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The Boeing Company () is an American
multinational corporation A multinational company (MNC) is a corporate organization that owns or controls the production of goods or services in at least one country other than its home country. Black's Law Dictionary suggests that a company or group should be considered ...
that designs, manufactures, and sells
airplane
airplane
s, rotorcraft,
rocket A rocket (from it, rocchetto, , bobbin/spool) is a projectile that spacecraft, aircraft An aircraft is a vehicle that is able to flight, fly by gaining support from the Atmosphere of Earth, air. It counters the force of gravity by using ...
s,
satellite In the context of spaceflight, a satellite is an object that has been intentionally placed into orbit. These objects are called artificial satellites to distinguish them from natural satellites such as Earth's Moon. On 4 October 1957 the Sovi ...
s, telecommunications equipment, and
missile In military terminology, a missile, also known as a guided missile or guided rocket, is a missile guidance, guided airborne ranged weapon capable of self-propelled flight usually by a jet engine or rocket motor. Missiles have four system compo ...
s worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers; it is the second-largest defense contractor in the world based on 2018 revenue,"Top 100 for 2019"
(based on 2018 data). '' Defense News''. Retrieved 30 January 2020.
and is the largest exporter in the United States by dollar value. Boeing stock is included in the Dow Jones Industrial Average. Boeing is incorporated in Delaware. Boeing was founded by
William Boeing
William Boeing
in
Seattle Seattle ( ) is a port, seaport city on the West Coast of the United States. It is the county seat, seat of King County, Washington, King County, Washington (state), Washington. Seattle is the largest city in both the U.S. state, state of Was ...
, Washington on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. Then chairman and CEO of Boeing, Philip M. Condit, assumed those roles in the combined company, while Harry Stonecipher, former CEO of McDonnell Douglas, became president and COO. The Boeing Company has its corporate headquarters in
Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive maps of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subd ...

Chicago
,
Illinois Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. It has the List of U.S. states and territories by GDP, fifth largest gross domestic product (GDP), List of U.S. states and territor ...
.Contact Us
". ''Boeing''. Retrieved on May 12, 2009.
Boeing is organized into four primary divisions: Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Boeing Global Services; and Boeing Capital. In 2019, Boeing recorded 76.6 billion in sales. Boeing is ranked 40th on the ''Fortune (magazine), Fortune'' magazine "Fortune 500" list (2019), and ranked 121th on the "Fortune Global 500" list (2020). In 2019, Boeing's global reputation, commercial business, and financial rating suffered after the Boeing 737 MAX groundings, 737 MAX was grounded worldwide following two fatal crashes in Lion Air Flight 610, late 2018 and Ethiopian Airlines Flight 302, early 2019.


History

The Boeing Company was started in 1916, when American lumber industrialist William E. Boeing founded Aero Products Company in Seattle, Washington. Shortly before doing so, he and Conrad Westervelt created the Boeing Model 1, "B&W" seaplane. In 1917, the organization was renamed Boeing Airplane Company, with William Boeing forming Boeing Airplane & Transport Corporation in 1928. In 1929, the company was renamed United Aircraft and Transport Corporation, followed by the acquisition of several aircraft makers such as Avion, Chance Vought, Sikorsky Aviation, Stearman Aircraft, Pratt & Whitney, and Hamilton Metalplane. In 1931, the group merged its four smaller airlines into United Airlines. In 1934, the manufacture of aircraft was required to be separate from air transportation. Therefore, Boeing Airplane Company became one of three major groups to arise from dissolution of United Aircraft and Transport; the other two entities were United Aircraft (later United Technologies) and United Airlines. In 1960, the company bought Piasecki Helicopter, Vertol Aircraft Corporation, which at the time, was the biggest independent fabricator of helicopters. During the 1960s and 1970s, the company diversified into industries such as outer space travel, marine craft, agriculture, energy production and transit systems. In 1995, Boeing partnered with Russian, Ukrainian and Anglo-Norwegian organizations to create Sea Launch, a company providing commercial launch services sending satellites to geostationary orbit from floating platforms. In 2000, Boeing acquired the satellite segment of Hughes Electronics. In December 1996, Boeing announced its intention to merge with McDonnell Douglas and, following regulatory approval, this was completed on August 4, 1997. This had been delayed by objections from the European Commission, which ultimately placed 3 conditions on the merger: termination of exclusivity agreements with 3 US airlines, separate accounts would be maintained for the McDonnell-Douglas civil aircraft business, and some defense patents were to be made available to competitors. The corporate headquarters were moved from Seattle to Chicago in 2001. In 2018, Boeing opened its first factory in Europe at Sheffield, UK reinforced by research partnership with The University of Sheffield. In May 2020, the company cut over 12,000 jobs due to the drop in air travel during the COVID-19 pandemic with plans for a total 10% cut of its workforce or approximately 16,000 positions. In July 2020, Boeing reported a loss of $2.4 billion as a result of the pandemic and the grounding of its 737 MAX aircraft. As a result of the profit loss, the company announced that it is planning to do more job and production cuts. On August 18, 2020, CEO Dave Calhoun announced to Boeing employees that the company plans another round of job cuts in addition to the 16,000 positions previously announced to be eliminated. On October 28, 2020, Boeing CEO David Calhoun, in an email message to employees, announced the lay off nearly 30,000 employees, as the airplane manufacturer was increasingly losing money due to the COVID-19 pandemic. The Boeing 777X, the largest capacity twinjet, made its maiden flight on January 25, 2020, and should enter service in 2023.


