Boeing to Increase 737 Production Rate

SEATTLE, Sept. 16 -- Boeing announced today its production rate for the Next-Generation 737 program will increase to 38 airplanes per month in the second quarter of 2013. This decision comes just months after announcing a rate increase on the company's best-selling commercial jetliner from 31.5 to 35 airplanes per month in early 2012.


"Increasing production is in response to customer demand for this airplane," said Boeing Commercial Airplanes President and CEO Jim Albaugh. "Airlines want this innovative airplane sooner to renew their fleets to serve their customers. We made this decision after careful evaluation by Boeing and our supplier partners."


Key factors to the rate decision include the company's current backlog of more than 2,000 Next-Generation 737s, current options that customers are expected to exercise and ongoing sales campaigns. The rate increase is not expected to have a material impact on 2010 financial results.


Next-Generation 737 customers have benefited from continuous innovation of the airplane since its introduction in 1997. The first five airlines will receive the new 737 Boeing Sky Interior by the end of this year. Customers will gain from a two percent reduction in the airplane's fuel consumption by early 2012, through a combination of airframe and engine improvements.


The 2010 Current Market Outlook, Boeing's long-term forecast of air traffic volumes and commercial airplane demand, projects a market of over 21,000 single-aisle airplanes over the next 20 years, accounting for an anticipated 69 percent of the airplanes delivered and an estimated 47 percent of the $3.6 trillion total market value.


Forward-Looking Statements


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NASA Awards Boeing $1.24B Extension to International Space Station Sustainment Contract

HOUSTON, Sept. 14, 2010 -- Boeing today announced that NASA has awarded the company an extension to the International Space Station (ISS) contract for sustaining engineering. The extension is valued at $1.24 billion over a five-year period.

Under the extension, which begins Oct. 1, Boeing will provide sustaining engineering for hardware and software on the U.S. segment of the ISS and for common hardware and software available to the international partners.

The work also will include:

• management of ISS subsystems
• analytical integration and flight support
• on-orbit engineering support
• monitoring and trending system performance
• anomaly resolution, specialty engineering, and oversight of ongoing maintenance.

Boeing will perform the work at NASA's Johnson Space Center in Houston, Kennedy Space Center in Cape Canaveral, Fla., and Marshall Space Flight Center in Huntsville, Ala., as well as at Boeing sites in Houston, Huntsville, and Huntington Beach, Calif.

"Boeing’s knowledge of the International Space Station allows us to safely fly and operate the station to 2015, set the stage to enable ISS operations until 2020, and potentially extend operations through 2028," said Joy Bryant, Boeing vice president and program manager for ISS. "We are partnering with NASA to ensure the health of the station’s many subsystems in order to pave the way for ground-breaking science and research aboard the laboratories on station in the years ahead."

Besides sustaining engineering, the overall ISS contract also includes purchasing spare components and modifying current systems.

"We proved to NASA, through our technical and program management performance, that we are the right long-term partner for ongoing support to the International Space Station Program," Bryant said.

Boeing Projects $700 Billion Commercial Airplanes Market in North America Region

MONTREAL, Sept. 2 /PRNewswire/ -- Boeing forecasts that air carriers in North America will take delivery of about 7,200 new airplanes over the next 20 years at an investment of $700 billion.

New aircraft deliveries in Canada and the United States will be driven largely by the need to retire older, less fuel-efficient single-aisle airplanes and regional jets, as airlines replace them with new-generation, more fuel-efficient models. 

"North America is a large, mature market, and we expect passenger traffic for the region to grow at a modest rate of 3.4 percent," said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes, who released Boeing's 2010 North America market outlook today in Montreal. "The fast-paced lifestyles in Canada and the U.S. require rapid, frequent and reliable coast-to-coast and interregional transportation. Driven by this demand, nearly three-quarters of the new deliveries over the next 20 years will be single-aisle airplanes."

Taking retirements of airplanes into account, the North America fleet will increase from 6,590 airplanes today to about 9,000 airplanes by 2029.

Boeing forecasts that single-aisle airplanes will grow from 56 percent of the total North America fleet today to 71 percent of the fleet by 2029. Airlines are increasingly focusing on airplane age as fuel-thirsty, older airplanes weigh increasingly on earnings. Increased attention to aviation's impact on global climate change also will be a factor in selecting airplanes that produce less carbon emissions.

Newer airplane types such as the Next-Generation 737 provide significant advantages in environmental performance as well as improved capabilities, fuel efficiency and maintenance costs.

