Boeing Targets $2.3 Trillion Market With Jet-Service Expansion
Boeing Co. (BA) is expanding its maintenance offerings to airlines to capture more of an airplane-services market that may be worth as much as $2.3 trillion over the next 20 years.
The planemaker’s rebranded “Boeing Edge” will offer full- service care for jets it has sold, from daily monitoring of a carrier’s fleet to maintenance consultation or actual repair work. It extends the GoldCare service package that originated on Boeing’s new 787 Dreamliner and was broadened to the single- aisle 737.
Singapore Airlines’ cargo division is hiring Boeing for engineering and planning services for its 13-plane fleet of 747- 400 freighters, the aircraft maker said today. Under the agreement, Singapore Air’s own maintenance unit will do the work Boeing recommends, said Lou Mancini, the head of Boeing Commercial Aviation Services.
Growth in services, which generated more than $14 billion in revenue in 2011 across commercial and defense programs, is one of the company’s top priorities, Boeing Chief Executive Officer Jim McNerney said Feb. 8. Boeing forecasts air travel will keep growing at more than 5 percent a year, with planemakers selling more than $4 trillion worth of jets through 2030.
Airline services made up 15 percent of Boeing Commercial Airplanes’ $36 billion in sales last year, Mancini said on a conference call. His unit has 13,000 employees and provides services including maintenance, crew training, parts management and maps.
The company created a NASA-like mission-control center near Seattle that tracks customers’ problems with aircraft to get planes back in the air as quickly as possible. Boeing also developed new tools and algorithms to learn from maintenance statistics for thousands of its aircraft flying now, Mancini said.
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