Boeing Plans to Expand With New Technology

T O K Y O, Nov. 28, 2000 -- The Boeing Co. plans radical changes in the way itdesigns and builds planes to reduce costs by as much as 50 percent,chairman Philip M. Condit said today.

The company wants to use cutting-edge technology to expand itsrange of products and services, Condit said, predicting a future ofspace-based air traffic control and planes that repair themselves.

It’s Whats Inside That Counts

Boeing is “looking for the opportunity to make majorbreakthroughs,” Condit said. “Most of those breakthroughs willcome not in what the aircraft looks like, but in the way it isdesigned and built.”

Condit spoke at a press conference following a technologyseminar the company held for Japanese executives, officials andtechnology specialists.

Japan is an important market for the aircraft manufacturer. OnMonday, Boeing announced that Japan Airlines ordered eight of its777-200ERs and three 767-300ERs worth an estimated $1.6billion.

The extended-range planes will replace JAL’s fleet of 10 MD-11wide-body jets. In the deal, Boeing will take the MD-11s in trade,convert the planes to freighters and deliver them to United ParcelService.

JAL is to receive its new jets between 2002 and 2004.

Future Is Bright

Condit said the company expects Boeing’s core businesses — commercial planes, military aircraft and space and communications — to grow 4 percent to 5 percent percent annually in the next few years.

Providing maintenance for U.S. military planes is one area inwhich the company wants to become more active. It also wants toreduce satellite launch costs by up to 90 percent.

Condit spoke optimistically about three business units createdearlier this year to focus on Internet access in airplanes,development of a private air traffic control service and formationof a finance company.

“We will be a much bigger company. We will be a much morerapidly growing company,” he said.