Boeing: Boeing and SAIC Submit Revised Ground Combat Vehicle Proposal to US Army

ST. LOUIS, Jan. 21, 2011 -- The Boeing Company [NYSE: BA] has teamed with Science Applications International Corporation (SAIC) [NYSE: SAI] to submit a revised proposal for the technology development phase of the U.S. Army’s Ground Combat Vehicle (GCV) program. The team originally submitted a proposal in May, but the initial Request for Proposal was rescinded and a second request was issued in November.

The SAIC-led GCV team, known as Team Full Spectrum, remains intact from its original proposal effort. SAIC will be the prime contractor, with Boeing, Krauss-Maffei Wegmann and Rheinmetall Defence as subcontractors. The team’s offering draws on experience gained from the Puma and Manned Ground Vehicle programs and will be built in the United States with a team of experienced American small- and mid-tier supplier businesses.

“Team Full Spectrum has again put together an exceptional proposal to answer the Army’s requirement for a modern infantry fighting vehicle,” said Charles Toups, vice president and general manager of Boeing Network and Tactical Systems. “We have focused on the four key elements the Army has emphasized – capacity for a nine-soldier dismounted squad; a schedule that will allow production in seven years; force protection; and full-spectrum operations from civil relief through full combat operations. Our proposal offers mature technology for unequaled capability at the lowest possible risk.”

The team’s focus is to provide a solution that balances the technology the customer requires with the speed it needs to meet operational goals.

“Our offering is designed to protect soldiers by decreasing their burden of mechanical tasks so they can concentrate on accomplishing their mission,” said Deb Alderson, SAIC group president. “In addition, our team’s high technical readiness levels will help us meet the Army’s timeline.”

The GCV program will replace aging fighting vehicles currently in the Army’s inventory with a single platform capable of carrying an entire squad and protecting that squad from improvised explosive devices and other threats of modern warfare. The Army will award up to three technology demonstration contracts worth approximately $450 million each, with a 24-month time frame for development. The contract awards are expected in the second quarter of this year.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.
Boeing: Boeing and SAIC Submit Revised Ground Combat Vehicle Proposal to US Army

Boeing: 7th Boeing C-17 for Royal Air Force Arrives in United Kingdom

LONDON, Jan. 21, 2011 -- Boeing [NYSE: BA] and its Boeing Defence UK subsidiary today announced the arrival of the Royal Air Force's seventh C-17 Globemaster III airlifter at RAF Brize Norton in Oxfordshire, England. The aircraft was officially delivered on Nov. 16 from Boeing's facility in Long Beach, Calif., and underwent modifications at the company's San Antonio facility before flying to the United Kingdom.

"The RAF C-17 fleet, along with the rest of the Airbridge, delivers an incredible capability to our deployed forces on the front line," said Air Officer Commanding 2 Group, Air Vice-Marshal Philip Osborn, Royal Air Force. "I am also extremely proud of the outstanding contribution that all our aircraft and personnel are making toward continued progress in Afghanistan."

Assigned to 99 Squadron at RAF Brize Norton, the UK fleet of C-17s provides critical airlift capability for the nation's Joint Rapid Reaction Force and has supported humanitarian and disaster-relief missions to Pakistan, Haiti and Chile. 99 Squadron's C-17s are equipped with upgraded software and avionics, as well as additional fuel tanks that extend the aircraft's nautical mile range to over 4,000 miles. In normal operations, the aircraft carries a crew of three -- two pilots and one air-loadmaster.

"May 2011 will mark the 10th anniversary of the delivery of the Royal Air Force's first C-17, which continues to perform superbly -- anytime and anywhere," said Boeing UK C-17 Program Manager Liz Pace. "The RAF uses its C-17s more than any other service today, which is why it has surpassed 60,000 flight hours with just six aircraft."

The UK Ministry of Defence announced it would acquire its seventh C-17 in December 2009, less than one year before delivery.

Boeing supports the RAF's C-17s through the C-17 Globemaster III Sustainment Partnership, a performance-based logistics program, at RAF Brize Norton, the RAF's main operating base for strategic air transport and air-to-air refueling. The arrangement provides the RAF with the benefits of complete "virtual fleet" access and an extensive support network. The virtual fleet concept enables C-17 customers, especially those with smaller numbers of aircraft, to benefit from worldwide parts availability and economies of scale when purchasing materials.

Boeing Defence UK Ltd. is a wholly owned subsidiary of The Boeing Company and a business unit of Boeing Defense, Space & Security. It currently has employees at 20 locations throughout the UK supporting Ministry of Defence and U.S. military programs.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.
Boeing: 7th Boeing C-17 for Royal Air Force Arrives in United Kingdom

Boeing: 7th Boeing C-17 for Royal Air Force Arrives in United Kingdom

LONDON, Jan. 21, 2011 -- Boeing [NYSE: BA] and its Boeing Defence UK subsidiary today announced the arrival of the Royal Air Force's seventh C-17 Globemaster III airlifter at RAF Brize Norton in Oxfordshire, England. The aircraft was officially delivered on Nov. 16 from Boeing's facility in Long Beach, Calif., and underwent modifications at the company's San Antonio facility before flying to the United Kingdom.

