When it comes to airplanes, one thinks of airlines like British Airways, Emirates, or Qatar Airways. But these are just service providers. They provide the pilots, staff, and cabin crew. None of these people or organizations make their airplanes. In fact, because of the aggressive marketing from air carriers, people tend to forget who made the airplanes in the first place. But one name flies high above the rest as one of the world’s biggest and most well-known aerospace manufacturers. Boeing’s planes are used everywhere. They are one of the biggest defense contractors of the US government for whom they manufacture and upgrade drones, fighter craft, missiles, helicopters, and much more. Here, let’s know about Boeing’s Organizational Structure.
The Sky Gods- Boeing organizational structure at a glance
Born in 1916, Boeing has grown from manufacturing commercial aircraft to landing huge defense contracts and engineering propulsion engines for space programs. The Boeing Executive Council has 20 directors led by Chief Executive Officer David Calhoun. The company is comprised of four divisions, three of which correspond to major business segments and sources of revenue. These three include Defence, Space & Security, Commercial Airplanes, and Global Services. The fourth division, Boeing Capital, is responsible for financing the company and its clients’ projects. Each division alludes to Boeing’s vision and contributes a particular asset to the company. All four divisions are led by their own President and Chief Executive Officer who serve on the Executive Council.
Doing the heavy lifting on the runway.
Boeing has a distinct department for each of its services. This allows them to pool their resources more effectively, service more clients around the world, and have a greater repertoire of aircraft. A separate department for financial services ensures a steady flow of cash which is vital in the airplane and defense manufacturing business.
For the everyday joe and then some: Boeing Commercial Airplanes
Since its inception in 1916, Boeing has manufactured some of the best commercial airplanes on the planet. The 747, 777, 787, the list can go on. The lion’s share of their success goes to Boeing’s Commercial Airplanes division. The subsidiary also manufactures private and business jets. Their crown jewel was when they made Air Force One for the United States Airforce. Boeing’s Commercial Airplanes division operates factories in Washington and South Carolina and the testing facility at Long Beach, California. Led by Chief Executive Officer Stan Deal, Boeing Commercial Airplanes contributes 28% of the Boeing Company’s revenue and until quite recently was its chief source of income. The division also had its own subsidiaries in Boeing Canada and Preston Aviation Solutions and makes the company $16.2 Billion in revenue. Boeing Commercial Airplanes supplies air carriers like Etihad, Emirates, and British Airways, so most of us have traveled in Boeings Commercial Planes.
For the soldier- Boeing Defence, Space & Security (BDS)
Now we come to the adventurous bit about Boeing. Formed in 2002 as Boeing Integrated Defence Systems (BDS) is the result of merging Boeing Military Airplane Company, Hughes Satellite Systems, Hughes Helicopters, Piasecki Helicopter, the McDonnell Douglas Company, and the former North American Aviation division of Rockwell International. The Defense, Space, and Security division of Boeing is the world’s 2nd largest defense manufacturer by revenue and also contributes the most (45%) to the Boeing company’s total revenue. The Boeing subsidiary is further organized into the following divisions-
- Autonomous Systems
- Global Operations
- Phantom Works
- Space and Missile Systems
- Strike and Surveillance Vertical Lift
BDS manufactures Bomber Aircraft, Rotorcraft, Fighter Planes, Tankers, Missiles, Spaceplanes, Satellites, and Experimental Aircraft for the United States and its Allies. Headquartered in Arlington, Virginia, the defense division of Boeing is led by CEO Leanne Caret and makes the company $21 Billion in revenue.
Taking flight to the world: Boeing Global Services
All countries need airplanes and fighter jets, and Boeing’s Global Services hope to supply just that. They operate plants and manage supply chains, producing and selling Boeing jets and defense equipment to private, public, and government entities around the world. The Boeing subsidiary makes engineering modifications to aircraft, provides digital and analytical solutions, and trains professionals from the aerospace industry. Headquartered in Dallas, Texas, and run by Theodore Colbert, Boeing Global Services operates in more than 300 locations in over 70 countries and makes more than a quarter of the Boeing company’s revenue.
The money- Boeing Capital
This last division of the Boeing company mainly serves to manage the company’s overall finances and support its activities. The company also provides aircraft leases to airlines to facilitate the temporary expansion of their fleet. Previously the financial wing of McDonnell Douglas, it merged with Boeing with the company in 1968. Mac Allen serves as the President, with the company’s revenue standing at $261million.
For over a century, the Boeing company has been one of the pioneers of commercial and defense aircraft technology. The company’s foray into space has introduced it to new horizons, opening a whole new door of possibilities. With the company has been through so much in the past half a century, mergers, acquisitions, expansions, its survival is a testament to the agility and proficiency of its organizational structure. Whatever be the case, Boeing has continued to spread its wings and soar high above the competition.