Boeing+History

- 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 - New company took flight when Navy ordered 53 training sea planes as the US prepared to enter WWI
 * 1916 **
 * used the B&W for airmail and pilot training

- 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.
 * Between World War I and World II (WWI Dates1914-1919 / II Dates 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
 * During World War II (1939-1945)**

- B-52 - eight-engine bomber - research & development that took place during the war years set stage for the coming age of commercial jetliners
 * 1952**
 * used in Vietnam War, Persian Gulf War (1991), Afghanistan (2001)

- Boeing made entry into commercial aviation w/Boeing 707 - Success of the 707 helped establish Boeing as a leader in commercial aviation - 727 introduced
 * 1954**
 * until then had been dominated by the Douglas Aircraft Company
 * 1962**

- 737 introduced
 * 1967**

- 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%
 * 1968**

- layoffs were enough to save the company - company entered period of prosperity - company attempted to diversify
 * 1970s**
 * irrigating an eastern Oregon desert
 * managing projects for the Federal Department of Housing & Urban Development
 * building voice scramblers for police department

- 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
 * Early 1980s**

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

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

- 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
 * 1990**

- 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"
 * 1992**

- 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
 * 1994**

- 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// **systems"** - __Vision 2016 was centered on three strategic initiatives:__ 2 - Leverage strengths into new products & new services 3 - Open new frontiers - August 1996 the company acquired Rockwell International Corporation's aerospace & defense businesses**
 * 1996**
 * 1 - Run a healthy core business

1997 - Production delays caused Boeing to take "a $178 million loss**
 * - Boeing faltered with "an embarrassing failure to meet delivery schedules"
 * first red ink in 50 years
 * 90% drop in profits for the 1st quarter of 1998

1998 - New Leadership - Alan Mulally president - Scott Carson CFO - "largely back on track" & "greatly reduced out-of-sequence work and parts shortages"**
 * - Boeing Commercial Airplanes was on the road to recovery

1999
 * - Acquires Preston Aviation Solutions**

2000 - Acquired Hughes Electronics Corporation's space and communications businesses**
 * - Boeing purchased Jeppesen Sanderson Inc
 * leading provider of print & electronic flight information services


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

- Scott Carson named president of Connexion by Boeing - Boeing launched Air Traffic Management Service **2001 - 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**
 * - Formed new business unit called Commercial Aviation Services (CAS)
 * - Condit relocated Boeing's corporate headquarters from Seattle to Chicago

- 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
 * Preston Aviation Solution
 * Continental Data Graphics
 * SBS International
 * AeroInfo Systems Inc
 * airlines were focused on short-term survival, not long-term investments

2002 - CAS began developing Airplane Health Management (AHM)**
 * - the top 10 US airlines posted staggering operating losses of $12.3 billion


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

2003 - ValSim Launched**
 * - Boeing unveiled its new strategy at the Paris Air Show, which was called e-Enabled Advantage

2004** - 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

Company