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Overview

Last Updated: November 2007

Boeing and China have a history of more than 90 years. In 1916, the first engineer hired by Boeing, to design the Model C bi-wing airplane, was Beijing-born Wong Tsu. Subsequently Mr. Wong returned to China, playing an important role in early Chinese aviation.

Boeing has worked together successfully with modern China for 35 years. Since 1972, Boeing has longstanding relationships with Chinese airlines, the Chinese aviation industry, the Civil Aviation Administration of China (CAAC) and the Chinese government. Boeing supports Chinese efforts to ensure a safe, efficient and profitable Chinese aviation system to keep pace with the country's rapid economic growth. Commercial aviation is crucial to China's economic growth, and Boeing provides the world's best airplanes to China.

Boeing is pleased to have been invited to help Chinese companies develop skills, achieve certification, and join world aviation and supplier networks. China has an increasingly sophisticated and expanding part to play in the commercial aviation industry and has a role on all of Boeing commercial airplane models -- 737, 747, 767, 777 and the newest and most innovative airplane, the 787 Dreamliner. China builds horizontal stabilizers, vertical fins, the aft tail section, doors, wing panels and other parts on the 737; 747 trailing edge wing ribs; and 747-8 ailerons, spoilers and inboard flaps. China also has an important role on the new 787 Dreamliner airplane, building the rudder, wing-to-body fairing panels, leading edge and panels for the vertical fin, and other composite parts.

Since the 1980s, Boeing has purchased more than US$1 billion in aviation hardware and services from China. Today, Boeing and Boeing supplier partners have active supplier contracts with China's aviation industry valued at well over $2.5 billion. Today, there are more than 4500 Boeing airplanes flying throughout the world with parts and assemblies built by China.

China is the first conversion location for the new 747-400 Boeing Converted Freighter. Many parts and assemblies are built in China. Conversion, test and certification are performed in China and airplanes are delivered from China.

Boeing equity investment in China is considerable, and Boeing procurement from China is significantly greater than other aviation companies. In fact, Boeing is China's aviation manufacturing industry's largest foreign customer. But the most critical Boeing investment in China is training, particularly safety, aviation quality practices, business and executive training, as well as technical support.

In cooperation with Chinese airlines, CAAC and industry, Boeing has provided enhanced professional training to more than 37,000 Chinese aviation professionals since 1993, including pilot techniques, flight operations, maintenance engineering, regulatory, air traffic management, executive management, airline management and airline marketing, manufacturing, quality assurance, finance and industrial engineering, at no charge to China. Emphasis is on quality and safety.

Boeing is a leader in creating the U.S.-China Aviation Cooperation program, an initiative of U.S. government and American aviation companies, working with CAAC and airlines to help advance China's commercial aviation.

Boeing works with three Chinese universities on wireless communication R&D.

Boeing is recognized as an industry leader in supporting a strong and robust U.S.-China trade relationship. Boeing successfully promoted U.S. approval of China's accession to the World Trade Organization and congressional approval of normal trade relations between the United States and China. Given the company's dedication to the success of the U.S.-China economic relationship, Boeing remains committed to demonstrating the value of bilateral trade and advocating its continued growth.

The Boeing Company is a global enterprise, the world leader in aerospace and a partner in China's aviation industry. Boeing continues to increase its presence, investment and multifaceted commitment to China. Boeing is also committed to helping ensure safe, advanced commercial aviation in China, and Boeing looks forward to expanding cooperation and partnership.

Boeing and China-the Early Years

Ties between Boeing and China began early. In 1916, the year of the company's founding, William E. Boeing hired Beijing-born Wong Tsu to design a new seaplane, the Model C, for the U.S. Navy. Wong had recently graduated in aeronautical engineering from Armstrong Technical College in London and Massachusetts Institute of Technology in Boston. His work with The Boeing Company laid the groundwork for a generation of early airplanes.

China is not only distinguished in Boeing history for having contributed its first engineer hired by the company. In 1935, China became the first country outside the United States to receive a Boeing field service representative. The representative, Nemo Poncetti, helped with P-26 airplanes.

On March 29, 1939, Pan American Airways began trans-Pacific service to Hong Kong using Boeing 314 Clipper seaplanes. North American Aviation provided basic trainer airplanes to China in the 1930s, and a number of Douglas Dolphins, DC-2s and DC-3s operated in China in the 1930s and 1940s.

