Boeing ends year with backlog, anticipates 737 MAX success

THE AVIONICS INTELLIGENCE REPORT, 17 Jan. 2012. Executive Editor Courtney Howard reports on The Boeing Company’s year-end announcements, as well as predictions by Boeing officials that 2012 will be “the year of the 737 MAX.” Boeing officials have made several announcements, much of which is being met with applause, whereas one particular item is gaining mixed reviews.  

Boeing managers are officially releasing the company’s fourth quarter results in two weeks; however, they have revealed several specifics about 2011 as a whole. Boeing booked 805 net commercial airplane orders, many of which were logged late in the year. Moreover, the company delivered 477 airplanes throughout 2011, which ended with a backlog of more than 3700 commercial orders.

Boeing Commercial Airplanes President and CEO Jim Albaugh is calling the past year one of the most exciting and important years in the company history. He went on to cite Boeing’s 2012 goal of ensuring stable, reliable 787 production.

The company won 200 orders for the Boeing 777 twin-aisle aircraft, setting a new record for orders in a single year.

2011 saw the launch of the Boeing 737 MAX, which has logged more than one thousand orders and commitments to date. Boeing’s Albaugh predicts that 2012 will be the “Year of the 737 Max”.

In other news, the company revealed it will close the Boeing Defense, Space & Security facility in Wichita by the end of 2013. Boeing Wichita, with 2160 employees, supports flight mission planning and integrated logistics, as well as the company’s Global Transport & Executive Systems business, including the B-52 and 767 International Tanker programs.

Kansas politicians are described as “fuming” over the decision. According to Gov. Sam Brownback: “We have been there with the company through every battle, whether it was the 10 year tanker battle or securing funding for other key Boeing Defense programs vital to national security. Our team never wavered, always keeping its commitment to the success of the Boeing Company for the good of the state and of the nation. “The dedication and hard work of generations of Kansans built the success the Boeing Company enjoys today,” he continued. 

Future aircraft maintenance, modification, and support work will move to San Antonio, whereas engineering work will be placed in Oklahoma City. Washington state will gain 200 tanker-related jobs; however, in a surprise move, Boeing is moving 100 military and government VIP jet jobs to Oklahoma City, leaving Washington state with a net gain of only 100 jobs, much lower than anticipated.

Stay tuned to Avionics Intelligence for the latest market news. That’s all for now. Thanks for watching The Avionics Intelligence Report.

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