"The RAF C-17 fleet, along with the rest of the Airbridge, delivers an incredible capability to our deployed forces on the front line," said Air Officer Commanding 2 Group, Air Vice-Marshal Philip Osborn, Royal Air Force. "I am also extremely proud of the outstanding contribution that all our aircraft and personnel are making toward continued progress in Afghanistan."

Assigned to 99 Squadron at RAF Brize Norton, the UK fleet of C-17s provides critical airlift capability for the nation's Joint Rapid Reaction Force and has supported humanitarian and disaster-relief missions to Pakistan, Haiti and Chile. 99 Squadron's C-17s are equipped with upgraded software and avionics, as well as additional fuel tanks that extend the aircraft's nautical mile range to over 4,000 miles. In normal operations, the aircraft carries a crew of three -- two pilots and one air-loadmaster.

"May 2011 will mark the 10th anniversary of the delivery of the Royal Air Force's first C-17, which continues to perform superbly -- anytime and anywhere," said Boeing UK C-17 Program Manager Liz Pace. "The RAF uses its C-17s more than any other service today, which is why it has surpassed 60,000 flight hours with just six aircraft."

The UK Ministry of Defence announced it would acquire its seventh C-17 in December 2009, less than one year before delivery.

Boeing supports the RAF's C-17s through the C-17 Globemaster III Sustainment Partnership, a performance-based logistics program, at RAF Brize Norton, the RAF's main operating base for strategic air transport and air-to-air refueling. The arrangement provides the RAF with the benefits of complete "virtual fleet" access and an extensive support network. The virtual fleet concept enables C-17 customers, especially those with smaller numbers of aircraft, to benefit from worldwide parts availability and economies of scale when purchasing materials.

Boeing Defence UK Ltd. is a wholly owned subsidiary of The Boeing Company and a business unit of Boeing Defense, Space & Security. It currently has employees at 20 locations throughout the UK supporting Ministry of Defence and U.S. military programs.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.
Boeing: 7th Boeing C-17 for Royal Air Force Arrives in United Kingdom

Boeing: Boeing Confirms P-8A Poseidon Airframe’s Structural Integrity with Full Scale Static Tests

SEATTLE, Jan. 20, 2011 -- Boeing [NYSE: BA] today announced that it completed full scale static testing of the P-8A Poseidon’s airframe on Jan. 7. The series of tests, which began in May 2009, confirmed the airframe's structural integrity.

“The structure performed as we expected throughout testing, allowing us to efficiently expand the P-8A’s flight-test envelope,” said Chuck Dabundo, Boeing vice president and P-8 program manager. “Our static test plan was successful thanks to the combined efforts of Boeing’s design, analysis, and test teams and our U.S. Navy customer.”

S1 -- the program’s full-scale static ground-test vehicle -- underwent 154 different tests in which it sustained loads equal to or greater than those expected to occur during operational flights, with no failure of the primary structure. During 74 of the tests, the airframe was subjected to 150 percent of the highest expected flight loads. More than 4,000 installed strain gages and calibrated parts captured data for analysis.

In September, the Boeing P-8A team will begin refurbishing S1 to prepare it for live-fire testing at Naval Air Warfare Center, China Lake, Calif. Boeing will begin fatigue tests on its second ground-test vehicle, S2, later this year.

The Navy plans to purchase 117 of the P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace its P-3 fleet. Initial operational capability is planned for 2013.

A derivative of the Boeing Next-Generation 737-800, the P-8A Poseidon is built by a Boeing-led industry team that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.

Boeing: Boeing Confirms P-8A Poseidon Airframe’s Structural Integrity with Full Scale Static Tests

Boeing C-17 Program Enters 2nd Phase of Production Rate & Work Force Reductions

LONG BEACH, Calif., Jan. 20, 2011 -- As part of a transition announced last year, Boeing [NYSE: BA] today confirmed it will deliver 13 C-17 Globemaster III airlifters in 2011 as the company moves to a new production rate of 10 C-17s per year. Boeing will reduce the production program's work force by approximately 1,100 jobs through the end of 2012. The company delivered 14 C-17s in 2010.

The move to the new production rate, announced in February 2010, will be completed this summer and result in the elimination of the second shift at the C-17 final assembly facility in Long Beach. The lower production rate is designed to extend the line as Boeing works to capture additional international orders.

"This has been a very difficult decision, no question about it," said Bob Ciesla, C-17 program manager. "But reducing the number of C-17s we deliver every year -- and doing that with a smaller work force -- will allow us to keep the production line open beyond 2012, protect jobs, and give potential customers more time to finalize their airlift requirements."

Boeing will provide assistance for impacted workers seeking potential positions elsewhere within the company.

"We've been communicating frequently with our employees about this process for the past year and will continue to do so," said Ciesla.