Boeing and China-the Jet Age

On February 21, 1972, the world watched as President Richard Nixon landed in the People's Republic of China aboard Air Force One, a Boeing 707 marking the dawn of a new era. That same year, the CAAC ordered 10 Boeing 707s, establishing it as a major world airline.

After normalization of relations between the United States and China in 1979, then-Vice Premier Deng Xiaoping flew to Washington, D.C., for a state visit. He also visited Seattle to tour the Boeing 747 line. More orders followed in the 1980s.

In November 1993, then-President Jiang Zemin visited Boeing and helped the company set a new course in China, with emphasis on training, safety and expanded cooperation, as well as on providing China with modern airplanes.

In April 2006, President Hu Jintao addressed employees at the Boeing Everett, Wash., factory, saying "Boeing's cooperation with China is a vivid example of the mutually beneficial cooperation and win-win outcome that China and the United States have achieved from trading with each other."

Today, Boeing jets are the mainstay of China's air travel and cargo system.

China's Boeing Fleet

As of fourth quarter 2007, 675, or 57 percent, of the 1180 commercial jetliners operating in China were Boeing airplanes (B and MD models); 390, or 33 percent, were Airbus; and 115, or 10 percent, were from other manufacturers. (The China fleet excludes aircraft from Hong Kong and Macao, consistent with the CAAC's accounting.)

China Orders and Outlook

Airplane Orders

China contracted 120 orders in 2005; 112 in 2006 from eight Chinese airlines; and in 2007, Chinese airlines announced orders for 80 Next-Generation 737s and six 777 Freighters. (Statistics exclude aircraft from Hong Kong and Macao, consistent with the CAAC's accounting.)

Boeing forecasts that over the next 20 years that 28,600 new commercial jet aircraft will be needed worldwide; 3400 are forecasted for China.

Boeing China Current Market Outlook (CMO)

China is the world's most dynamic market. The number of Chinese passengers traveling by air has more than doubled since 2000. Over the next 20 years (2007 - 2026), Boeing forecasts that:

• Chinese airlines (including Hong Kong and Macau) will need nearly 3,400 new airplanes. China's fleet will grow from 1,150 airplanes in 2006 to 4,460 airplanes by 2026, nearly quadrupling in size.
• Boeing anticipates that China will account for more than ten percent of the world wide jet aircraft demand over the next 20 years.
• Spending on China's infrastructure will soar.
• China will continue to lead the world in forecasted economic growth. The 20-year China economic gross domestic product (GDP) forecast of 6.6 percent per year is the highest in the world and is more than double the world GDP forecast of 3.1 percent.
• China's aviation sector will grow even faster than its economy, and China's air travel growth will significantly outpace that of other world regions. Air travel for China's carriers will expand significantly, led by the domestic market's average annual growth of 8.8 percent. Air travel for all airline markets to, from and within China is forecasted to grow 7.4 percent per year.
• Chinese air carriers will add about 300 freighter airplanes by 2026.

Boeing Investment in China

1. 1. Industrial Cooperation
2. 2. Several Ventures and Facilities
3. 3. Support to the Civil Aviation
4. 4. Training, Technical Assistance and Support, Technology

Boeing has significant investment in China, beginning more than 30 years ago. There are many types of investments, such as procurement, equity, facilities, joint ventures, alliances and training. Boeing equity investment in China is considerable, and Boeing procurement from China is significantly greater than other aviation companies. But the most important investment, the investment of which Boeing is most proud, is the investment in professional training. Boeing focuses especially on training in and transferring of aviation safety, operations and quality standards technology.

1. Industrial Cooperation

Supplier Contracts and Procurement Values

• Since the 1980s, Boeing has purchased over US$1 billion in aviation hardware and services from China.
• The new work for 737, 747-8 and 787 contracted in June 2007 is valued at about US$500 million.
• With these new contracts signed in June 2007, Boeing and Boeing supplier partners have active supplier contracts with China aviation industry valued at well over US$2.5 billion (18 billion CNY).
• There are 4500 Boeing airplanes with parts and assemblies built by China flying throughout the world today.
• Boeing works with the U.S. government to obtain the necessary export approvals for work with China supplier contracts comply with U.S. and Chinese export regulations.
• Chinese suppliers have proven their ability to deliver high-quality products, on time and at competitive prices. They have earned their place as supplier partners.
• Boeing procurement from China is significantly greater than other aviation companies. In fact, Boeing is China's aviation manufacturing industry's largest foreign customer.