According to Tinseth "After several years of losses among the region's air carriers, we're seeing signs of improvement and airlines are beginning to implement fleet renewal plans as they look to the future. To help meet this demand, Boeing Commercial Airplanes will continue to work closely with our more than 500 suppliers and partners in Canada. Boeing imports parts and services from Canada amounting to more than a billion U.S. dollars a year, more than $625 million of which is associated with Boeing Commercial Airplanes."

Twin-aisle fleets will evolve in the region as airlines continue to develop international point-to-point services to a wider range of airport pairs and frequencies. Small- and mid-sized twin-aisle airplanes will increase to represent 19 percent of the North America fleet by 2029.

Within the North America market, Boeing sees a demand for 1,180 new , efficient twin-aisle airplanes such as the 787 Dreamliner. Twin-aisles will account for only 16 percent of total airplane demand in the region over 20 years but will have a proportionally higher share of delivery cost, at 37 percent of the overall investment.

Large airplanes (747-size and larger) will not see significant demand in North America, with only about 40 units (all freighters), or one percent of the total investment.

Boeing also predicts declining demand for regional jets in North America as airlines shift to more fuel-efficient turboprops or larger jetliner models. High fuel prices, intensified competition and the superior efficiencies of larger single-aisles will take a toll on the economics of small regional jets. This category will account for just 4 percent of the total investment for new airplanes, with only 800 new regional jet deliveries over the next 20 years, nearly all for replacement.

(For the purposes of the Boeing forecast, the North America market consists of the U.S. and Canada. Mexico is included in Boeing's forecast for Latin America.)

Boeing, US Navy Flight Testing Distributed Targeting System for Super Hornet

CHINA LAKE, Calif., Sept. 2, 2010 – The Boeing Company and the U.S. Navy’s Air Test and Evaluation Squadron VX-31 have begun flight testing a Distributed Targeting System for the F/A -18E/F Super Hornet strike fighter at the Naval Air Warfare Center Weapons Division Advanced Weapons Lab in China Lake. The current test phase is scheduled to be completed in November 2011.

The Distributed Targeting System uses onboard hardware and software processing to get precise targeting solutions for Super Hornet aircrews. This enhanced targeting capability is part of the Navy’s F/A-18E/F Network Centric Warfare Upgrades program as well as the F/A-18E/F Flight Plan, which ensures that the Super Hornet remains ahead of known and emerging threats throughout the coming years.

“Distributed Targeting will continue to broaden the Super Hornet’s already sophisticated multi role capability for the warfighter,” said Kory Mathews, F/A-18 and EA-18 Programs vice president for Boeing. “Distributed Targeting is a powerful tool that will provide Super Hornet aircrews with precise targeting capability when identifying and engaging ground target sets. This is another phase of our evolutionary approach to continuous capability enhancement for the Navy’s combat-proven Super Hornet.”

Successful completion of the flight tests will enable the targeting system to transition to operational testing in late 2011. The capability is expected to become fully operational in F/A-18E/F aircraft in 2012.

The Boeing Super Hornet is a multirole aircraft, able to perform virtually every mission in the tactical spectrum, including air superiority, day and night strike with precision-guided weapons, fighter escort, close air support, suppression of enemy air defenses, maritime strike, reconnaissance, forward air control and tanker missions. Boeing has delivered more than 430 F/A-18E/Fs to the U.S. Navy. Every Super Hornet produced has been delivered on or ahead of schedule and on budget.

1st Boeing C-130 AMP Low-Rate Initial Production Aircraft Inducted at Warner Robins Air Logistics Center

ST. LOUIS, Aug. 30, 2010 – The Boeing Company [NYSE: BA] today announced the induction of the first C-130 aircraft slated to receive the Avionics Modernization Program (AMP) upgrade at Warner Robins Air Logistics Center, Ga. This is the first of 20 aircraft to be upgraded during low-rate initial production (LRIP).

“Warner Robins is ready to receive the C-130 and begin installing the AMP kits,” said Tommy Jackson, C-130 AMP deputy program manager for the U.S. Air Force. “Our team has been trained by Boeing, and we are excited to get the first of many aircraft through our line and upgraded.”

Air Force workers at Robins will install glass cockpits that include a head-up display; six flat-panel, full-color displays; and night-vision capability in 10 of the 20 LRIP aircraft. Warner Robins will receive its second C-130 for AMP modification in October.

“The C-130 AMP is production-ready,” said Mahesh Reddy, C-130 AMP program manager for Boeing. “Today marks a very important day for the warfighter. Boeing and the Air Force are one step closer to delivering a fleet of C-130 AMP aircraft.”

Boeing will begin its portion of the installations in early 2012 at its San Antonio facility.

