Overview: Boeing Commercial Airplanes is the world's leader in commercial aviation because of its complete focus on airplane operators and the passengers they serve. Boeing products and services deliver superior design, efficiency and support to airline customers and allow passengers to fly where they want to go, when they want to go.

Working together with supplier partners around the world, Boeing has delivered more than 15,000 airplanes to airlines, leasing companies, governments and private firms. Customers who choose Boeing acquire more than great airplanes; they also gain access to the industry's most complete selection of aviation support products and services.

Organization: One of four operating groups within The Boeing Company, Commercial Airplanes is headquartered in Renton, Wash., under the leadership of President and Chief Executive Officer Alan Mulally. It is organized into three primary business units: 787 Program, Airplane Programs and Commercial Aviation Services.

787 Program: Boeing Commercial Airplanes' development efforts are focused on the Boeing 787 Dreamliner, a family of new, super-efficient airplanes that will bring big jet comfort and economics to the mid-size market. The Boeing 787 will incorporate advanced materials, systems and engines to provide unprecedented performance levels, including a 20-percent improvement in fuel performance on a per-passenger basis. This efficiency will mean improved environmental performance. The 787-8 Dreamliner and 787-9 airplanes will carry 223-259 passengers in tri-class configurations on routes of 8,500 and 8,300 nautical miles (15,700 and 15,400 kilometers) respectively. A third 787 family member, the 787-3 Dreamliner, will accommodate nearly 296 passengers in a two-class configuration and be optimized for routes of 3,500 nautical miles (6,500 km).

The Boeing board of directors granted authority to offer the airplane for sale in late 2003. Boeing has selected General Electric and Rolls-Royce to develop engines for the new airplane. Program launch occurred in April 2004 with a record order from All-Nippon Airways. Air New Zealand became a launch customer with its order in June 2004. Blue Panorama and First Choice Airways became the first European 787 Dreamliner customers in July 2004. In October 2004, Primaris Airlines became the first U.S. 787 Dreamliner customer. JAL, Continental Airlines and Vietnam Airlines joined the 787 launch customer team in December 2004. In January 2005, six Chinese carriers -- Air China, China Eastern Airlines, China Southern Airlines, Hainan Airlines, Shanghai Airlines and Xiamen Airlines -- signed an agreement for the purchase of 60 787s. Ethiopian Airlines became the first Africa-based operator to choose the Dreamliner in February 2005; Icelandair also became a launch customer in February 2005. Korean Air, Air Canada and Air India joined the launch customer team in April 2005.

Production will begin in 2006. First flight is expected in 2007 with certification, delivery and entry into service occurring in 2008.

Airplane Programs: Airplane Programs offers an unequaled product line, providing significant value for Boeing customers. Only Boeing offers airplane models to serve every passenger market from 100 seats to more than 500 seats, as well as the most complete line of cargo freighters.

The 717-200 provides exceptional performance for the short-haul, high frequency 100-passenger airline market. The 717 makes effective use of advanced technology to lower operating costs, reduce noise emissions and provide big-jet comfort. The twinjet is powered by two ultra-quiet Rolls Royce BR715 high-bypass ratio engines. The two-crew flight deck incorporates the most modern and proven avionics technology in the industry.

Earlier this year, Boeing announced that it will conclude 717 production in 2006 after delivering on current customer commitments. The 717 will continue to deliver unsurpassed economy and value to airline customers for years to come. Boeing will continue to provide outstanding customer service support for the 717s operating at carriers worldwide.

The 717 provides efficient short-hop services, short-field operations, fast turnaround at airport gates and the ability to sustain many one-hour flights every day, day after day, all while maintaining one of the highest dispatch reliability rates in the industry.

Final assembly of the 717 takes place on a continuous moving line in California at the Long Beach Division of Boeing Commercial Airplanes.

The 737 is the most advanced family of single-aisle airplanes in the market today, consistently delivering profitability through maximum efficiency and reliability. The 737 is offered in four sizes. The 737-600 can carry 110 to 132 passengers; the 737-700 accommodates 126 to 149 people; the 737-800 can seat 162 to 189 passengers; and the largest model, the 737-900, is capable of carrying 177 to 189 passengers. A convertible freighter version of the 737-700 also is available.

While these new airplanes retain the characteristics that made earlier 737 models so popular -- reliable, simple and economical to operate -- they underwent dramatic revisions including a brand-new wing design, improved fuel capacity and increased aerodynamic efficiency, leading to increased range and speed.

