The Boeing Company () is an American
multinational corporation that designs, manufactures, and sells
airplanes,
rotorcraft,
rockets,
satellites,
telecommunications equipment, and
missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global
aerospace manufacturers; it is the third-largest
defense contractor in the world based on 2020 revenue,
and is the largest exporter in the United States by dollar value. Boeing stock is included in the
Dow Jones Industrial Average. Boeing is incorporated in Delaware.
Boeing was founded by
William Boeing in
Seattle,
Washington, on July 15, 1916.
The present corporation is the result of the merger of Boeing with
McDonnell Douglas on August 1, 1997. Then chairman and CEO of Boeing,
Philip M. Condit
Philip Murray Condit (born August 2, 1941) is an American engineer and businessman who was Chair and Chief executive officer (CEO) of the Boeing company from 1996 to 2003. He dramatically reshaped the company by Merger with McDonnell Douglas and r ...
, assumed those roles in the combined company, while
Harry Stonecipher, former CEO of McDonnell Douglas, became president and COO.
The Boeing Company's corporate headquarters is in
Chicago,
Illinois as of 2022.
[Contact Us]
". ''Boeing''. Retrieved on May 12, 2009. The company plans to move its headquarters to
Arlington, Virginia in the near future. Boeing is organized into four primary divisions:
Boeing Commercial Airplanes
Boeing Commercial Airplanes (BCA) is a division of The Boeing Company. It designs, assembles, markets, and sells jet airliners and business jets ( Boeing Business Jets), and also provides product-related maintenance and training to customers wor ...
(BCA);
Boeing Defense, Space & Security (BDS); Boeing Global Services; and
Boeing Capital. In 2021, Boeing recorded 62.3billion in sales. Boeing is ranked 54th on the ''
Fortune
Fortune may refer to:
General
* Fortuna or Fortune, the Roman goddess of luck
* Luck
* Wealth
* Fortune, a prediction made in fortune-telling
* Fortune, in a fortune cookie
Arts and entertainment Film and television
* ''The Fortune'' (1931 film) ...
'' magazine "Fortune 500" list (2020), and ranked 121st on the "
Fortune Global 500" list (2020).
In 2019, Boeing's global reputation, commercial business, and financial rating suffered after the
737 MAX fleet was grounded worldwide following two fatal crashes in
late 2018 and
early 2019. In September 2022, Boeing was ordered to pay $200m over charges of misleading investors about safety issues related to these crashes.
History
The Boeing Company was started in 1916, when American lumber industrialist
William E. Boeing founded Aero Products Company in Seattle, Washington. Shortly before doing so, he and Conrad Westervelt created the
"B&W" seaplane.
In 1917, the organization was renamed Boeing Airplane Company, with William Boeing forming Boeing Airplane & Transport Corporation in 1928.
In 1929, the company was renamed
United Aircraft and Transport Corporation, followed by the acquisition of several aircraft makers such as Avion, Chance
Vought,
Sikorsky Aviation,
Stearman Aircraft,
Pratt & Whitney
Pratt & Whitney is an American aerospace manufacturer with global service operations. It is a subsidiary of Raytheon Technologies. Pratt & Whitney's aircraft engines are widely used in both civil aviation (especially airlines) and military aviat ...
, and Hamilton Metalplane.
[
In 1931, the group merged its four smaller airlines into United Airlines. In 1934, aircraft manufacturing was required to be separate from air transportation.] Therefore, Boeing Airplane Company became one of three major groups to arise from dissolution of United Aircraft and Transport; the other two entities were United Aircraft (later United Technologies) and United Airlines.
In 1960, the company bought Vertol Aircraft Corporation
Piasecki Helicopter Corporation was a designer and manufacturer of helicopters located in Philadelphia and nearby Morton, Pennsylvania, in the late 1940s and the 1950s. Its founder, Frank Piasecki, was ousted from the company in 1956 and starte ...
, which at the time, was the biggest independent manufacturer of helicopters. During the 1960s and 1970s, the company diversified into industries such as outer space travel, marine craft, agriculture, energy production and transit systems.[
In 1995, Boeing partnered with Russian, Ukrainian and Anglo-Norwegian organizations to create Sea Launch, a company providing commercial launch services sending satellites to geostationary orbit from floating platforms. In 2000, Boeing acquired the satellite segment of Hughes Electronics.]
In December 1996, Boeing announced its intention to merge with McDonnell Douglas and, following regulatory approval, this was completed on August 4, 1997. This had been delayed by objections from the European Commission, which ultimately placed three conditions on the merger: termination of exclusivity agreements with three US airlines, separate accounts would be maintained for the McDonnell-Douglas civil aircraft business, and some defense patents were to be made available to competitors. In 2020, '' Quartz'' reported that after the merger there was a "clash of corporate cultures, where Boeing's engineers and McDonnell Douglas's bean-counters went head-to-head", which the latter won, and that this may have contributed to the events leading up to the 737 Max crash crisis.
The corporate headquarters were moved from Seattle to Chicago in 2001. In 2018, Boeing opened its first factory in Europe at Sheffield, UK, reinforced by a research partnership with The University of Sheffield.
In May 2020, the company cut over 12,000 jobs due to the drop in air travel during the COVID-19 pandemic with plans for a total 10% cut of its workforce or approximately 16,000 positions. In July 2020, Boeing reported a loss of $2.4 billion as a result of the pandemic and the grounding of its 737 MAX aircraft, and that it was in response planning to make more job and production cuts. On August 18, 2020, CEO Dave Calhoun announced further job cuts; on October 28, 2020, nearly 30,000 employees were laid off, as the airplane manufacturer was increasingly losing money due to the COVID-19 pandemic.
The Boeing 777X, the largest capacity twinjet, made its maiden flight on January 25, 2020. Following an incident during flight testing, estimated first delivery of the aircraft was delayed until 2024.
After two fatal crashes of the Boeing 737 MAX narrow-body passenger airplanes in 2018 and 2019, aviation regulators and airlines around the world grounded all 737 MAX airliners. A total of 387 aircraft were grounded. Boeing's reputation, business, and financial rating has suffered after these groundings, questioning Boeing's strategy, governance, and focus on profits and cost efficiency.
In May 2022, Boeing announced plans to move its global headquarters from Chicago to Arlington, Virginia, a suburb of Washington, D.C. The company said that this decision was made in part due to the region's "proximity to our customers and stakeholders, and its access to world-class engineering and technical talent."
Divisions
The corporation's four main divisions are Boeing Commercial Airplanes (BCA), Boeing Defense, Space & Security (BDS), Boeing Global Services, and Boeing Capital.
Boeing Commercial Airplanes
Boeing Commercial Airplanes (BCA) is a division of The Boeing Company. It designs, assembles, markets, and sells jet airliners and business jets ( Boeing Business Jets), and also provides product-related maintenance and training to customers wor ...
(BCA) builds commercial aircraft including the 737 737 most commonly refers to:
* Boeing 737, an American narrow-body passenger airplane
** Boeing 737 Classic
** Boeing 737 MAX
** Boeing 737 Next Generation
* AD 737, a year in the common era
* 737 BC, a year
* 737 (number), a number
737 may als ...
, 747 747 may refer to:
* 747 (number), a number
* AD 747, a year of the Julian calendar
* 747 BC, a year in the 8th century BC
* Boeing 747, a large commercial jet airliner
Music and film
* 747s (band), an indie band
* ''747'' (album), by country musi ...
, 767
767 may refer to:
* Boeing 767, a jet airliner
* 767 (number)
* AD 767, a year in the 8th century.
* 767 BC, a year in the 8th century BC
* Area code 767
Area code 767 is the local telephone area code of the Commonwealth of Dominica, within the ...
, 777
777 may refer to:
* 777 (number), a number
* AD 777, a year of the Julian calendar
* 777 BC, a year in the 8th century BC
* Boeing 777, a commercial jet airliner
:* Boeing 777X, the newer generation of the Boeing 777.
Art and entertainment Alb ...
, 787, along with freighter and business jet variants of most. The division employs nearly 35,000 people, many working at the company's manufacturing facilities in Everett and Renton, Washington (outside of Seattle), and South Carolina.
Boeing Defense, Space & Security (BDS) builds military aircraft, satellites, spacecraft, and space launch vehicles.
Boeing Global Services provides aftermarket support, such as maintenance and upgrades, to customers who purchase equipment from BCA, BDS, or from other manufacturers.
Boeing Capital provides customers financing for the products and services from the company's other divisions.
Environmental record
In 2006, the UCLA Center for Environmental Risk Reduction released a study showing that Boeing's Santa Susana Field Laboratory, a site that was a former Rocketdyne test and development site in the Simi Hills of eastern Ventura County in Southern California, had been contaminated by Rocketdyne with toxic and radioactive waste. Boeing agreed to a cleanup agreement with the EPA in 2017. Clean up studies and lawsuits are in progress.
On July 19, 2022, Boeing announced a renewed partnership with Mitsubishi to innovate carbon-neutral and sustainable solutions.
Jet biofuels
The airline industry is responsible for about 11% of greenhouse gas
A greenhouse gas (GHG or GhG) is a gas that Absorption (electromagnetic radiation), absorbs and Emission (electromagnetic radiation), emits radiant energy within the thermal infrared range, causing the greenhouse effect. The primary greenhouse ...
es emitted by the U.S. transportation sector. Aviation's share of the greenhouse gas emissions was poised to grow, as air travel increases and ground vehicles use more alternative fuels like ethanol and biodiesel. Boeing estimates that biofuel
Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels, such as oil. According to the United States Energy Information Administration (E ...
s could reduce flight-related greenhouse-gas emissions by 60 to 80%. The solution blends algae fuels with existing jet fuel
Jet fuel or aviation turbine fuel (ATF, also abbreviated avtur) is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is colorless to straw-colored in appearance. The most commonly used fuels for commercial a ...
.
Boeing executives said the company was collaborating with Brazilian biofuels maker Tecbio
Jet fuel or aviation turbine fuel (ATF, also abbreviated avtur) is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is colorless to straw-colored in appearance. The most commonly used fuels for commercial av ...
, Aquaflow Bionomic of New Zealand, and other fuel developers around the world. As of 2007, Boeing had tested six fuels from these companies, and expected to test 20 fuels "by the time we're done evaluating them". Boeing also joined other aviation-related members in the Algal Biomass Organization (ABO) in June 2008.
Air New Zealand and Boeing are researching the jatropha plant to see if it is a sustainable alternative to conventional fuel. A two-hour test flight using a 50–50 mixture of the new biofuel with Jet A-1 in a Rolls-Royce RB-211 engine of a 747-400 was completed on December 30, 2008. The engine was then removed to be studied to identify any differences between the Jatropha blend and regular Jet A1. No effects on performances were found.
On August 31, 2010, Boeing worked with the U.S. Air Force to test the Boeing C-17
The McDonnell Douglas/Boeing C-17 Globemaster III is a large military transport aircraft that was developed for the United States Air Force (USAF) from the 1980s to the early 1990s by McDonnell Douglas. The C-17 carries forward the name of two ...
running on 50% JP-8, 25% Hydro-treated Renewable Jet fuel and 25% of a Fischer–Tropsch fuel with successful results.
Electric propulsion
For NASA's N+3 future airliner program, Boeing has determined that hybrid electric engine technology is by far the best choice for its subsonic design. Hybrid electric propulsion has the potential to shorten takeoff distance and reduce noise. Boeing created a team to study electric propulsion in future generation of subsonic commercial aircraft. SUGAR for Subsonic Ultra Green Aircraft Research includes, BR&T, Boeing Commercial Airplanes, General Electric, and Georgia Tech. There are five main concepts the team is reviewing. SUGAR Free and Refined SUGAR, are two concepts based on conventional aircraft similar to the 737. SUGAR High and SUGAR Volt, are both high span, strut-based wing concepts. The final concept is SUGAR Ray, which is a wing body hybrid. The SUGAR Volt concept has resulted in a drop in fuel burn of more than 70 percent and a reduction of total energy use by 55 percent. This reduction is the result of adding an electric battery gas turbine hybrid propulsion system.