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Contact:

Jennifer Hogan

Maintenance, Modifications and Upgrades

Mobile: 405-818-7859

jennifer.c.hogan@boeing.com

1st Boeing-built GPS IIF Satellite Enters Service with US Air Force

EL SEGUNDO, Calif., Aug. 30, 2010 -- Boeing [NYSE: BA] today announced that the first of 12 Global Positioning System (GPS) IIF satellites the company is building for the U.S. Air Force has entered service. GPS IIF-1 is the newest member of the active 31-satellite GPS constellation, which provides accurate navigation, positioning and timing information to more than 1 billion military and civilian users around the world.

GPS IIF satellites offer new and enhanced capabilities, including a jam-resistant military signal, greater accuracy through improved atomic clock technology, and a protected civilian L5 signal to aid commercial aviation and safety-of-life applications. According to Air Force officials, on-orbit testing shows that the L5 signal meets all requirements. Based on program plans, the signal will remain in development status, broadcasting test data until initial operational capability is declared. The Air Force will send a message about this to GPS users worldwide.

"Putting the first next-generation GPS IIF satellite into operation is a significant step forward for the Air Force and the millions of warfighters and civilians who depend on this vital system," said Air Force Col. Bernard Gruber, commander, GPS Wing. "Now that IIF-1 is operational, military and commercial receivers around the world can begin using the satellite's improved signals to more accurately determine their position."

Launched on May 27, 2010, GPS IIF-1 has undergone three months of comprehensive on-orbit testing to validate its operations with the ground control system, other GPS satellites and a wide range of military and commercial GPS ground receivers. The satellite’s testing regimen was longer and more rigorous than usual because it is the first of the series.

A Boeing space vehicle operations team based in Colorado helped the GPS Wing monitor and evaluate test results as GPS IIF-1 went through many of its first on-orbit operations. With testing complete, the GPS Wing has officially transferred Satellite Control Authority to the Air Force 50th Space Wing and the 2nd Space Operations Squadron, which will operate the satellite on its mission.

"Boeing has built 40 of the 61 GPS satellites launched since 1978, and GPS IIF is a great addition to that long legacy," said Craig Cooning, vice president and general manager of Boeing Space & Intelligence Systems. "These satellites make a difference by adding new levels of power and precision to GPS services. The IIF series will be the backbone of the constellation for the next 12 to 15 years."

Boeing is producing the next 11 GPS IIF satellites using an innovative pulse-line manufacturing approach adapted from the company's aircraft and helicopter assembly lines. The line enables faster, more efficient development of several satellites at once. The company also developed the current GPS ground control infrastructure, called the Operational Control Segment (OCS), which has supported an expanding set of GPS services and capabilities since 2007.

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.

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Contact:

Bob Pickard

Space & Intelligence Systems

Office: 310-364-6125

Mobile: 310-343-1211

robert.pickard3@boeing.com

Boeing Opens New Intelligence Collaboration Center to Counter Global Threats

ARLINGTON, Va., Aug. 30, 2010 – Boeing [NYSE: BA] announced today that it has opened an intelligence collaboration and data analysis center in Northern Virginia to enable the creation and testing of new concepts to counter increasingly sophisticated, global threats to U.S. security.

The innovation center will allow Boeing’s Intelligence Community customers, industry partners, and the scientific and academic communities to brainstorm, test, and field technologies designed to help prevent terrorist attacks like a passenger’s attempt to detonate explosives on a U.S. airliner on Dec. 25, 2009.

"The concepts developed in this center will allow our customers and partners to apply critical technology to their missions," said Roger Krone, president of Boeing Network & Space Systems. "The investments Boeing is making in the center will provide a low-cost conduit for pushing technical solutions into the field with reduced risk and better results."

Boeing’s initial $1.5 million investment in the center will support a focus on sharing and transferring information among disparate organizations, while protecting the integrity of the original data.

Among the technologies to be demonstrated in the new center are Boeing’s Cross Domain Solutions. These incorporate various hardware and software products, such as the Visual Security Operations Console, DataMaster management software and eXMeritus HardwareWall.

“Boeing has been working for several years with the Intelligence Community to deploy proven, high-end computer systems to address data sharing,” said Dewey Houck, director of the Mission Systems subdivision of Boeing Intelligence & Security Systems. “This new center provides a venue for group brainstorming and ‘ideation’ – which means using ideas generated in a collaborative environment to develop solutions that can be quickly implemented to address immediate threats.”

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.

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Contact:

Michelle Roby

Intelligence & Security Systems

Office: 703-414-6335

Mobile: 571-345-6518

michelle.roby@boeing.com