Note: It is Boeing policy not to provide annual procurement numbers

Procurement History

• Boeing manufacturing training, raw materials, and parts (mid 1970s).
• MD-80/90 nose sections, landing gear doors, horizontal stabilizers (contract 1979, last delivery 1999).
• 737, 747 machined parts (1980 - 1992).
• 737 Classic vertical fin (1984; 600 units delivered), horizontal stabilizer, forward access door (1982) in Xi'an (1982 - 1999).
• 757 empennage (vertical, horizontal, tail section) in Chengdu (1995 - 2004).
• 757 cargo doors in Shenyang (1989 - 2004).
• TAECO in Xiamen: 737NG elevator retrofit modification program (2002 - 2003).

Airplane Production in China

In 1985, a license agreement was signed by McDonnell Douglas Corporation (MDC) to assemble MD-80-series airplanes in Shanghai. At the time, this was one of the largest cooperative projects between a US company and China and it was the first program to co-produce Western airplanes in China. The airplanes were assembled from kits provided by MDC with selected components fabricated in China. MDC provided technical data, training, and on-site assistance. Thirty-five airplanes were produced between 1985 and 1994: thirty were delivered to Chinese airline customers (China Northern and China Eastern) and five were exported to the US and sold to TWA. All airplanes were produced under an extension of Douglas Aircraft Company's FAA Production Certificate.

A follow-on contract (commonly referred to as the "Trunkliner" program) was signed in 1992 to co-produce forty MD-80/MD-90 aircraft. This new agreement called for a significant increase in Chinese work content with the goal of eventually producing up to 80% of the airframe in China. The contract was amended in 1994, changing the model-mix to 40 MD-90's (twenty produced in Long Beach, 20 produced in China). The Long Beach-produced airplanes were delivered to China Northern and China Eastern between 1998 and 2000. After the merger between MDC and Boeing, the contract was amended again in 1998 to reduce the number of China-produced MD-90's from twenty to two. These two airplanes were delivered to China Northern in 2000.

Boeing's approach has been to build on the experience of airplane assembly in Shanghai by expanding the depth and breadth of its commercial aviation industrial cooperation with China. Today, China has a role on all Boeing commercial airplanes, benefiting both the Chinese economy and Boeing.

Current Work Packages and Procurement at Chinese-Owned Factories or Multinational Ventures

• Baoji Group Ltd. in Shaanxi Province, titanium ingot, plate and sheet (2006 contract)
• BHA Aero Composites Manufacturing Co., Ltd., a Boeing joint venture, in Tianjin
  • Interior parts, secondary composite structures for 737, 747, 767, 777 and 787 (beginning in 2002).
  • 737 composite panels and parts (flight deck, close out panels, dorsal fin, wing-to-body fairing, cover panels, wing fixed trailing edge, wing fixed leading edge, interior panels).
  • 747 miscellaneous composite panels, door liners, fixed trailing edge.
  • 767 and 777 wing fixed tailing edges and dry bay barriers; empennage panels.
  • 777 flight deck interior panels.
  • 787 trailing edge panels for the vertical fin (contracted 2005); additional panels (2007).
  • 787 wing to body fairing supplier assistance
  • 787 vertical fin trailing edge panels
• Chengdu Commercial Aircraft
  • 787 rudder, single source (contracted 2005, first parts delivery 2006, first full rudder 2007).
  • 737 forward entry doors (since 2005), contracted with Vought; beginning 2008 contract is with Spirit.
  • 737 overwing exit doors (since 2005), contracted with Vought; beginning 2008 contract is with Spirit.
  • 747-8 ailerons and spoilers, single source (contracted 2007, first delivery in 2009).
  • 747-8 horizontal stabilizer parts and subassemblies (contracted 2007 with Vought).
• Hafei Aviation Industry Co., Ltd., (HAIC) in Harbin
  • 787 upper and lower panels for wing-to-body fairings (2005 contract), first delivery 2007, single source.
  • 787 vertical fin parts (contracted 2007).
  • 787 tier III detailed parts, first delivery 2008.
• Hong Yuan (HYFC) in Sanyuan, titanium forgings, 12 for each 747 plane (since 1984).
• Shanghai Aviation Manufacturing Factory (SAMF)
  • 737 NG horizontal stabilizers (contract 1995; over 1200 ship sets delivered).
• Shenyang Commercial Aircraft
  • 787 vertical fin leading edge (contracted in 2005, first delivery 2007), single source.
  • 737 aft fuselage subassemblies (1996/2001), expanded to include "Texas Star" (November 2004); contracted with Spirit, expanded to full aft section 48 (2007).
• Southwest Aluminum in Chongqing, aluminum forgings, four for each 747 plane (since 1988).
• Quick Electronics in Beijing, PC, print hardware, servers in support of Boeing IT hardware in Asia (1997 contract).
• Taikoo Aircraft Engineering Co., Ltd. (TAECO), a Boeing joint venture, in Xiamen.
  • Parts, subassemblies and touch labor 747-400 Boeing Converted Freighter (BCF) modification program (2004-2010).
• Xi'an Aircraft Industrial Company (XAIC)
  • 737 NG vertical fin (1995; 1000 delivered).
  • 747-400 fixed trailing edge wing ribs (contract 1996, more than 550 ship sets delivered), single source.
  • 747-8 fixed trailing edge wing ribs (contract 2007), first delivery 2008.
  • 747-8 inboard flaps (contracted 2007); first delivery in 2009.
  • 747 floorbeams and detailed parts and subassemblies for Boeing Converted Freighter (contracted in 2004). Center for floor beam excellence.