The 737 family's range is approximately 3,200 nautical miles (5,926 kilometers), an increase of up to 900 nautical miles (1,667 kilometers) over earlier 737 models. This allows U.S. transcontinental flights and increases 737 route capabilities throughout the world. The 737 family also can cruise at a maximum altitude of 41,000 feet (12,497 meters) compared to 37,000 feet (11,278 meters) for earlier models. The popular twinjets are powered by new CFM56-7 engines produced by CFMI, a joint venture of General Electric Co. of the United States and Snecma of France. The engines meet community noise restrictions well below the anticipated Stage 4 levels.

The advanced wing design provides an economical cruise speed of 0.785 Mach (937 kilometers/hour), compared to 0.745 Mach (889 kilometers/hour) for earlier 737 models, with sprint capability of 0.82 Mach (978 kilometers/hour).

In addition, advanced-technology blended winglets now are offered as production options on the 737-700 and 737-800 and Boeing Business Jet (based on the 737-700 and 737-800), and as retrofits on the 737-700 and 737-800. Performance benefits include fuel burn reductions of up to 3.5 percent and increased range.

Designers also drew inspiration from the 777, updating the passenger cabin with contoured walls and ceilings that create a spacious feeling and greater stowage capacity than the classic 737s, and placing large liquid crystal displays in the flight deck. Complementing the new 737 flight deck are industry-leading display and flight-management software that promise to reduce flight delays, and enhance safety and flight-crew efficiency. These technologies include Vertical Situation Display, which shows the current and predicted flight path of the airplane and indicates potential conflicts with terrain, and the Head-Up Display (HUD), which provides pilots with "eye-level" flight and safety information.

The 747 is the most prestigious and recognized commercial airplane in the world. From its first flight in 1969, the 747 has been a continually evolving airplane family of superlatives. Today -- as when it was introduced -- it is the biggest, fastest commercial airplane in operation, carrying more people and more cargo than any other commercial airplane.

The 747-400 can fly 416 passengers in three-class comfort about 7,260 nautical miles (13,450 kilometers) and is available in five models. The latest member of the family, the 747-400ER (extended range), offers customers 410 nautical miles (760 kilometers) more range, or 35,000 pounds (15,876 kilograms) more payload. This new derivative features the award-winning Boeing Signature Interior, first introduced on the 777. The 747-400ER, which also is available in a freighter version, increases the 747-400's takeoff weight from 875,000 pounds (396,900 kilograms) to 910,000 pounds (412,770 kilograms). Both 747-400ER models entered service in October 2002.

The 747 freighter fleet provides about half the total worldwide freighter cargo lift capability. And the 747-400 Freighter carries twice as much cargo, twice as the distance of its nearest competitor. In addition, today's 747-400F provides low tonne-kilometer costs, offers significantly lower trip costs than the A380F and accommodates high revenue, outsized loads with its nose door. With its huge capacity, extended range and improved fuel efficiency, the 747-400 offers the lowest operating costs per seat of any commercial jetliner and the lowest ton-mile cost of any commercial freighter.

Boeing is working with customers to develop the next-generation versions of the 747, called the 747 Advanced and 747 Advanced Freighter. These airplanes would offer increased capacity, some 787 technologies and superior economics.

The 757 family includes two passenger models -- the 757-200 and the larger 757-300 -- and a freighter, which is based on the 757-200 fuselage.

Boeing delivered its last 757 in April 2005, concluding a successful 23-year production run. Boeing in late 2003 decided to complete 757 production because the increased capabilities of the newest 737s and the potential of the all-new Boeing 787 fulfill the 757 market's needs. More than 1,000 of the twinjets have been delivered to customers around the world. In the history of commercial aviation, only seven commercial airplane programs have achieved this significant milestone.

The 767 is a larger, two-aisle twinjet. The airplane, which is the most widely used airplane across the Atlantic, is available in three passenger models: the 767-200ER (extended range), with seating for 224 passengers in two classes or 181 passengers in a three-class configuration, with a range of up to 6,600 nautical miles (12,220 kilometers); the 767-300ER, with seating for 269 in two classes and 218 in three classes with a range of 6,105 nautical miles (11,305 kilometers); and the 767-400ER that provides seating for 304 passengers in two classes and 245 in three classes with a range of 5,645 nautical miles (10,450 kilometers). Boeing now offers a new Boeing Signature Interior on all 767 passenger models.

The Boeing 767 family also includes a 767-300 Freighter with 16,034 cubic feet (454 cubic meters) of cargo volume and a range of 3,270 nautical miles (6,056 kilometers). The 767 Freighter is the only 60-ton freighter with international capability.