Boeing anticipates that the work force reduction will primarily impact Long Beach, where approximately 900 of the 1,100 reductions will take place at the program's final assembly site. The remaining 200 reductions will impact C-17 production program employees in Macon, Ga., Mesa, Ariz., and St. Louis. The company will try to redeploy many of the affected employees to other programs or other Boeing locations where the company has suitable job openings.

The program, which supports roughly 25,000 supplier jobs in 44 states, has an annual economic impact of approximately $5.8 billion. Now in its 18th year of service, the C-17 has supported numerous military transport, humanitarian and disaster-relief missions worldwide. The fleet continues to operate at an accelerated rate due to the recent troop surge in Afghanistan. It achieved 2 million total flight hours in December, less than five years after it passed the 1 million-flight-hour mark in March 2006.

Boeing has delivered 226 C-17s worldwide, including 20 to international customers. The U.S. Air Force -- including active duty, National Guard, and Air Force Reserve units -- has taken delivery of 206. Other customers include the United Kingdom Royal Air Force, the Canadian Forces, the Royal Australian Air Force, the United Arab Emirates Air Force, the Qatar Emiri Air Force, and the 12-member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations. India and Kuwait are expected to be the next C-17 customers.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.

Forward-Looking Information Is Subject to Risk and Uncertainty

Certain statements in this report may be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "plans," "projects," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based upon assumptions about future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak to events only as of the date they are made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws. Specific factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, statements we make regarding our guidance relating to future financial and operating performance, the effect of economic conditions in the United States and globally, and general industry conditions as they may impact us or our customers, as well as the other important factors disclosed previously and from time to time in our other filings with the Securities and Exchange Commission.

Boeing C-17 Program Enters 2nd Phase of Production Rate & Work Force Reductions

Statement on Chinese Approval of 200 Boeing Aircraft - Jan 19, 2011

SEATTLE, Jan. 19, 2011 /PRNewswire/ -- Boeing (NYSE: BA) is pleased to have received final approval today from the Chinese Government confirming a $19 billion aircraft agreement.

China's approval of airline contracts for 200 orders covers aircraft to be delivered over a three-year period, 2011-2013. The approval helps Boeing maintain and expand its market share in the world's fastest growing commercial aircraft market. Comprised of 737s and 777s, the agreement positively impacts more than 100,000 jobs including those at Boeing and with its thousands of suppliers throughout the U.S.

"We value China's support for our products and its confidence in Boeing," said Jim Albaugh, president and CEO, Boeing Commercial Airplanes. "With the outstanding support provided by the United States Government, this deal is a win-win for the Boeing-China partnership, which is approaching its 40th anniversary."

Today, Boeing jets are a mainstay in China's air travel and cargo system, representing more than 50 percent of all commercial jetliners operating in China. Over the next 20 years, Boeing projects that China will need 4,330 new airplanes, worth more than $480 billion, and will be Boeing's largest commercial airplane customer.

Statement on Chinese Approval of 200 Boeing Aircraft - Jan 19, 2011

Boeing, American Airlines Complete Contract for Two 777-300ERs - Jan 19, 2011

SEATTLE, Jan. 19, 2011 /PRNewswire/ -- Boeing (NYSE: BA) and American Airlines today announced the Fort Worth, Texas-based carrier has exercised options for two 777-300ERs (extended range).

"American Airlines is an industry leader whose vision and disciplined approach to growth has made it one of the largest airlines in the world," said Boeing Commercial Airplanes President and CEO Jim Albaugh. "American is the first carrier in the United States to order the 777-300ER. These new airplanes will complement their large fleet of 777-200ERs offering additional flexibility in serving the nonstop routes, while providing increased efficiency and reliability."

The Boeing 777 is the world's most successful twin-engine, long-haul airplane. The 777-300ER extends the 777 family's span of capabilities, bringing twin-engine efficiency and reliability to the long-range market.

"These additional wide-body aircraft will bolster our network strategy, particularly the international growth opportunities we expect from our joint businesses with oneworld® partners in the transatlantic and transpacific markets," said Tom Horton, President, AMR Corp., the parent company of American Airlines and American Eagle. "We value the combination of size, range and performance of the 777-300ER, as well as the extensive customer amenities it offers. The seating capability of the aircraft will give us growth flexibility in slot-constrained airports and provide us with greater ability to serve new long-haul markets."

The Boeing 777-300ER is 19 percent lighter than its closest competitor. It produces 22 percent less carbon dioxide per seat and costs 20 percent less to operate per seat. The airplane can seat up to 365 passengers in a three-class configuration and has a maximum range of 7,930 nautical miles (14,685 km). The 777 family is the world's most successful twin-engine, twin-aisle airplane.

Boeing incorporated several performance enhancements for the 777-300ER, extending its range and payload capabilities. Excellent performance during flight testing, combined with engine efficiency improvements and design changes that reduce drag and airplane weight, contributed to the increased capability.

Boeing, American Airlines Complete Contract for Two 777-300ERs - Jan 19, 2011