Condit's Legacy | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 08.31.15

Airborne 09.01.15

Airborne 09.02.15

Airborne 09.03.15

Airborne 08.28.15

Airborne Hi-Def On YouTube

Airborne 08.31.15

Airborne 09.01.15

Airborne 09.02.15

Airborne 09.03.15

Airborne 08.28.15

EAA/ANN AirVenture Innovation Preview

AIP-#1 Vimeo

AIP-#2 Vimeo

AIP-Part 1 YouTube

AIP-Part 2 YouTube

Tue, Dec 02, 2003

Condit's Legacy

By Shifting Boeing's Focus To Defense, Did Its Outgoing CEO Fumble?

Phil Condit had a vision back in 1996.

He believed the future of Boeing, which he'd just been tapped to lead as president and CEO, was not in commercial aviation, but in defense contracting. Condit surprised the aerospace world Monday by resigning, leaving his post to former Vice Chairman Harry Stonecipher. But what about the vision thing?

Condit's reasoning seemed a simple example of capitalism at its best. The average profit margin in building commercial aircraft, Boeing's most visible endeavor, was five percent. But the margin in defense contracting is about eight percent. When you're dealing in astronomical numbers as Boeing does, a difference of three percent amounts to a load of cash.

So Boeing got hawkish under Condit's command, changing the ratio of its overall business until the point where, today, commercial aircraft manufacturing accounts for only 44% of Boeing's revenue. Its main rival in that field is Airbus, which, next year, will overtake Boeing as the world leader in commercial aviation manufacturing.

The quest for higher profits brought ethical scandals to Boeing. In competing with the likes of Raytheon and Lockheed-Martin, Boeing executives found themselves under investigation for breaches like industrial espionage and unethical practices. Those allegations, involving the Evolved Expendable Launch Vehicle in 1997, the missile defense shield in 2002 and now the "supertanker" replacement for the USAF's KC-135s, hang like a sour cloud over the company.

So perhaps that's why Stonecipher appears headed back to Boeing's roots -- commercial aviation. In an interview with Fox News, along with outgoing CEO Condit, Stonecipher said he's personally backing the 7E7 project as it goes before the Boeing board of directors this month for the green light to manufacture.

"Oh, I think it is a great idea," he said.

"I think we need a new airplane program and I think the guys (developing the 7E7) have done a good job, a very thoughtful job and they’re going to be bringing it to the board. And I’m going to be right there beside them helping them present the thing to the board."

FMI: www.boeing.com

Advertisement

More News

Aerospace Update: Swiss Team Wins Gordon Bennett Balloon Race

The Swiss Team of Kurt Frieden And Pascal Witprächtiger Won The 59th Coupe Aéronautique Gordon Bennett Competition The Coupe Aéronautique Gordon Bennett, the FAI>[...]

ANN's Daily Aero-Linx (09.03.15)

NASA JPL Education Site The Education home page for NASA JPL is the perfect place for parents and teachers to find activities for a budding rocket scientist, engineer, technician, >[...]

ANN's Daily Aero-Term (09.03.15): Magnetic Variation

Difference between true north and magnetic north, varying with position; magnetic variation drifts with time.>[...]

Aero-News: Quote Of The Day (09.03.15)

“We want this to be a gateway to aviation, and for the existing industry to embrace these craft.” Source: AUVSI president and CEO Brian Wynne.>[...]

Woman Who Suffered From Septic Shock Skydives For First Time

Jump Follows Amputation Of Both Hands And Feet, Done To Raise Awareness Of The Condition A woman in Oklahoma who lost both hands and feet to septic shock last year has done somethi>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC