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Boeing plans job cuts in airplane programs

Boeing plans to cut jobs in its commercial airplanes division, which includes its 787 Dreamliner program in North Charleston (pictured). The company did not disclose where, when or how many jobs will be eliminated. (Photo/Liz Segrist)

In an effort to remain competitive and cut costs, Boeing plans to eliminate an unspecified number of jobs in its commercial airplane programs, division CEO Ray Conner told employees in a webcast on Wednesday.

Boeing did not release any information on how many jobs will be cut, which sites or programs will be impacted or when cuts will occur.

The Boeing Commercial Airplanes division includes the 787 Dreamliner program in North Charleston and Everett, Wash. Boeing spokespeople declined to comment on whether cuts will impact Boeing South Carolina’s Dreamliner program.

Boeing South Carolina employs about 7,500 people across all of its divisions, including the 787 campus, interiors facility, propulsion center, and research and technology operations.

“To win in the market, fund our growth and operate as a healthy business, we are taking thoughtful steps to reduce the cost of designing and building our airplanes,” Boeing spokesman Doug Alder said in an emailed statement.

Part of the new cost-cutting plan involves evaluating employment levels across the entire Commercial Airplanes program, beginning with executives and managers. Boeing plans to use attrition as well as voluntary layoffs. The company said involuntary layoffs may be necessary.   

“The overall employment impact will depend on how effectively we bring down costs as a whole,” Alder said.

Boeing expects Middle East market to grow

Boeing Dreamliners, built in North Charleston and Everett, Wash., are expected to become more popular with Middle Eastern airlines over the next two decades. (Photo/Boeing)

Airlines in the Middle East are expected to need at least 3,100 new airplanes over the next 20 years, according to a new Boeing forecast.

That equates to around $730 billion in profits.

Boeing's Current Market Outlook forecasts more Middle Eastern airlines to either update aging fleets or expand existing ones. The Traffic and Market Outlook predicts that part of the world to take delivery of the most large widebody airplanes and the second-most medium widebody airplanes between now and 2034.

Twin-aisle aircraft — the 787 and 777 — are projected to account for a little less than half of the region’s new airplane deliveries over the 20-year period, compared with 23% globally. Single-aisle airplanes, such as the 737 Max, are also expected to be popular.

Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes, elaborates:

“About 80% of the world's population lives within an eight-hour flight of the Arabian Gulf. This geographic position, coupled with diverse business strategies and investment in infrastructure, is allowing carriers in the Middle East to aggregate traffic at their hubs and offer one-stop service between many city pairs that would not otherwise enjoy such direct itineraries.”

This growth could also expand Boeing’s aftermarket services business, which provides support to airlines through the life cycle of their fleets. Three new 787 operators in the region are contracting these services from Boeing currently.

Boeing studies lightning, body motion, robots

Boeing S.C. employee Sriya Ngo shows how a lighted suit will help the ergonomics team study motion and recommend workflow changes to prevent injuries to assembly and production workers. (Photo/Liz Segrist)

During the official opening of Boeing's new Research & Technology-South Carolina Center last week in Ladson, executives talked about how the center will attract qualified engineers and scientists to the region.

They said the research coming out of the center could be applied to its commercial, defense or space programs. New technologies the teams develop could be applied to existing aircraft programs or be used to spark new products in the future.

“The 787 itself is a product of innovation from many ideas gathered from R&T centers around the world," said Beverly Wyse, vice president and general manager of Boeing South Carolina.

That all sounds good in theory — but we wanted to know what the employees actually work on all day inside the 104,000-square-foot facility in Palmetto Commerce Park.

One research team wants to prevent injuries to workers building jets. Many assemblers have to hold their hands above their heads to drill holes or paint plane exteriors, which can cause neck, shoulder or back pain.

By using a motion capture tracking system like those often used in video games or movies, researchers are able to study human motion and evaluate ergonomics.

Workers don a black jumpsuit covered in little lights, and researchers study their movements on a screen. Using the data, they then recommend changes to workflow to prevent future injury.

The center's electromagnetic team uses a high-voltage, high-current system that simulates a lightning strike to test equipment and plane parts. (Photo/Liz Segrist)

Another research team at the center tests airplanes’ electrical systems, such as flight deck operations and in-flight entertainment systems. They ensure existing systems work before Dreamliners roll out of the factory, and they create new technologies to improve future electrical systems on the 787s.

One group is studying how to replace some assembly drilling work with robots. This process will likely be integrated into Dreamliner production lines in 2017.

And other researchers work with a high-voltage, high-current system that simulates a lightning strike to determine how the voltage would impact a jet midair. They then develop new technologies to protect aircraft from strikes.

“We’re all here to focus on business opportunities like ‘How do we automate something like paint?’ so we can get the dangerous work and the dirty work out of the system,” Lane Ballard, leader of the Boeing Research and Technology-South Carolina center, said of the robotics and automation research.

Boeing names new CEO

Dennis Muilenburg will become Boeing's CEO on July 1. (Photo/Boeing)

Boeing's newly elected CEO began his career with the aerospace company as an intern in Seattle in 1985.

Dennis Muilenburg, 51, will succeed Jim McNerney to become the company’s 10th CEO. McNerney will step down on July 1 after 10 years as head of the aerospace company.

Muilenburg earned a bachelor’s degree in aerospace engineering from Iowa State University and a master’s in aeronautics and astronautics from the University of Washington.

From 2009 to 2013, he served as president and CEO of Boeing Defense Space & Security, overseeing 53,000 employees at the business unit’s St. Louis headquarters.

Since 2013, he served as both Boeing president and COO and as company vice chairman, alongside Boeing Commercial Airplanes President and CEO Ray Conner.

In his most recent role, Muilenburg worked with McNerney to oversee day-to-day business operations with a focus on the company’s growth and productivity initiatives, customer relationships and leadership development programs, the company said.

“The opportunity to lead the people of Boeing in service to our commercial and government customers is a tremendous honor and responsibility,” Muilenburg said in a statement. “Our company is financially strong and well-positioned in our markets.”

McNerney will remain as chairman of the board. He will continue working for Boeing until retiring at the end of February to ensure a smooth transition, the company said.

McNerney commented on Muilenburg’s leadership: “As CEO, Dennis will bring a rich combination of management skills, customer focus, business and engineering acumen. ... With a deep appreciation of our past accomplishments, and the energy and skill to drive those to come, he is well-suited to lead our very talented Boeing team into its second century.”