The 777 is known for its spacious, comfortable interior, industry-leading reliability and unmatched economics, and was designed to fill the size gap between the 767 and 747. The 777-200 twinjet seats 305 passengers in a typical three-class configuration. The 777-200, which was first delivered in May 1995, has a range of up to 5,210 nautical miles (9,649 kilometers).

The 777-200ER (extended range) was first delivered in February 1997. This model is capable of flying the same number of passengers up to 7,730 nautical miles (14,316 kilometers). The 777-300, in service since May 1998, is a stretched version that provides seating for 368 passengers in a typical three-class configuration. It has a range of 5,955 nautical miles (11,029 kilometers).

In February 2000, Boeing announced the launch of two longer-range 777s. The technologically-advanced 777-300ER, which entered service in May 2004, has a range of 7,880 nautical miles (14,594 kilometers) and carries 365 passengers in a three-class configuration. The 777-200LR Worldliner (Longer Range) is the world's longest-range commercial airplane, capable of flying 9,420 nautical miles (17,446 kilometers) and carrying 301 passengers in a typical three-class configuration. The first 777-200LR Worldliner is scheduled to deliver in January 2006.

Responding to strong demand from cargo operators around the world for an efficient, long-range, and high-capacity freighter, Boeing announced authority to offer the Boeing 777 Freighter in November 2004. Bringing unsurpassed efficiency to long-haul markets, the 777 Freighter will fly farther than any other freighter, and will provide more capacity than any other twin-engine freighter. The 777 Freighter will be based on the 777-200LR Worldliner passenger airplane, and is expected to enter service in fourth quarter 2008.

The Boeing Business Jet designed for corporate and VIP applications, is a special, high-performance derivative of the 737-700. The addition of auxiliary fuel tanks provides owners with a business jet platform having a range capability of 6,200 nautical miles (11,482 kilometers). Boeing and General Electric formed the Boeing Business Jets joint venture on July 2, 1996, in response to market demand for a larger, more capable business airplane.

With nearly three times the space of other long-range business jets, the BBJ provides its owners the comfort and freedom to create an environment that exactly matches personal, work and travel preferences, and seating requirements, whether it's for eight or 100 passengers; for private use, corporate, charter or government transport.

The BBJ2, announced in 1999, is based on the 737-800. It has 25 percent more interior space than the BBJ and twice the luggage space. Production of the first BBJ2 began in September 2000 and entered service in February 2002.

More than 82 BBJs are currently in service, with approximately 36 percent based in North America and 64 percent based in Europe, Asia/Pacific, Africa, Latin America and the Middle East.

Boeing also offers its full commercial airplane product line as "Special Purpose Airplanes," available for configuration to customer-selected specifications. In VIP configuration, Boeing jetliners offer high reliability, excellent capability, low operating costs and worldwide technical support.

Government and Military Airplanes: The same qualities that make Boeing jetliners the airplanes of choice for airlines around the world also are important in the airplane selection processes of governments, military organizations and specialized commercial operations. Many of these are offered in partnership with the Boeing Integrated Defense Systems business unit.

For airborne reconnaissance, the 737 airplane serves as the platform for Airborne Early Warning & Control, and the 767 provides the platform for Airborne Warning and Control System, or AWACS aircraft.

Boeing has long been the industry leader in providing refueling capability to the world's air forces with the KC-135 (a 707 derivative) and the KC-10 (a DC-10 derivative). Today, the 767 is the platform for a new tanker that has been selected by Japan and Italy and is under consideration for purchase by the U.S. Air Force.

Boeing also offers its full commercial airplane product line for government and military officials providing high reliability, excellent capability, low operating costs and worldwide technical support.

Commercial Aviation Services: Customers who choose Boeing get more than great airplanes. They get a partner they can rely on to help them succeed. Boeing Commercial Aviation Services deploys the broadest array of support resources to keep customers' airplanes where they should be -- in the air, earning revenue.

Formally established by Boeing more than 65 years ago, the forerunner of Commercial Aviation Services set the standard for delivering the fundamentals of aviation support -- spares, training, maintenance documents and technical advice.

Today the organization has greatly expanded its role and offers many new products, services and integrated solutions that bring enhanced benefits to fleet operators. Improving fleet utilization, reducing costs, leveraging leading-edge information management and ensuring passenger well-being are among the key benefits, all provided through five in-depth capabilities:

Global Customer Support -- Boeing has developed a worldwide infrastructure to support airline schedules, resolve technical difficulties, provide quick access to technical information and deliver vital products and services when and where needed.