Political contributions, federal contracts, advocacy
In 2008 and 2009, Boeing was second on the list of Top 100 US Federal Contractors, with contracts totaling 22 billion and 23 billion respectively. Between 1995 and early 2021, the company has agreed to pay 4.3 billion to settle 84 instances of misconduct, including 615 million in 2006 in relation to illegal hiring of government officials and improper use of proprietary information.
Boeing secured the highest ever tax break
Tax break also known as tax preferences, tax concession, and tax relief, are a method of reduction to the tax liability of taxpayers. Government usually applies them to stimulate the economy and increase the solvency of the population. By this fis ...
s at the state level in 2013.
Boeing's spent 16.9 million on lobbying expenditures in 2009. In the 2008 presidential election, Barack Obama "was by far the biggest recipient of campaign contributions from Boeing employees and executives, hauling in 197,000 – five times as much as John McCain
John Sidney McCain III (August 29, 1936 – August 25, 2018) was an American politician and United States Navy officer who served as a United States senator from Arizona from 1987 until his death in 2018. He previously served two terms ...
, and more than the top eight Republicans combined".[Carney, Timothy (April 24, 2011]
Boeing lives by big government, dies by big government
, '' Washington Examiner''
Boeing has a corporate citizenship
Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethicall ...
program centered on charitable contributions in five areas: education, health, human services, environment
Environment most often refers to:
__NOTOC__
* Natural environment, all living and non-living things occurring naturally
* Biophysical environment, the physical and biological factors along with their chemical interactions that affect an organism or ...
, the arts, culture, and civic engagement
Civic engagement or civic participation is any individual or group activity addressing issues of public concern. Civic engagement includes communities working together or individuals working alone in both political and non-political actions to ...
. In 2011, Boeing spent 147.3 million in these areas through charitable grants and business sponsorships. In February 2012, Boeing Global Corporate Citizenship partnered with the Insight Labs to develop a new model for foundations
Foundation may refer to:
* Foundation (nonprofit), a type of charitable organization
** Foundation (United States law), a type of charitable organization in the U.S.
** Private foundation, a charitable organization that, while serving a good cause ...
to more effectively lead the sectors they serve.
The company is a member of the U.S. Global Leadership Coalition
The U.S. Global Leadership Coalition (USGLC) is a nonprofit organization formed by a coalition of American businesses and NGOs, senior national security and foreign policy experts, faith-based and community leaders from across the United States w ...
, a Washington D.C.-based coalition of more than 400 major companies and NGOs that advocate a larger International Affairs Budget, which funds American diplomatic and development efforts abroad. A series of U.S. diplomatic cables show how U.S. diplomats and senior politicians intervene on behalf of Boeing to help boost the company's sales.
In 2007 and 2008, the company benefited from over 10 billion of long-term loan guarantees, helping finance the purchase of their commercial aircraft in countries including Brazil, Canada, Ireland, and the United Arab Emirates, from the Export-Import Bank of the United States, some 65% of the total loan guarantees the bank made in the period.
Criticism
In December 2011, the non-partisan organization Public Campaign criticized Boeing for spending 52.29 million on lobbying and not paying taxes during 2008–2010, instead getting 178 million in tax rebates, despite making a profit of 9.7 billion, laying off 14,862 workers since 2008, and increasing executive pay by 31% to 41.9 million in 2010 for its top five executives.
The firm has also been criticized for supplying and profiting from wars, including the war in Yemen where its missiles were found to be used for indiscriminate attacks, killing many civilians.
