to nearly 1/2 $856 million & Boeing slashed 9,300 employees from its payroll
- company needed new strategy to revitalize its mature market
- most analysts believed that the airplane manufacturer segment of industry was about to
enter an era of unprecedented price competition
- Boeing needed to drastically cut cost

- Shrontz retired as CEO
- Phil Condit succeeded - was 30-year Boeing veteran
- Condit acknowledge early in his term that he may be "Boeing's first CEO NOT to roll out a new aircraft
during his tenure"
- Condit launched company's transformation into
"a more agile, geographically diverse, more broadly based company less dependent on the highly
cyclical commercial jetliner market"
- Condit wrote in 1996 - Vision 2016
called for Boeing to become "an integrated aerospace company and a global enterprise, designing, producing
and supporting commercial airplanes, defense systems, and defense and civil space
- Vision 2016 was centered on three strategic initiatives:
1 - Run a healthy core business
2 - Leverage strengths into new products & new services
3 - Open new frontiers
- August 1996 the company acquired Rockwell International Corporation's aerospace & defense businesses

- Boeing faltered with "an embarrassing failure to meet delivery schedules"
- Production delays caused Boeing to take "a $178 million loss

  • first red ink in 50 years
  • 90% drop in profits for the 1st quarter of 1998

- Boeing Commercial Airplanes was on the road to recovery
- New Leadership - Alan Mulally president
- Scott Carson CFO
- "largely back on track" & "greatly reduced out-of-sequence work and parts shortages"

- Acquires Preston Aviation Solutions

- Boeing purchased Jeppesen Sanderson Inc
*leading provider of print & electronic flight information services
- Acquired Hughes Electronics Corporation's space and communications businesses

  • became the world's premier space-based communication company

- Formed new business unit called Commercial Aviation Services (CAS)
- Scott Carson named president of Connexion by Boeing
- Boeing launched Air Traffic Management Service
- Condit relocated Boeing's corporate headquarters from Seattle to Chicago
- Condit restructured the company into six business units that would align w/the new strategic footprint
- Presidents of Boeing's two largest business units
Integrated Defense Systems & Commercial Airplanes were promoted to chief executives officers
- Four additional acquisitions

  • Preston Aviation Solution
  • Continental Data Graphics
  • SBS International
  • AeroInfo Systems Inc
- 911 (September 1, 2011) affected market changes, several airlines pulled out of their contracts
Connexion by Boeing
- $7.3 billion of red ink for full year of 2001 - biggest deficit in the industry of the airline industry

  • airlines were focused on short-term survival, not long-term investments

- the top 10 US airlines posted staggering operating losses of $12.3 billion
- CAS began developing Airplane Health Management (AHM)

  • an in-flight airplane monitoring system that would help airlines reduce flight-schedule interruptions

- Boeing unveiled its new strategy at the Paris Air Show, which was called e-Enabled Advantage
- ValSim Launched

- Boeing launched a concerted effort to develop a strategy for how it should support
and generate value from the e-Enabled environment, led by Chris Kettering
- Carson named senior vice president of marketing and sales for Boeing Commercial Airplane Company