Alignment

Over the past several months I’ve been asked over and over again about the future development of the 777 and 737. It’s an understandable question in light of our new competition and the changing marketplace.

Today we got some answers, a realignment of our organization to better address these issues. As Commercial Airplanes president and CEO Jim Albaugh put it to employees today, we’re making these changes to enhance functional excellence and execution, and better position us for future growth.

The leadership announcement puts the focus on Boeing’s execution and performance and our long-term future. A big part of what you’ll take away from this is that we’re determined to develop a clear “vision and roadmap” for our single-aisle and twin-aisle market strategies.

In terms of defining our future product strategy, we have a new team in place:

  • Nicole Piasecki will lead a new BCA Business Development function responsible for the overall integration of strategic planning and analysis.
  • Mike Bair will lead a new group, Advanced 737 Product Development, responsible for planning the future of Boeing’s single-aisle airplane.
  • Lars Andersen, former 777 vice president and program manager, is returning as a senior consultant to lead Advanced 777 Product Development.

I’ve had the pleasure of working with, or for, Nicole, Mike and Lars over the years. I can tell you that this is a very strong and dynamic team that will make their mark on Boeing’s products going forward.

I worked closely with Lars Andersen on the 777 program, and had the unique experience of traveling with him on the world’s longest flight. One of the funny memories of working with Lars was the time I had dim sum with him in Hong Kong at a restaurant where we spoke no Chinese and no one else spoke any English! Lars has a strong relationship with our customers and deep understanding of their requirements - making him perfect for this job.

I’ve worked for Mike Bair twice. Once when I led product marketing and then in my role today. He’s worked in virtually every aspect of our business. And for several years he’s played a significant role in developing our product and services strategy.

I’ve had the longest relationship with Nicole Piasecki, going back to the mid-1990s. In fact, in my office I have a picture of our 1997 North America Sales team which we were both a part. She brings a new and fresh perspective to the development of our strategy.

So, with the appointment of Nicole, Mike and Lars, and the other appointments announced today, we’ve got the best possible team in place.

They’ll be working to define our product strategy and to position Boeing for the extremely competitive global economy of today as well as the increasingly dynamic geopolitical realities of tomorrow.

Comments (9)

Daniel Tsang (Hong Kong):

Congratulations to Boeing~!

Randy, I think your experience in Hong Kong was interesting and very true.

As one of the Hongkongers, I think we will just speak Chinese in the restaurant where we eat dim sum unless there're friends coming abroad.

The dim sum was indeed tasty, wasn't it? We, local Hongkongers also love it very much~!

Oleg (Suffield, CT):

Excellent site. I enjoy reading your blog entries.

I am especially interested in the Advanced 737 topic. I am glad to hear that Boeing is publicly disclosing its intention for a new generation of single-aisle aircraft, including a potential re-engined 737NG.

I'm a graduate student at Embry-Riddle Aeronautical University, who is considering writing my graduate capstone project on this topic. I will continue to visit this blog for updates on this program, hopefully covering some of the details as they emerge publicly.

William Burnett (Huntington Beach, Ca):

As per the state-of -the-union..... helping the American Industries....

How about leveling the playing field for the Tanker Bid....France/EAS has corporate taxes of approx. 30%

Boeing has approx. 40% how about leveling this to make the bids fair...

P.Sumantri (France):

That's not fair.
You have just cut the ground from under my feet. I can't speculate about possible 737 or 777 development in my blog anymore.

My blog: verovenia.wordpress.com

TC (Mt. Vernon, WA):

As for the 777 family, I see the 777-200 as analogous to the 737-700 and 767-200 of those families. I see the 777-300 as analogous to the 737-900 and 767-400.

Maybe there is an ideally proportioned airplane in a family, which gives the best ratio of volume to structural weight. For example, the high selling 737-800 and 767-300.

I believe there is an ideally proportioned 777, which lies in length between the 200 and the 300. It would have the best ratio of volume to structural weight, which would hopefully give it the best economics in its family.

Don Harrington (Bellevue, WA):

P. Sumantri - Why not? Just because Boeing is going ahead with initial planning is no reason for you to stop speculating. :-) It might be fun to see how close you can get to the final product.

Thanks for the updates, Randy. They are the first thing I look for every morning.

Norman (Long Beach, California, United States):

Their has been a lot of speculation about the future developments of the 737 and the 777 in the airline blogsites. Their has been some creative ideas on the 777 including stretching it beyond the length of the 300 model, increasing the wing span beyond the 300ER and using lighter materials for a proposed next generation model. On the 737 people in the blogsites are talking about a 737RS that comes in a six-abreast single aisle or six-abreast twin aisle configuration.

Gregory Schmitz (Anchorage, Alaska USA):

You have to love it when they use all those fancy buzz words, product drive, clear focus ad nausea.

So what is being said is Boeing was so screwed up before we had to revamp the whole group?

Maybe some people should simply be fired. Reminds you a bit of General Motors where the good old boy network put them under (Ford was smart and hired Mulally away and avoided all that, makes you wonder a bit...)

Good news is when old hands start coming back, they think there is someone capable in charge again. Lets hope so.

Remember when all the old hands bailed after the hollow shell 787 rollout, now we know why.

James (Honolulu, Hawaii):

Having flown the 737 many times (long live Aloha Airlines), I have nothing but fond memories of that airplane. However, as I have commented here earlier, I would challenge Boeing to break the wing-tube paradigm for the next generation of airplanes.

Imagine an all-composite "2737" that resembles the Sonic Cruiser. Airbus would have a cow! Every airline in the world would drool over such an airplane. All the current advantages of the 737NG multiplied by next-century good looks and a little bit extra speed. It could change the game as significantly as the 787.

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