BOEING GLOBAL SERVICES BOEING CONTINUES ITS PUSH IN PARTS & SERVICES 18TH ANNUAL AEROSPACE CONFERENCE | SOARING TO SUCCESS COMPILED BY: ED KAPLANIAN The Kaplanian Report Boeing’s Chief Executive, Dennis Muilenburg convened strategy sessions during the year of Boeing’s centenary (2016) deciding upon business moves that could propel the company into its second century of success. On July 1, 2017, Boeing Global Services (BGS) was launched, “Aerospace services represents one of our biggest growth opportunities for the future. Standing up Global Services will accelerate our capabilities across all Boeing Services and support areas. . .” said Muilenburg. Over the past 18 months, Boeing continues its aggressive push to broaden the BGS business unit by rolling out a wave of moves designed to increase capabilities. “Vertical integration” - making its own flight control devices (actuators), nacelles and composite wings, launching joint ventures with parts suppliers to make seats and components, and expanded services through acquisitions, were the activities of 2018. “Our criteria on vertical investments is clear; We are looking for things that drive customer value on our platforms, but also create a downstream support element and ability to grow our services business,” Muilenburg told Aviation Week editors. On October 9, 2018, in a big move, Boeing made the announcement that it completed the acquisition of KLX Aerospace Solutions, a major global provider of aviation parts and services. The acquisition was important for Boeing because it’s a complimentary business with few overlaps, positioning it for growth. "This acquisition brings together the talent and product offerings of Boeing and KLX to provide a one-stop shop that will allow us to create significant value for our customers. There are also extensive opportunities for services growth and innovation for Boeing and our supply chain. . .” said Stan Deal, President and CEO of Boeing Global Services. On October 16, 2018, Boeing announced service enhancements to its integrated digital solutions portfolio that enable better, faster operational decision-making for customers. “The amount of data coming off an airplane will double in the next 20 years,” said Mike Fleming, Vice President of Commercial Services, Boeing. “We are evolving our portfolio of tools and developing new applications and analytics to help customers take action to improve their operations.” On October 18, 2018, Boeing and Adient announced their airplane seat joint venture, Adient Aerospace, was operational after securing regulatory approvals. The companies appointed Alan Wittman, Chief Executive Officer and named their leadership team. They’ll address the aviation industry’s need for more capacity and quality airplane seating. On November 9, 2018, Boeing and Safran received regulatory approvals for a joint venture to design, build and service Auxiliary Power Units (APUs) – onboard engines that are primarily used to start the main engines and power aircraft systems while on the ground. The companies named Etienne Boisseau, Chief Executive Officer and established a partnership for expanded service capabilities. Working toward fulfilling the vision Dennis Muilenburg outlined for the newly created Boeing Global Services, he called for it to become a $50 billion business by 2027. In an interview with Maria Bartiromo on the Fox Business Network, November 16, 2018, Muilenburg said, “Our global services business has been growing at 12% a year since the business has been created.” Obviously Boeing is right on track to achieve the goal. Sources: Boeing Media, Photo Boeing Archives, and Fox Business Network 56