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2000 Speeches
Phil Condit portrait

Phil Condit

Chairman and CEO

The Boeing Company

"The Future of Aerospace and Beyond"

International Media Tour

Seattle, Washington

July 06, 2000

Good morning. I hope you enjoyed the video. Every single time I see it, it amazes me about our great company and its capabilities. A company that is, and will be, a truly global company, operating in a world that is rapidly changing. In fact, this conference is a change for us. It's the first time that we have had a real international media tour. So let me begin by thanking you for coming so far - from Asia, from Europe, from Australia, and from the Middle East - to join us for a few days.

I think you will find that our team has put together an amazing trip -- and a chance for you to learn a lot more about our company. Over the next several days, you will meet a lot of Boeing people. You will see our products and hear about our services. You will witness our skills, and I hope you will learn about our dreams.

You will hear about new aircraft research. You will hear about airplane safety. You will hear about the 747X, our fighter aircraft, and about rocket propulsion. You will see Sea Launch and the C-17. You will hear about Commercial Airplanes' Rapid Response Center and our Delta family of vehicles, and, in fact, you will hear from someone who has been in space - a former astronaut. You also will see how we are providing total solutions for customers, how we are improving the efficiency of our operations, and how we are leveraging technologies and processes to create a much stronger company.

You will travel aboard one of our newest products, a Boeing 717, as you go from Seattle to California to St. Louis to the Kennedy Space Center in Florida. And finally, before you return home, I will have a chance to talk with you one more time. So at this time, I want you to "put your tray tables and seat backs in their full upright position, fasten your seat belts, and prepare for takeoff." We are going to look at where Boeing has been, how we are transforming to aerospace solutions, and where we are heading in the future.

Let me give you just a brief background on Boeing. We are 84 years old this month. We are the largest aerospace company in the world. We are the largest maker of commercial jetliners and military aircraft. This is a company that has gone from wood and fabric to metal and jet engines, and we have won the prestigious Collier Trophy often. In 1999, our total company revenues were $58 billion (U.S.).

As a company, we are committed to three goals: running healthy core businesses, leveraging our core strengths into new products and services, and opening new frontiers. I am going to spend a little time on each of these.

First, running healthy core businesses.

This is absolutely crucial to us.

We are a company that produces great commercial airplanes, from the DC-3 to the 707 and DC-8, to the 747, 777, and now the Boeing Business Jet.

We are a company that produces great fighter aircraft, from the P-51 Mustang to the F-4 Phantom to the F-86 Sabre; from the F-15 Eagle to the AV-8B Harrier. We are a company that produces great military bombers, from the B-17 and the B-24 to the B-52 and the B-1; and tankers from the KC-97 to the KC-135 and KC-10; and transports from the C-47 "Gooney Bird" to the C-17 Globemaster III. We are a company that has developed helicopters, from the "Flying Banana" to the CH-47 Chinook to the Apache, Comanche, and V-22 Osprey.

We are also a company that has built every manned spacecraft in U.S. history: Mercury, Gemini, Apollo, Skylab, Shuttle, and now the International Space Station. We are a company that revolutionized precision navigation by building the first 40 Global Positioning System satellites, and we are now working to build the next-generation GPS. We are a company that has built defensive missile systems from Minuteman to the National Missile Defense.

We have three core businesses: Commercial Airplanes, Military Aircraft and Missiles, and Space and Communications. Every one of those businesses has solid, steady fundamental growth. We have continually expanded our product lines and will continue to take advantage of technological advances and adapt to market needs. We will seek ways to reduce costs and improve production methods. On your trip, you will see various examples of lean manufacturing and technology being applied to production. Just an example: Next Monday in Huntington Beach, you will see our new friction stir welding machine that is revolutionary and operating in a lean manufacturing environment. We also continue to pay attention to our future by investing in research and development in our business units. You will hear more about that in each business unit and at our Phantom Works when you are at St. Louis.

It will always be vital that we run healthy core businesses because they provide the power to sustain the company, and that is what allows us to examine new opportunities.

And that brings me to the second goal, leverage core strengths into new products and services.

We have great opportunity.

Our customers are adapting to a rapidly changing world and global market economy. For example, commercial airline customers are concentrating more on their core businesses and, as a result, are less interested in the maintenance and modification of their airplanes.

Currently, our support services in that marketplace represent a little less than 5 percent of Commercial Airplanes revenues. That's an opportunity that can grow significantly because the addressable services offer a market about the same size as new aircraft. The same thing applies to the defense side. The U.S. government once maintained and modified their aircraft in major depots. Boeing is now doing a lot of that work and that service work has grown to 25 percent of our Military Aircraft and Missiles revenue today. We have similar opportunities in Space and Communications. And that strategy has played a critical role in our decision to acquire Hughes Space and Communications business.

Leveraging the core strengths in each of the business units can provide significant growth in our businesses, and it can create significant value for Boeing. The intellectual capital and the global brand of Boeing create still further opportunities.

And that leads me to our final goal: open new frontiers.

First, we have great intellectual capital...it is our people, more than 185,000 Boeing employees. They work in 62 countries and they hold almost 100,000 college degrees, with 64,000 of those being in science-related disciplines. We are mechanical, electrical, aeronautics, and nuclear engineers. We are mathematicians, geophysicists, biochemists, accountants, administrators, lawyers, and communicators, among many others.

Second, we have a great global brand. It is recognized almost everywhere in the world. Today we have customers in 145 countries. As you just saw in the video, one of the things we are looking at is the scale of what we touch in a 24-hour period, and, in fact, I have a few more examples to share. Today there will be some 3 million people boarding 42,300 flights on Boeing jetliners, 6,000 Boeing military aircraft around the world, and 335 satellites that we launched passing overhead.

Third, we have phenomenal large-scale integration expertise. It's true whether it is the 777, the Joint Strike Fighter, the Space Shuttle, or the International Space Station.

We have wonderful opportunities to leverage this intellectual capital, our global brand, and our large-scale integration expertise into dramatic results. The list of opportunities is long, so I'm going to talk about only one. But I will talk about Connexion by Boeing, which you will see later today. Connexion by Boeing is a global, mobile service that uses a phased-array antenna and global satellite technology. It will allow people, like everyone in this room, people "on the go," people traveling at 40,000 feet on a commercial airliner or business jet, or on a cruise ship, or on a train, the opportunity to access broadband communication services anytime, anywhere. It will give customers the opportunity to be connected to the Internet, to a company intranet, to an e-commerce site, or to a cable news network.

We think it will change the travel experience forever. For example, on your flight here, many of you may have worked on your laptop until the batteries ran down, or read a book, or maybe watched a movie. But soon, when you will be able to watch the Olympics "live," or e-mail your family, or shop online, or file a story, the airplane will feel like your home or office.

As you look at this brief overview of Boeing, I hope what you will see is capability and opportunity. Boeing is doing dramatic things as a company, as a team of people, as a world leader to deliver more value to our customers, to our shareholders, to our suppliers, and to our communities where we work. Today Boeing is transforming itself from products to solutions. We have a very well-balanced company, three healthy core businesses, and a great team. You will have a chance to meet virtually every leader in this company. They can leverage our core capabilities into new products and services and open new frontiers, and we are going to be a leader in the new global market economy.

In the next few days, I hope you will get a chance to see the breadth and depth of our business. And that you will come away with a better understanding of our company, of what we can do, and what we will do. I hope you have a great trip!