Gulf market ‘critical for Boeing'

• Text size
•  
•  

The Boeing CompanyThe Boeing Company

"Our pursuit of international business and industrial partnerships has been greatly aided by the strong enterprise international team we created to support our mainline businesses and the Middle East is a critical market for us — in terms of partnerships and long-term relationships."

BoeingBoeing

According to an IATA report released in July this year, the Middle East was the only region in the world with a consistent increase in passenger traffic for the first half of 2009. While global air traffic numbers declined, the Middle East defied global trends and predictions, while simultaneously dealing with the impact of a global recession.

"Airlines in the region are continuing their expansion plans by buying and inducting new aircraft and launching new routes. More than 100 new airplanes, including 45 twin-aisle aircraft, will be delivered to operators in the region during 2009," McNerney said.

This accounts for approximately 20 per cent of worldwide 2009 twin-aisle deliveries.

‘Unique combination'

"The fact remains that the aviation sector in the Middle East is driven by a unique combination of economic expansion, well-coordinated growth plans, modern air transport infrastructure and a favorable geographic location. And BoeingBoeing is keen to participate in this region's ambitious plans by providing the right products and services to our customers at the right time."

BoeingBoeing on Monday signed a wide-ranging Strategic Framework Agreement with Mubadala at the Dubai Air Show to develop composite manufacturing, engineering, research and development, commercial maintenance, repair and overhaul, military maintenance, pilot training and people development capabilities.

Joint venture

"The UAE is going to become part of the global aviation supply chain through this agreement," McNerney said.

"We will now begin negotiations on the details of a possible joint venture that will help Abu Dhabi develop capacities to become a tier-one aircraft components supplier."

He outlined seven key tasks for the company to weather the current economic storm. BoeingBoeing recently reported a loss in its latest quarterly report, compounded by the chronic delays in B787 Dreamliner.

"First and foremost is the vital necessity of getting the 787 out the door and putting its game-changing innovation into the hands of our customers. We have made substantial progress in recent months, achieving both technical and schedule milestones moving us to the eve of a historic flight test programme that will begin before the end of the year," he said.

McNerney, 60, oversees the strategic direction of the Chicago-based, $60.9 billion aerospace company. Previously, McNerney held the position as chairman and CEO of 3M.

Among others, expanding defence exports, developing the $13 billion service business, developing leadership and strengthening financial discipline are some of the key objectives that BoeingBoeing wants to achieve, he said.

"We want to show a clear path to our customers, we are getting our acts together," he said.

More than 17,000 BoeingBoeing aircraft are currently in service and 400 of them are in the Middle East. BoeingBoeing's order backlog in the Middle East stands at 270.

"Between 7 to 8 per cent of our businesses comes from the Middle East," he said.

By Saifur Rahman

© Gulf News 2009. All rights reserved.