China Has a Unique Role on the New 747 Boeing Converted Freighters (BCF)

• China is the first location for conversion of 747 airplanes to the new 747-400 BCF airplane conversion, testing and certification are all done in China, and deliveries are from China.
  • This is a new Boeing program for modifying older 747 airplanes into Boeing Converted Freighters. Boeing engineers and designs the BCF, plans each modification, and provides warranties and follow-on customer support,
  • Xi'an builds the floorbeams, detailed parts and small assemblies. TAECO, in Xiamen, builds detailed parts and subassemblies. Boeing contracts with TAECO for the labor. TAECO is a joint venture in which Boeing is a partner.
  • In 2005, the first 747-400 BCF was completed in Xiamen, tested by Boeing, certified by the FAA and delivered in December.
  • As of February 2008, 20 747-400 BCFs have been delivered from Xiamen.
  • Major conversion of large airplanes is a highly technical, sophisticated and growing business.

China's Special Role on the New 747-8 Airplane

For the first time, China will build flaps, ailerons and spoilers for Boeing airplanes.

• Xi'an builds 747-8 inboard flaps, single source (contracted 2007). The 747-8 inboard flaps are the largest piece of aircraft structure Boeing purchases from China.
• Xi'an builds 747-8 fixed trailing edge wing ribs.
• Chengdu builds 747-8 ailerons and spoilers, single source (contracted 2007).
• Chengdu builds 747-8 horizontal stabilizer parts and subassemblies (contracted 2007 with Vought).
• BHA (a Boeing joint venture) provides composite parts and panels.

Important Role on New 787 Dreamliner Airplane

• June 2004, Boeing announced China has an important role on the 787. Supplier contracts were signed in 2005. In June 2007, additional parts and panels were contracted.
• Chengdu, rudder.
• Hafei in Harbin, upper and lower wing-to-body fairing panels, vertical fin parts.
• BHA (a Boeing joint venture), trailing edge and other panels for vertical fin.
• Shenyang, vertical fin leading edge.
• For the first time, Chinese factories selected as exclusive, single-source providers.
• For the first time, Boeing is counting on China to build essential composite structures for passenger airliners.
• For the first time, AVIC II is engaged in a Boeing commercial airplane program.
• For the first time, Boeing introduced its worldwide suppliers to China's factories, updating them on China's capabilities and strengths, and encouraging them to engage with Chinese industry.
• The value of the 787 rudder, wing-to-body fairing, and vertical fin leading edge work in China could reach several hundred million dollars over the lifetime of the 787 program.

Significant and Expanding Role With Boeing Supplier Network

Boeing encourages the Boeing global supplier network to engage with China. As a result, China has a very significant, expanding role in the Boeing supplier network, at all levels.