At the forefront of the Boeing global support team are the company's field service representatives. Boeing deploys about 330 field service reps in 65 countries. Highly qualified and experienced, they help customers keep their Boeing fleets in safe and profitable service, and they provide timely on-site technical advice, and help ensure a smooth introduction of new Boeing jetliners.

The field service reps can marshal the full resources of The Boeing Company, including the in-depth expertise of service engineering specialists. Service engineers focus on preventing and resolving in-service technical problems. They have access to all commercial engineering data, and they share fleetwide information with customers.

Service engineers and other technical experts staff the Boeing Rapid Response Center to provide technical advice during off hours. In instances when an airplane is out of service, our incident recovery and repair unit is ready to dispatch expert technicians anywhere in the world.

We also offer global facilities to provide fast and convenient access to support products and services. Eight spare parts distribution centers, 21 flight-training facilities and nine component repair centers offer unsurpassed support.

To further improve fleet support, Commercial Aviation Services has developed the air transport industry's most successful business-to-business Web portal, MyBoeingFleet. Airlines daily transact a wide range of business via MyBoeingFleet -- ordering spare parts, retrieving technical drawings and service bulletins, collaborating on technical issues, sharing fleet data and even filing warranty claims.

Material Management and Spares -- Boeing operates the aviation industry's most comprehensive spare-parts sales and distribution network, maintaining inventory for about 500,000 different types of parts to support the worldwide fleet.

Distribution centers in Seattle, Los Angeles, Atlanta, Singapore, Beijing, London, Dubai and Amsterdam serve customers worldwide. An advanced computer system links the centers, providing up-to-the-minute inventory control.

The Boeing spares network has set an industry standard with fast, next-day shipment service on routine orders, making it possible for customers to reduce their inventory levels. For critical and AOG orders, shipments from inventory are prepared in four hours or less. Shipments can be sent straight to the customer's door via Boeing Direct or Boeing Express -- alternative delivery services operated in conjunction with UPS and Federal Express, respectively.

Boeing processes about 1.8 million shipments of spare parts annually. For speed and convenience, customers may place orders and track shipments through the Boeing PART Page, which is linked to the MyBoeingFleet Web portal.

To further improve logistics support, Boeing offers services for the repair, overhaul and exchange of avionic and hardware components. Boeing also offers materials management solutions to customers under the Integrated Materials Management (IMM) program, which relieves airlines of the burden of purchasing, inventory management and logistics of expendable aircraft parts. IMM lets airlines avoid the cost of holding inventory and eliminate spare-parts obsolescence.

Maintenance and Engineering Services -- Commercial Aviation Services develops, manages and delivers the vast amount of technical information needed for fleet maintenance and engineering support. Much of this information is contained in reference manuals customized for each operator.

The services organization has helped lead the industry in converting from paper and microfilmed manuals to all-digital formats, saving time, improving accuracy and reducing the need for storage facilities. This digitized information is available on MyBoeingFleet.

Boeing has pioneered specialized digital tools, including software offerings that help speed airplane troubleshooting and manage the entire maintenance process. Airplane Health Management, for example, is an integrated family of information products and services that collects, monitors and analyzes airplane data on in-service airplanes, allowing for faster repairs and, in many cases, the ability to predict faults and prevent equipment failures before they occur.

Other maintenance offerings also include technical training through Alteon, our training subsidiary. Alteon provides comprehensive learning programs for maintenance technicians, supported by computer-based training aids, simulators and on-site sessions at customer locations.

We also help airlines modernize their maintenance programs, and we design ground support equipment, apply human-factors research to reduce maintenance errors, conduct a variety of maintenance-related consulting services and studies, and offer periodic maintenance seminars to help airlines improve proficiency.

In addition, two Boeing subsidiaries play important roles in aviation maintenance: Continental DataGraphics provides customized documentation to airlines, including parts catalogs and digitized information, and AeroInfo Systems develops advanced software to manage maintenance activities.

Fleet Enhancements and Modifications -- With full access to all of the engineering data used in the design of Boeing and Douglas jetliners, Commercial Aviation Services can help airlines change aircraft configurations, enhance fleet performance and improve cabin amenities.

Our modification engineering staff can oversee passenger-to-freighter conversions by providing design, engineering and project management expertise while partnering with some of the industry's best-known modification centers. With our expertise in large-scale systems integration, we offer avionics upgrades that include the engineering, design, parts and integration manuals as well as customer support. Our offerings also include other upgrades in the airframe, propulsion and systems areas.

