Boeing Bags $1B In Services Contracts

Boeing announced nearly $1 billion in work for its Boeing Global Services (BGS) unit at the Singapore Airshow, highlighting the breadth of offerings the company has at its disposal. The deals include nine agreements with customers in Asia-Pacific, ranging from landing gear exchanges to charting agreements with Boeing subsidiary Jeppesen.

Among the highlights:

Singapore Airlines signed a contract to use Boeing’s Electronic Logbook on its 777s and 787s.
Singapore’s Defense Science and Technology Agency signed a deal “to engage in collaborative research and experimentation activities” using Boeing’s AnalytX digital tools.
China Southern Airlines and Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO) signed an agreement to develop service capabilities for the Boeing Global Fleet Care portfolio, as well as enhanced component and composite repair capabilities.
Landing gear exchange deals were announced with All Nippon Airways (36 units, 787), Malaysia Airlines (48, 737NG), and Lufthansa Group (25, 777-300ER, 777F), which also added overhauls.
DHL ordered one 767-300ER converted freighter.
Biman Bangladesh Airlines has expanded its use of component services to cover new 787s that will enter its fleet in August this year and broadened coverage on its 737 and 777 fleets.
Honeywell Aerospace signed a contract extending Aviall’s product support agreement as an exclusive aftermarket distributor for Honeywell interior and exterior lighting equipment through 2022.
Parker Aerospace’s Aircraft Wheel & Brake (AWB) Division signed a five-year master distributor agreement with Aviall for its Cleveland Wheels & Brakes product line. Aviall will forecast, warehouse and market through its network, including Parker AWB’s former network of direct distributors.
BGS launched July 1, combining Boeing’s commercial, defense, and space support services in one organization. The business unit generates about $14.5 billion in annual revenue, and Boeing is pushing to raise that figure to $50 billion in about a decade. There is plenty of opportunity, according to Boeing’s calculations.

The manufacturer sees a $1.5 trillion market for commercial services, ranging from traditional maintenance to data-driven products such as fuel-savings optimization, and a $1.1 trillion opportunity for government services, largely supporting military fleets. Southeast Asia will generate $82 billion in commercial work and $22 billion in government work, the company projects.

Aviation News

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