Boeing NewGen Tanker Win Would Bring 320 Jobs, $17 Million to New Jersey

ST. LOUIS, Sept. 23, 2010 -- The Boeing Company [NYSE: BA] today announced that New Jersey will benefit from an estimated 320 total jobs and generate an estimated $17 million in annual economic impact if the Boeing NewGen Tanker is selected as the U.S. Air Force's next aerial refueling aircraft.

Boeing submitted its proposal July 9 to replace 179 of the Air Force's 400 Eisenhower-era KC-135 aircraft. The Air Force is expected to award a contract in the fall.

“New Jersey is a critical part of Boeing’s mission of providing the U.S. Air Force and its pilots with the most advanced tanker technology available anywhere in the world," said Mark DeVoss, Supplier Management director, Boeing Tanker Programs. “It begins in New Jersey, with the men and women who will help make our NewGen Tanker fly, and whose skilled craftsmanship will ensure that this aircraft can serve America for decades into the future.”

New Jersey manufacturers ready to produce critical components on the NewGen Tanker include Accurate Bushing, of Garwood, and Avionic Instruments, of Avenel.

Currently, Boeing has 179 employees in New Jersey and works with nearly 471 suppliers/vendors, delivering a total $464 million in annual economic impact.

The NewGen Tanker is a widebody, multi-mission aircraft based on the proven Boeing 767 commercial airplane and updated with the latest and most advanced technology. Capable of fulfilling the Air Force's needs for transport of fuel, cargo, passengers and patients, the combat-ready NewGen Tanker will meet or exceed the 372 mandatory requirements described in the service's final KC-X Request for Proposal released Feb. 24.

The NewGen Tanker will be made with a low-risk approach to manufacturing that relies on existing Boeing facilities in Washington state and Kansas as well as U.S. suppliers throughout the nation, with decades of experience delivering dependable military tanker and derivative aircraft. Nationwide, the NewGen Tanker program will support approximately 50,000 total U.S. jobs with Boeing and more than 800 suppliers in more than 40 states.

The Boeing NewGen Tanker also will be more cost-effective to own and operate than a larger, heavier tanker. It will save American taxpayers more than $10 billion in fuel costs over its 40-year service life because it burns 24 percent less fuel than the competitor's airplane.

Boeing has been designing, building, modifying and supporting tankers for decades. These include the KC-135 that will be replaced in the KC-X competition, and the KC-10 fleet. The company also has delivered four KC-767Js to the Japan Air Self-Defense Force and is on contract to deliver four KC-767As to the Italian Air Force.

Japan KC-767Js in flying formation, booms extended. The flight pictured is over Kansas during flight test activity. The tankers have since been delivered to Japan and are in operational service. 

A B-2 is refueled by the versatile NewGen Tanker

Two NewGen Tankers demonstrating the outstanding capabilities of the aircraft to perform as either a tanker or a receiver.

Photo Credit :http://www.unitedstatestanker.com/photos

Boeing Completes Production of 1st Australian Super Hornet with Provisions for Future Electronic Attack Capability

ST. LOUIS, Sept. 23, 2010 -- Boeing [NYSE: BA] announced today that it has completed production of the first Royal Australian Air Force (RAAF) F/A-18F Super Hornet that has the capability to be converted into an electronic attack aircraft.

Boeing is pre-wiring the RAAF's second lot of 12 Super Hornets for potential electronic attack capability conversion during production at the company's facilities in St. Louis.

"Incorporating the ability to introduce an electronic attack capability on 12 RAAF Super Hornets as they are produced in St. Louis provides maximum flexibility for our Air Force in the future," said RAAF Group Capt. Steve Roberton, Officer Commanding 82 Wing, which includes Super Hornet and F-111 aircraft. "Ultimately, if a decision to incorporate an electronic attack option is pursued, it will further expand the broad capability of an already formidable Super Hornet weapon system."

The Australian government announced in March 2007 that it would acquire 24 of the advanced Block II versions of the Super Hornet, all of which are equipped with the Raytheon-built APG-79 Active Electronically Scanned Array (AESA) radar. Eleven Super Hornets are now operating at RAAF Base Amberley in Queensland. All 11 aircraft were delivered ahead of schedule and on budget. Boeing will deliver Australia's 24th Super Hornet in 2011.