• Cytec Engineered Materials is building an aerospace composite materials production-facility in Shanghai. It will be operational in late 2008. Initially it will supply carbon fiber epoxy pre-preg material for commercial transport programs throughout the Asia Pacific region.
• Fischer Advanced Composites Company (FACC) (at BHA).
• Fokker-Elmo, working with Boeing Electrical System Responsibility Center, delivers 99 part numbers to the 737 and 142 to the 777 airplane programs. This work is accomplished in their facility in Langfang, Hebei Province where they employee 504 employees working on Boeing, Pratt and Whitney and other company's electrical products. They are expanding their facility and will soon have double their current capacity.
• General Electric procurement from Harbin, Shanghai, Xi'an, Sichuan, Suzhou, Guizhou, Shenyang.
• Goodrich CF34 fan cowl (at BHA, 2003). Contracted in 2008 with Hongdu Aviation in Nanchang to build 787 part kits for 787 nacelle.
• Hamilton Sundstrand Qinling Aerospace (Xiamen) Ltd. is a joint venture between Hamilton Sundstrand USA (65 percent) and Shaanxi AeroElectric Company Ltd. (35 percent) in Xiamen. It provides overhaul repair services for Hamilton Sundstrand electric power systems to airlines in China.
• Korean Aerospace Industries (KAI) buys 737 parts for vertical fin, horizontal stabilizer, from SAIC, XAC and BHA (2006).
• Parker Hannifan, machining with Jincheng Corp., Shanghai Qi Yi Automotive, Sichuan Golden Dragon Machine.
• Pratt & Whitney, engine components, Xi'an and Chengdu.
• Primus International in Suzhou, factory ground-breaking 2004, airplane components.
• Rolls-Royce, procurement from several locations including Xi'an, Shenyang.
• Snecma, CFM56 engine blades, joint venture in Guiyang.
• Smith Aerospace, Suzhou; engine parts, flight controls.
• Spirit Aerospace, 737 section 48 from Shenyang.
• Vought, 737 overwing exits and forward entry doors, 747-8 horizontal stabilizer parts and subassemblies from Chengdu.

2. Several Ventures and Facilities

• Taikoo Aircraft Engineering Co., Ltd (TAECO), Xiamen is a joint venture for aircraft heavy maintenance, modification and repair. Boeing has a 9 percent interest in TAECO. Boeing has placed contracts with TAECO for parts and touch labor for 747-400 BCF conversions. In 2007, TAECO began its first 737 Classic airplane Passenger to Freighter conversion. TAECO has more than 5,000 employees.
• BHA Aero Composites Co, Ltd, in Tianjin, is a joint venture of Boeing, Hexcel and AVIC I for secondary composite structures and interior parts. First deliveries started in 2002. Boeing has a 40 percent interest in BHA. BHA customers include Boeing, Hexcel, Fisher and Goodrich BHA provides components for 737, 747, 767, 777 and 787 airplanes. BHA also provides assistance to Chinese supplier factories. It has over 570 employees.
• Alteon, a wholly owned subsidiary of The Boeing Company, has opened a new training center in Shanghai. It houses a 757/767 flight simulator. It will house the first Boeing 787 full-flight simulator in China in partnership with Shanghai Airlines. The 787 simulator will be ready in the first half of 2008.
• Alteon, through its partnership with Mil-Com Aerospace Pte Ltd., a company with roots in Singapore, has established maintenance training in a new training center in Tianjin in conjunction with the Civil Aviation University of China (CAUC). It provides comprehensive maintenance training to ATA level 104 standards for Boeing fleets.
• Spares Service Center, in Beijing, is a world-class center for logistics support. The Spares store was elevated to a service center in 1994.
• Boeing Shanghai Aviation Service Co., Ltd. (BSAS) is China's newest MRO. It marks its one-year anniversary in fall 2007. It is a joint venture located in at Pudong International Airport in Shanghai. BSAS is expected to perform passenger-to-freighter conversions, upgrades to interiors, avionics and entertainment systems; line maintenance; and heavy maintenance checks. Construction of the facility has begun and will be finished in two years. Of the $85 million stated investment, Boeing holds 60 percent, Shanghai Airlines holds 15 percent, and Shanghai Airport Authority holds 25 percent. It has over 120 employees.
• Aviall, a subsidiary of The Boeing Company, has an office in Beijing. Aviall is a leader in integrated materials management.
• Boeing China office in Beijing.