737 MAX crashes and grounding

After two fatal crashes of the Boeing 737 MAX narrow-body passenger airplanes in 2018 and 2019, aviation regulators and airlines around the world Boeing 737 MAX groundings, grounded all 737 MAX airliners. A total of 387 aircraft were grounded. Boeing's reputation, business, and financial rating has suffered after these groundings, questioning Boeing's strategy, governance, and focus on profits and cost efficiency.


Divisions

The corporation's three main divisions are Boeing Commercial Airplanes (BCA), Boeing Defense, Space & Security (BDS), and Boeing Global Services. * Boeing Commercial Airplanes (BCA) * Boeing Defense, Space & Security (BDS) ** Boeing Phantom Works, Phantom Works * Boeing Global Services * Boeing Capital * Engineering, Test & Technology * Boeing Shared Services Group * Boeing NeXt – explores urban air mobility


Environmental record

In 2006, the UCLA Center for Environmental Risk Reduction released a study showing that Boeing's Santa Susana Field Laboratory, a site that was a former Rocketdyne test and development site in the Simi Hills of eastern Ventura County in Southern California, had been contaminated by Rocketdyne with toxic and radioactive waste. Boeing agreed to a cleanup agreement with the EPA in 2017. Clean up studies and lawsuits are in progress.


Jet biofuels

The airline industry is responsible for about 11% of greenhouse gases emitted by the U.S. transportation sector. Aviation's share of the greenhouse gas emissions was poised to grow, as air travel increases and ground vehicles use more alternative fuels like ethanol and biodiesel. Boeing estimates that biofuels could reduce flight-related greenhouse-gas emissions by 60 to 80%. The solution blends algae fuels with existing jet fuel. Boeing executives said the company was collaborating with Brazilian biofuels maker Tecbio, Aquaflow Bionomic of New Zealand, and other fuel developers around the world. As of 2007, Boeing had tested six fuels from these companies, and expected to test 20 fuels "by the time we're done evaluating them". Boeing also joined other aviation-related members in the Algal Biomass Organization (ABO) in June 2008. Air New Zealand and Boeing are researching the jatropha plant to see if it is a sustainable alternative to conventional fuel. A two-hour test flight using a 50–50 mixture of the new biofuel with Jet fuel, Jet A-1 in a Rolls Royce RB-211 engine of a 747-400 was completed on December 30, 2008. The engine was then removed to be studied to identify any differences between the Jatropha blend and regular Jet A1. No effects on performances were found. On August 31, 2010, Boeing worked with the U.S. Air Force to test the Boeing C-17 running on 50% JP-8, 25% Hydro-treated Renewable Jet fuel and 25% of a Fischer–Tropsch fuel with successful results.


Electric propulsion

For NASA's N+3 future airliner program, Boeing has determined that hybrid electric vehicle, hybrid electric engine technology is by far the best choice for its subsonic design. Hybrid electric propulsion has the potential to shorten takeoff distance and reduce noise. Boeing created a team to study electric propulsion in future generation of subsonic commercial aircraft. SUGAR for Subsonic Ultra Green Aircraft Research includes, BR&T, Boeing Commercial Airplanes, General Electric, and Georgia Tech. There are five main concepts of the team is reviewing. SUGAR Free and Refined SUGAR, are two concepts based on conventional aircraft similar to the 737. SUGAR High and SUGAR Volt, are both high span, strut-based wing concepts. The final concept is SUGAR Ray, which is a wing body hybrid. The SUGAR Volt concept has resulted in a drop in fuel burn of more than 70 percent and a reduction of total energy use by 55 percent. This reduction is the result of adding an electric battery gas turbine hybrid propulsion system.


