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Frontiers December 2013—January 2014 Issue

of its MD-11 converted freighters with a United Kingdom–based cargo firm flying in Africa despite a soft global cargo market. With the exception of one remaining MD-11 freighter, as of late 2013 all of Boeing Capital’s more than 240 portfolio airplanes are committed to customers. Sometimes Boeing’s used airplanes can help customers out in a pinch or longer. A 767-300ER (Extended Range) was deployed on short notice this summer to Ethiopian Airways as “interim lift” after one of its new 787 Dreamliners was damaged at London’s Heathrow airport. “It took less than two weeks from when we got the request until the plane was in Addis Ababa,” said Thomas Hansen, who leads Boeing Capital’s asset management group responsible for aircraft redeployments. “There were modifications involved, and the customer and outside companies helped us make it happen.” Trading also takes place when Commercial Airplanes accepts used planes in sales campaigns where Boeing faces aggressive competition. “The trade-in business is cyclical, and it’s been busier lately,” said Michael Murray, who has supported the aircraft trading process at Commercial Airplanes for 12 years. “A lot of customers want to take advantage of the new technology and fuel-efficient products we have available and are asking us to take care of their older planes,” he said. “It’s a competitive advantage that we’re willing to do so.” Boeing aircraft traders have placed used airplanes at some of the world’s largest airlines as well as new startup carriers. “Having Boeing’s capabilities and portfolio involving used airplanes has advantaged us in the marketplace,” said John Wojick, vice president of Commercial Airplanes Sales. “Whether it’s taking trade-ins or providing customers interim lift to allow us to respond quicker than we can deliver new planes, our portfolio helps keep customers at Boeing.” In an effort to maximize the company’s trading expertise, Commercial Airplanes and Boeing Capital will consolidate the traders into a single management team starting in January and based at Boeing Capital. “We’re bringing together two groups that have demonstrated a genuine competitive advantage for Boeing,” Cave said. “We’re going to have the capacity to deal with the current surge and perhaps to do even more. The synergies created will allow all of us to do more for less.” n john.kvasnosky@boeing.com “It takes a big Rolodex to be good in this business.” – Frank Duckstein, Boeing Capital PHOTOS: (Left) Frank Duckstein, left, and Michael Murray, both with Boeing Capital Corp., inspect a used Boeing 757 at an Everett, Wash., aircraft maintenance facility. ED TURNER/BOEING (Below) The first 717-200s in Delta Air Lines livery are seen here after their transformation from being part of AirTran’s fleet. DELTA AIR LINES BOEING FRONTIERS / DECEMBER 2013–JANUARY 2014 17


Frontiers December 2013—January 2014 Issue
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