Boeing's Defense Deals and Ethical Issues



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Code : GOV0038

Year :
2004

Industry : Aircrafts and Ship Building

Region : USA

Teaching Note: Not Available

Structured Assignment : Not Available

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The Early Years William E.Boeing founded the Boeing Company in 1916. Though the company manufactured only two planes called B&W seaplanes, their first sale to New Zealand flying school marked the beginning of a company that later went on to influence world’s commercial aviation industry. Boeing planes were first used during World War I (WWI) and from then on, it regularly suppliedmilitary aircrafts. After the war, military orders for planes completely dried up. So, Boeing resorted to producing woodwork products...

The Troubled Times For years, Boeing’s commercial division contributed to most of its revenues, but to deal with the cyclic nature of airline business and rise of Airbus as a potent threat, Boeing started to focus more on space and defense business. So, to expand its defense and space businesses, Boeing acquired defense and space companies in late 1990s. “We knew that commercial airplanes was going to be a capital goods, cyclic industry.We need breadth,” said Condit. In 1996, Boeing acquired Rockwell’s aerospace and defense units including space systems, aircraft division, Rocketdyne, Autonetics, missile systems, and aircraft modification for $3.5 billion. The acquired unitswere named as Boeing North American, Inc., which operated as a Boeing subsidiary...

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Defense Deals In 1999, the US government as a part of its Evolved Expendable Launch Vehicle (EELV) program called upon companies to develop next-generation rockets that would carry satellites into space through 2020 – worth $1.88 billion. Boeing was locked in a fierce competition with Lockheed Martin to build rockets to launch spy and communications satellites under the EELV program. Boeing succeeded in the bid and was able to corner a major share of the deal. Boeing’s Delta 4 rocket received 19missions and LockheedMartin’s Atlas 5 was offered nine missions...




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