Boeing has been accused of unethical practices (in violation of the Procurement Integrity Act
The processes of government procurement in the United States enable federal, state and local government bodies in the country to acquire goods, services (including construction), and interests in real property.
In fiscal year 2019, the US Federal ...
) while attempting to submit a revised bid to NASA for their lunar landing project.
Financials
For the fiscal year 2017, Boeing reported earnings of 8.191billion, with an annual revenue of 93.392billion, a 1.25% decline over the previous fiscal cycle. Boeing's shares traded at over $209 per share, and its market capitalization was valued at over 206.6billion.
Between 2010 and 2018, Boeing increased its operating cash flow
A cash flow is a real or virtual movement of money:
*a cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected ...
from $3 to $15.3billion, sustaining its share price, by negotiating advance payments from customers and delaying payments to its suppliers. This strategy is sustainable only as long as orders are good and delivery rates are increasing.
From 2013 to 2019, Boeing spent over $60 billion on dividends and stock buybacks
Share repurchase, also known as share buyback or stock buyback, is the re-acquisition by a company of its own shares. It represents an alternate and more flexible way (relative to dividends) of returning money to shareholders. When used in coor ...
, twice as much as the development costs of the 787.
In 2020, Boeing's revenue was $11.8 billion as a result of the pandemic slump. Due to higher sales in other divisions and an influx in deliveries of commercial jetliners in 2021, revenue increased 44%, reaching nearly $17 billion.
Employment numbers
The company's employment totals are listed below.
Approximately 1.5% of Boeing employees are in the Technical Fellowship program, a program through which Boeing's top engineers and scientists set technical direction for the company. The average salary at Boeing is $76,784, reported by former employees.
Corporate governance
In 2022, Rory Kennedy made a documentary film, '' Downfall: The Case Against Boeing'', streamed by Netflix. She said about the 21st-century history of Boeing "There were many decades when Boeing did extraordinary things by focusing on excellence and safety and ingenuity. Those three virtues were seen as the key to profit. It could work, and beautifully. And then they were taken over by a group that decided Wall Street was the end-all, be-all."
On May 5, 2022, Boeing announced that it would be moving its headquarters from Chicago to Arlington, Virginia in the Washington, D.C. metropolitan area. Additionally, it plans to add a research and technology center in Northern Virginia.
Board
Boeing is headed by a President who also serves as the chief executive officer. The roles of chairman of the board and CEO were separated in October 2019.
Past leadership
See also
* Boeing Everett Factory - main production facility for commercial widebody aircraft
* Competition between Airbus and Boeing
The competition between Airbus and Boeing has been characterized as a duopoly in the large jet airliner market since the 1990s.
This resulted from a series of mergers within the global aerospace industry, with Airbus beginning as a pan-Europe ...
* Future of Flight Aviation Center & Boeing Tour
The Future of Flight Aviation Center, officially known as Boeing Future of Flight, is an aviation museum and education center located at the northwest corner of Paine Field in Mukilteo, Washington. It is the starting point for the Boeing Tour, a ...
– Corporate public museum
* United Aircraft Corporation
* United States Air Force Plant 42
References
Further reading
* Cloud, Dana L. ''We Are the Union: Democratic Unionism and Dissent at Boeing.'' Urbana, IL: University of Illinois Press, 2011.
* Greider, William. ''One World, Ready or Not: The Manic Logic of Global Capitalism''. London: Penguin Press, 1998.
* Reed, Polly. ''Capitalist Family Values: Gender, Work, and Corporate Culture at Boeing.'' Lincoln, NE: University of Nebraska Press, 2015.
External links
*
*
*
{{Authority control
1916 establishments in Washington (state)
American companies established in 1916
Collier Trophy recipients
Companies in the Dow Jones Industrial Average
Companies listed on the New York Stock Exchange
Defense companies of the United States
History of Seattle
Manufacturing companies established in 1916
Multinational companies headquartered in the United States
Space Act Agreement companies
Technology companies established in 1916
Vehicle manufacturing companies established in 1916
Wind turbine manufacturers