Boeing and Machinists End Strike
Filed under: Boeing, Military Aviation, commercial aviation, production program
The Machinist Union ratified the new contract with Boeing yesterday. Excite News reports that the contract which settled an 8 week strike was approved by almost three quarters of the union members. The strike had slowed production of Boeing’s civil aircraft and there is no report of when full production rates will be re-achieved. Boeing has suffered lately with delays to their newest aircraft, the 787 Dreamliner. It also still continues to sell significant numbers of 737 and 777 aircraft. The largest military contract that Boeing desires is the KC-X tanker which would purchase 767 aircraft for that role, the contract remains in stasis as DoD waits for the next administration.
Earnings and projections remain good for Boeing
Despite losing the KC-45 contract, and as we previously discussed here, Boeing announced solid earnings and projections this week. See the story here. Of course the key to all of this is the 787 Dreamliner. This civil aircraft once it begins deliveries will be the key to Boeing’s performance over the next several years.
Boeing’s role in defense aviation shrinks
Filed under: Boeing, Military Aviation, commercial aviation, development program
This good article in The Seattle Times summarizes how defense aviation is playing a less-and-less role in Boeing’s business. See the article here. It traces how from World War II on Boeing built large transports, tankers and bombers for the US Army Air Corps and Air Force. Now, with the loss of the KC-45 contract, they really are not doing any such business. They obviously rely primarily on their civil aircraft for the bulk of their earnings and profits. Boeing defense business is starting to be more and more in the area of engineering services and total program development and management. They were the Lead System Integrator (LSI) on what used to be called National Missile Defense (NMD) in the Nineties. They have also had similar roles in other major contracts.
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