Boeing is the world's biggest manufacturer of jet aircraft, and one of only two companies - the other is Europe's Airbus - currently producing planes capable of carrying 100 passengers or more. Boeing's dominance is demonstrated by the fact that more than 70% of all commercial jets currently in service were manufactured by the company or one of its predecessors. However, the sharp contraction of the airline industry from 2008 onwards posed a new set of challenges, combined with long delays on completion of Boeing's hotly anticipated Dreamliner 787 jet, which finally entered commercial service at the end of 2011 more than three years behind schedule. Despite the popularity of the long-range Dreamliner with airline customers, the biggest seller in the portfolio, accounting for two-thirds or more of all deliveries, is still the smaller short- to medium-range 737 jet. An updated and more fuel-efficient version of that plane, the 737 Max 8, began shipping to customers in 2017. However, in a disastrous development for Boeing, all models were grounded worldwide in 2019 after the plane was involved in two tragic crashes. The company is racing to fix the problems associated with the plane, yet the suspension of operations involves potentially astronomical costs and loss of earnings. In 2018, Boeing delivered 806 commercial aircraft to customers, and has an order backlog of some 5,900 aircraft. Separately, the company is also one of the US Government's leading suppliers of military hardware, ranging from aircraft and helicopters to missiles and weapons systems. That division alone generates revenues of around $30bn a year. Group revenues topped $100bn for the first time in 2018 at $101.1bn, while net income jumped by almost a quarter to $10.5bn. Commercial airplanes account for 60% of revenues. James McNerney stepped down as CEO in 2015 in favour of former COO Dennis Muilenberg. The company was originally founded by William Boeing in 1916 to make seaplanes, and was an early pioneer in commercial travel and freight. The company's transportation division was demerged in 1934, to become United Air Lines. Boeing later absorbed several other aircraft manufacturers including its main US rival McDonnell Douglas in 1997.
Capsule checked 27th February 2019
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Who are the competitors of Boeing? The primary competitor is European counterpart Airbus, while Embraer and Bombardier compete in smaller aircraft.
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Adbrands Daily Update 14th Mar 2019: Boeing came under intense pressure when China and Indonesia became the first two countries to ground all flights by the company's 737 Max 8 jets, following the tragic aircrash in Ethiopia at the weekend. It was the second such crash involving the Max 8 in less than five months; the first involved an Indonesian airline. Both country's regulators broke with normal procedure to issue the temporary ban. Industry standards dictate that the safety regulator from the country that originally certified the aircraft as airworthy - in this case the US FAA - takes the lead in determining whether or not it should be grounded. China and Indonesia are two of the largest markets in Asia for the 737 Max 8 model, first introduced in 2017, with China alone accounting for more than 1 in 6 of all the models so far delivered by Boeing. The FAA responded with a confirmation of the plane's airworthiness. Yet despite that, a series of other countries followed suit in grounding the plane, first in Asia Pacific, and then elsewhere after the UK joined the boycott on Tuesday. Virtually every other major global market where the plane has been purchased followed suit over the next 24 hours. President Trump finally ordered the grounding of all planes in the US as well and Boeing suspended all deliveries of further Max 8s pending a full investigation.
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