"Besides giving the RAAF the potential of introducing electronic attack capability in the future, producing these 12 aircraft with this configuration from the outset also reduces cost when compared with retrofitting at a later date," said Carolyn Nichols, Australian Super Hornet program manager for Boeing.

The Boeing Super Hornet is a multirole aircraft, able to perform virtually every mission in the tactical spectrum, including air superiority, day/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.

Boeing Receives Florida Governor's Business Expansion Award

TALLAHASSEE, Fla., Sept. 22, 2010 -- The Boeing Company [NYSE: BA] today received the Governor’s Business Expansion Award from Enterprise Florida at the Governor’s 2010 Business Diversification Awards ceremony in Tallahassee. The Boeing operation at Cecil Field in Jacksonville, Fla., won the award after the site received the consolidated U.S. Navy F/A-18 work and the U.S. Air Force QF-16 contract. The consolidation and contract win will add approximately 75 jobs to the Cecil Field facility.


"This expansion to our work scope will allow us to be even more responsive to our customers by colocating related programs in one spot," said Gary Phillips, Cecil Field site executive for Boeing. “We’re honored that the governor’s office has recognized our expansion as a significant contribution to the community of Jacksonville and the Duval County area."


"Florida's entrepreneurs and business leaders are major contributors to the state's economic growth," said Enterprise Florida President and CEO John Adams Jr. "Today, we recognized some of their exemplary accomplishments in creating marketable products and services, which are increasing Florida's competitiveness and building a future economy that will serve all segments of our population very well."


With the addition of the F/A-18 Structural Repair Facility, Cecil Field’s capabilities now include avionics repairs and upgrades; aircraft modification and maintenance; structural and composite component repair; and full nondestructive inspection. The Boeing team at Cecil Field draws on a decade of experience to support Navy and Marine Corps F/A-18A-F aircraft service, repair and modification programs. The facility, located at Cecil Commerce Center, includes 479,000 square feet of maintenance, manufacturing, warehousing and office space.


"Boeing is proud to be part of the Jacksonville community," Phillips said. "With our growth now and in the future, we look forward to making a positive impact here for many years to come."


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, Cathay Pacific Airways Finalize Contract for Six 777-300ERs

SEATTLE, Sept. 22 /PRNewswire/ -- Boeing (NYSE: BA) and Cathay Pacific Airways today announced the Hong Kong-based carrier has exercised existing purchase rights for six additional Boeing 777-300ERs (extended range).


The six new airplanes, with an estimated value of US$1.6 billion at Boeing list prices, will increase Cathay Pacific's 777-300ER future fleet from 30 to 36.


Cathay Pacific, one of the world's largest operators of the popular jetliner, also operates 12 Boeing 777-300s and five 777-200s.


"Cathay Pacific is a valued long-time Boeing customer. The global reach of Cathay Pacific's 777 fleet showcases the airplane's exceptional performance features and its passenger appeal around the world," said Marlin Dailey, vice president of Sales for Boeing Commercial Airplanes. "This additional commitment from a world-class operator like Cathay Pacific is a testament to the greater efficiency, economics and reliability of the 777-300ER."


Cathay Pacific first announced its selection of the 777-300ER in 2005. This announcement is Cathay Pacific's fourth increase in its acquisition plans for the long-range jetliner.


"We are very pleased to confirm this purchase of six more Boeing 777-300ERs – a superb aircraft that already has significantly enhanced our operations on key long-haul routes," said Cathay Pacific Chief Executive Tony Tyler. "We have been very impressed by the operating economics of these aircraft, while their high efficiency has resulted in a reduced environmental impact. As we continue to enhance our fleet, the 777-300ER will play a crucial role in our operations in the years to come."


The Boeing 777 is the world's most successful twin-engine, long-haul airplane. The 777-300ER extends the 777 family's span of capabilities, bringing twin-engine efficiency and reliability to the long-range market.


Boeing incorporated several performance enhancements for the 777-300ER, extending its range and payload capabilities. Excellent performance during flight testing, combined with engine efficiency improvements and design changes that reduce drag and airplane weight, contributed to the increased capability.


In addition to Boeing 777s, Cathay Pacific operates 47 747-400s in both passenger and cargo versions. The airline also has ordered 10 Boeing 747-8 Freighters. The highly efficient new cargo airplane will augment the airline's fleet of 25 747 Freighters used to connect Hong Kong to a wide range of international markets.


Sixty-one customers around the world have ordered more than 1,100 777s.

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


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.

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.)