3. Support to the Civil Aviation

China faces unique challenges in developing its infrastructure that will permit continued air transportation growth. Since 1993, Boeing and CAAC have worked together on a series of initiatives supporting the development of China's aviation infrastructure while improving safety, reliability and efficiency and increasing capacity, profitability and management skills. Boeing and CAAC also work together for safe and efficient global air transportation.

Operational Safety

• Boeing fosters a close working relationship between the CAAC and FAA, and the FAA has done an outstanding job of working with the CAAC in support of the development of the CAAC's regulatory capabilities.
• Boeing directly supports the CAAC's development of ICAO-compliant aviation laws for China, civil aviation regulations and related guidance material.
• Boeing directly supports the development of the 10-year safety enhancement plan for the CAAC Flight Standards Department.
• Boeing sponsors a variety of CAAC and airline training programs targeted at the implementation of ICAO-compliant regulations and guidance material.
• Boeing provides China's airlines and CAAC with management training.
• Boeing worked with the CAAC to develop an FAA-style training center for flight and maintenance inspectors. Boeing sponsored a U. S. Trade Development Agency grant to fund the development of the initial training course, and works with the CAAC and the FAA on the development of the training curriculum.
• Boeing supports and participates in the International Civil Aviation Organization (ICAO) Cooperative Development of Operational and Safety Continuing Airworthiness Program, North Asia (COSCAP-NA). The company provides technical and financial support of training maintenance and operations inspectors, expanding regulatory guidance material and supporting ATM and airport development.

Air Traffic Systems (ATS)

• Since 1993, the Boeing/CAAC Joint Air Traffic Services task team has worked together to achieve significant safety and capacity improvements, extensive training and route development, improved and redesigned airspace, airport studies, simulation and modeling services This has led directly to (1) opening new international air routes across China, (2) Beijing Capital Airport contracts to study terminal maneuvering area and ground operations, and (3) long-term planning for China's modernization and growth of airspace and airports. Boeing works with the CAAC on advanced air traffic systems to enhance China's air traffic system and economics.
• Boeing supports CAAC's high-altitude airport operation project at Ali.
• Boeing support CAAC's development of ADS-B implementation plans in support of CAAC's 20-year plan.

Required Navigation Performance (RNP)

• Required Navigation Performance (RNP) is the cornerstone of performance-based airspace operation. By integrating airplane system performance and onboard computing capability with flight procedure design and airline flight operations, RNP operation results in reliable, repeatable and predictable flight paths with unprecedented accuracy and integrity without dependence on ground-based navigation aids.
• Boeing is a pioneer in RNP/RNAV and teamed with CAAC and Air China in 2004 in a successful RNP demonstration at Lhasa Gongga airport, with three world firsts: first 757 RNP flight, first RNP flight at airport with elevation over 11,000 feet; and first RNP flight in Asia.
• In May 2007, Boeing in cooperation with China Eastern Airlines, CAAC and the FAA, completed a 737-700 RNP flight into Linzhi airport in Tibet, helping to further open the door for revenue flights into Linzhi.

4. Training, Technical Assistance and Support, Technology

• Boeing provides technical expertise and international operational experience in aviation safety, efficiency, reliability and quality to Chinese airlines, regulatory authority and industry. This technology transfer helps ensure flight safety, reliability and efficiency, and the production of safe, high-quality airplane hardware.
• In cooperation with Chinese airlines, CAAC, and Chinese industry, Boeing has provided enhanced professional training to more than 37,000 Chinese aviation professionals since 1993, including pilot techniques, flight operations, maintenance engineering, regulatory, air traffic management, executive management, airline management and airline marketing, manufacturing, quality assurance, finance and industrial engineering, at no charge to China. Emphasis is on quality and safety.
• This training and other infrastructure development from represents several hundred million dollars worth of value to China's commercial aviation industry from 1993 to 2006.
• Since placing large assembly contracts in China in 1980, Boeing has had resident teams in China contributing directly to training and technical assistance and support of Chinese factories.
• Boeing works with the U.S. government to obtain necessary export approvals for work and support in China. Boeing is compliant with U.S. and Chinese export laws and regulations.
• Thirty-eight field service representatives, in 14 cities, provide on-site technical support and 24-hour full service technical support.
• On-line maintenance, engineering and flight operations data with MyBoeingFleet.com.
• Customized training, technical assistance and support for Chinese airlines provided by 11 resident instructor pilots, flight operations and maintenance engineers in Beijing, plus support from Seattle.
• Each Chinese airline has instructor pilots, for each model, trained by Boeing. In addition, in 2004, Boeing initiated a program for comprehensive 737 training for more than 100 pilots and ground school instructors at airlines, free of charge.
• Startup airline support, high-altitude airport support.
• Jeppesen, a Boeing subsidiary, provides navigation, weather data and electronic flight bags.
• Aviation safety programs, human factor training, regulatory development support, airplane performance and flight operations training, flight technical services, maintenance evaluation, training and consulting
• Marketing and business development are key components to Boeing's continual support and consulting for Chinese airlines. Examples are helping to identify airline market demand; analyze routes, networks, operating efficiency and profitability; define future growth opportunities; recommend market development; and validate business plans including fleet plans, routes and solutions.
• Boeing, in partnership with the Washington Center for Internships and Academic Seminars, is funding a three-year fellowship program beginning in 2008. There will be 60 "Boeing Fellows" in all -- 20 per year, with interns divided equally from the US and China.