For improved passenger appeal, we can manage fleetwide programs to integrate new in-flight entertainment retrofit products. We oversee all testing, installation and certification. We also offer retrofit kits for interior upgrades and modifications.

Commercial Aviation Services has taken a leading role in developing improved security features for the world fleet. New flight-deck doors that meet the latest security requirements are available for all Boeing and Douglas-designed aircraft. In fact, Boeing was the first commercial airplane maker to receive Federal Aviation Administration door certification for its entire line of aircraft.

Flight Operations Support -- Commercial Aviation Services provides full support for airline flight operations , including innovative information-management solutions and a global training network . Offerings include flight technical publications such as flight manuals, dispatch deviation guides, master minimum equipment lists, and other related documents, many of which are available through MyBoeingFleet. We also provide flight operations engineering support, along with simulator data support.

We have taken a leading role in harnessing digital technology for improved flight-deck management. In addition, Commercial Aviation Services is a key player in Boeing's overall effort to e-enable the air transport system, working to integrate all the information generated in the air transport enterprise. Our solutions will help pilots, maintenance crews and airline operations centers share vast stores of information seamlessly and in real time. Boeing subsidiary Jeppesen, world leader in air navigational charts, is a major contributor to this project.

Boeing has long provided training to help airlines introduce new airplane models. Since 1994 this service has been offered at one of the industry's most modern training facilities, the Boeing Training Center in Seattle.

Boeing greatly expanded its training services in 1997 through a joint venture that created the world's largest airline training network. Today it is a wholly owned Boeing subsidiary known as Alteon. Alteon combines the Boeing Training Center in Seattle with 20 other facilities worldwide. These assets include advanced computer-based training systems and more than 70 full-flight simulators.

Alteon offers initial and recurrent training on Boeing and non-Boeing airplanes in the 100-seat-and-above airliner market. Course offerings cover a wide range of flight and maintenance training, as well as safety training for cabin crews.

Boeing Aircraft Trading: The Boeing Company is the world's largest aerospace company, and the largest producer of commercial jetliners. Since 1997, with the establishment of Boeing Aircraft Trading, Boeing also is the world's leader in previously operated aircraft.

Boeing Aircraft Trading sells and leases Boeing-owned aircraft acquired through trades, lease returns and other mechanisms, as well as aircraft from the secondary market that meet Boeing's high standards. Boeing Aircraft Trading serves operators who must expand their fleet immediately, or who are not currently in a position to purchase brand-new equipment.

Boeing Aircraft Trading offers access to the industry's most comprehensive list of previously operated aircraft. Available airplanes include a wide variety of currently produced Boeing models that have ceased production, and some quality equipment from other manufacturers. The list of Boeing's current offerings is available on the World Wide Web.

Every airplane offered by Boeing Aircraft Trading is fully backed by Boeing and has met its high standards of quality and reliability. Boeing Aircraft Trading will not sell or lease any airplane without a complete service record to ensure that the airplane has been properly maintained according to the manufacturer's specifications and service bulletins, and that it carries only authorized, documented parts.

In addition, before Boeing Aircraft Trading accepts each airplane, it is subject to rigorous physical inspection and testing by a team of Boeing experts.

Boeing Aircraft Trading is an example of the Boeing commitment to provide creative and dependable solutions to its customers worldwide. These solutions are enhanced with crucial support services, such as working with customers to meet their specific needs in airplane modification, spare parts, crew training, complete product support and financing.

Boeing Aircraft Trading is uniquely suited to servicing the world market for previously operated aircraft. The Boeing Company always has been committed to its new airplane customers throughout the cycle of its products -- from design to delivery and well beyond -- and to working with customers to keep Boeing products flying safely and efficiently until the day the aircraft is taken out of service, often decades later. Providing the same level of long-term support is a guiding principle behind Boeing Aircraft Trading.

Boeing corporate citizenship: Boeing corporate citizenship is aligned with our presence in communities around the world and demonstrates our commitment to improving the quality of life. Outside of the U.S. our focus is on health and human services and primary and secondary education. Within the United States our focus is in the area of education, specifically early learning through 12th grade and higher education; health and human services; arts and culture; and civic and environment. The global contributions of Boeing and its employees exceeded $96 million in 2003, including corporate contributions of $62.6 million, with over $14 million in in-kind investments. In addition to corporate charitable investments, our employees contribute to their local communities by participating in volunteer programs, gift matching programs, and the Employees Community Fund of the Boeing Company. ECF is the world's largest employee-owned charitable organization of its kind, investing nearly $34 million per year in communities we call home."

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