Political contributions, federal contracts, advocacy

In 2008 and 2009, Boeing was second on the list of Top 100 US Federal Contractors, with contracts totaling 22 billion and 23 billion respectively. Since 1995, the company has agreed to pay 1.6 billion to settle 39 instances of misconduct, including 615 million in 2006 in relation to illegal hiring of government officials and improper use of proprietary information. Boeing secured the highest ever tax breaks at the state level in 2013. Boeing's spent 16.9 million on lobbying expenditures in 2009. In the 2008 United States presidential election, 2008 presidential election, Barack Obama "was by far the biggest recipient of campaign contributions from Boeing employees and executives, hauling in 197,000 – five times as much as John McCain, and more than the top eight Republicans combined".Carney, Timothy (April 24, 2011
Boeing lives by big government, dies by big government
, ''Washington Examiner''
Boeing has a corporate citizenship program centered on charitable contributions in five areas: education, health, human services, Natural environment, environment, the arts, culture, and Civics, civic engagement. In 2011, Boeing spent 147.3 million in these areas through Charity (practice), charitable grants and Patronage, business sponsorships. In February 2012, Boeing Global Corporate Citizenship partnered with the Insight Labs to develop a new model for Foundation (non-profit), foundations to more effectively lead the sectors they serve. The company is a member of the U.S. Global Leadership Coalition, a Washington D.C.-based coalition of more than 400 major companies and NGOs that advocate a larger International Affairs Budget, which funds American diplomatic and development efforts abroad. A series of US diplomatic cables release, U.S. diplomatic cables show how U.S. diplomats and senior politicians intervene on behalf of Boeing to help boost the company's sales. In 2007 and 2008, the company benefited from over 10 billion of long-term loan guarantees, helping finance the purchase of their commercial aircraft in countries including Brazil, Canada, Ireland, and the United Arab Emirates, from the Export-Import Bank of the United States, some 65% of the total loan guarantees the bank made in the period.


Criticism

In December 2011, the non-partisan organization Public Campaign#Reports, Public Campaign criticized Boeing for spending 52.29 million on lobbying and tax avoidance, not paying taxes during 2008–2010, instead getting 178 million in tax rebates, despite making a profit of 9.7 billion, laying off 14,862 workers since 2008, and increasing executive pay by 31% to 41.9 million in 2010 for its top five executives. The firm has also been criticized for supplying and profiting from wars, including the war in Yemen where its missiles were found to be used for indiscriminate attacks, killing many civilians. Boeing has been accused of unethical practices (in violation of the Procurement Integrity Act) while attempting to submit a revised bid to NASA for lunar landing project.


Financials

For the fiscal year 2017, Boeing reported earnings of 8.191billion, with an annual revenue of 93.392billion, a 1.25% decline over the previous fiscal cycle. Boeing's shares traded at over $209 per share, and its market capitalization was valued at over 206.6billion. Between 2010 and 2018, Boeing increased its operating cash flow from $3 to $15.3billion, sustaining its Share (finance), share price, by negotiating advance payments from customers and delaying payments to its suppliers. This strategy is sustainable only as long as orders are good and delivery rates are increasing. From 2013 to 2019, Boeing spent over $60 billion on dividends and Share repurchase, stock buybacks, twice as much as the development costs of the 787.


Employment numbers

The company's employment totals are listed below. Approximately 1.5% of Boeing employees are in the Boeing Technical Fellowship, Technical Fellowship program, a program through which Boeing's top engineers and scientists set technical direction for the company. The average salary at Boeing is $76,784, reported by former employees.


Corporate governance


Board of directors

* Akhil Johri * Robert A. Bradway * Dave Calhoun, David L. Calhoun (president and CEO)Boeing Board of Directors
/ref> * Arthur D. Collins, Jr. * Admiral Edmund P. Giambastiani, Jr., U.S. Navy (ret) * Lynn Good, Lynn J. Good * Lawrence W. Kellner (chairman) * Caroline Kennedy * Ed Liddy, Edward M. Liddy * Steven M. Mollenkopf * Susan Schwab, Susan C. Schwab * Ron Williams, Ronald A. Williams * Mike S. Zafirovski


Chief executive officer


Chairman of the board


President

Notes * Boeing Board of Directors Separates CEO and Chairman Roles
. Boeing


See also

* Airbus * Embraer * Comac * United Aircraft Corporation * Competition between Airbus and Boeing * Future of Flight Aviation Center & Boeing Tour – Corporate public museum * United States Air Force Plant 42


References


Further reading

* Cloud, Dana L. ''We Are the Union: Democratic Unionism and Dissent at Boeing.'' Urbana, IL: University of Illinois Press, 2011. * Greider, William. ''One World, Ready or Not: The Manic Logic of Global Capitalism''. London: Penguin Press, 1997. * Reed, Polly. ''Capitalist Family Values: Gender, Work, and Corporate Culture at Boeing.'' Lincoln, NE: University of Nebraska Press, 2015.


External links

* * * {{Authority control Boeing, 1916 establishments in Washington (state) American companies established in 1916 Collier Trophy recipients Companies in the Dow Jones Industrial Average Companies listed on the New York Stock Exchange Defense companies of the United States History of Seattle Manufacturing companies established in 1916 Multinational companies headquartered in the United States Space Act Agreement companies Technology companies established in 1916 Vehicle manufacturing companies established in 1916 Wind turbine manufacturers