Executive Development Programs

• Senior executive development program in U.S. and China for CAAC and airlines began in 1998 and continue today.
• Annual senior executive development programs for AVIC I and for AVIC II.
• The Boeing-Masters in Business Administration (MBA) program is a major long-term educational investment in the China. The purpose is to help improve the industry management level. Since its inception in 2003, Boeing MBA program has supported eight cohorts of total 318 middle and junior level managers from NDRC (National Development and Reform Commission), CASGC (China Aviation Supplies Import and Export Group Corporation), CAAC and Chinese airlines in their pursuits of an MBA degree under the Boeing concept of "Working Together." The first four cohorts of total 155 have graduated while two more classes of 80 will be opening in 2008.

U.S.-China Aviation Cooperation Program (ACP)

• Boeing is a leader in this partnership of CAAC, the U.S. government, and American aerospace firms, which began in 2004.
• Boeing organizes and invests in ACP executive management training for Chinese maintenance, engineering, flight operations and regulatory personnel.
• Boeing is a key contributor to the energy conservation seminars, flight standards programs, management and many other training programs.

Technology and University Relations

• Technology acquisition.
• In 2007, Boeing entered into agreements with three universities in China -- Tsinghua University in Beijing, Southeast University in Nanjing, and the Hong Kong University of Science and Technology -- to develop new wireless communications technology for commercial applications. The focus of the work by the universities is on providing technologies that will benefit onboard entertainment systems for Boeing commercial airplanes and communication among maintenance technicians at airports. Boeing coordinates the development work, which is carried out by Chinese professors and university students who are pursuing advanced degrees.
• University, technical institute and association relations and exchanges.
• Alteon Training, a subsidiary of The Boeing Company, inaugurated a maintenance training center in Tianjin in December 2005. Located on the campus of the CAUC, the training center delivers maintenance training to university students, airlines and MRO employees. Mil-com Aerospace Pte, Ltd., Alteon's Singapore-based partner, manages the center, bringing not only Alteon courses, but its own technical courses was well as Jeppesen Flight Operations Management programs to support China's growing aviation training requirements.
• Students at CAUC in Tianjin have access to MyBoeingFleet.com.
• Civil Aviation Flying University of China (CAFUC), Guanghan, has two 737 simulators, instructor-pilot training, and curricula, all provided by Boeing. Every year, Boeing provides professional mentoring evaluation, a senior management development course, a safety and accident investigation course, curricula evaluation, and customized support and has helped CAFUC become a key pilot training center for Chinese airlines.

Boeing China

Boeing China, Inc, is based in Beijing. It includes representatives of Boeing organizations such as Government Affairs, Commercial Airplane Sales, Marketing, Business Development, Commercial Aviation Services, Alteon, Jeppesen and Communications. Boeing Capital has an office in Hong Kong. There are 160 Boeing employees in China, and more than 5800 employees at Boeing-related businesses (subsidiaries and joint ventures).

The Boeing Company

The Boeing Company is the world's leading aerospace company and the largest manufacturer of satellites, commercial jetliners and military aircraft. The company is also a global market leader in missile defense, human space flight and launch services. Boeing is the largest U.S. exporter. Total company revenues for 2006 were $61.5 billion.

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