preview

Boeing : The Production Of Military Fighter And Bomber Aircraft

Better Essays

The Boeing Aircraft Company started out specializing in the production of military fighter and bomber aircraft during the World War II era and then transitioned to the commercial jet age. It was at this time that the company began producing commercial aircraft alongside military aircraft for profit. Boeing received financial assistance from the government when they initially began development and production but it was not until many years later that their investment became profitable and according to reports, “in the end, the707 was quite profitable, selling 25 percent above its average cost.” (Kerzner, p.92) Boeing’s emergence into the commercial aircraft arena with their 747’s was fraught with a lot of financial risks and difficulty it …show more content…

They surpassed and even forced out their biggest competitors in the industry, McDonnell Douglas and the Lockheed Corporation, because their “Jumbo Jet had became Boeing 's most profitable aircraft and the industry 's most efficient jetliner.” (Kerzner, p.92) Another deciding factor propelling Boeing into the commercial airline sector was their burgeoning need to compete with the Airbus. “When the Airbus was prospering, the Boeing Company was struggling with rising costs, declining productivity, delays in deliveries, and production inefficiencies. Boeing Commercial Aircraft Group lost $1.8 billion in 1997 and barely generated any profits in 1998.18 All through the 1990s; the Boeing Company looked for ways to revitalize its outdated production manufacturing system on the one hand, and to introduce leading edge technologies into its jetliners on the other. The development and production of the 777, first conceived of in 1989, was an early step undertaken by Boeing managers to address both problems.” (Kerzner, p.93) In my assessment of the meetings, decisions and recommendations discussed between Philip Condit and Jim Guyette are as follows, I believe that two entered in the agreement with a large breadth of respect for one another and an a legitimate desire to work together to bring their combined and

Get Access