Paris Air Show
Aerospace |
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Boeing Business
Jets Adds $60 Million In Orders
Paris (June 14, 1997) -- Boeing Business Jets, not quite one year old, today added two new orders to their orderbook for the next-generation 737-700 version it is offering to corporate customers. The press conference at today's Paris Air Show was full of polite journalists, expecting to hear another discussion about capabilities. Instead, Borge Boeskov, president of the Business Jet unit of Boeing, took the opportunity to announce two new orders, bringing the orderbook to a total of 20 aircraft, a $600 million backlog for the relatively brand-new offering. As is typical in almost all of these types of private business transactions, the customers for today's orders -- with the exception of an order earlier this week to golf superstar Greg Norman, and also launch-customer General Electric -- have asked to remain anonymous.
The aircraft's capability may be just part of the reason. Another large part of the company's success in this arena has to be the enthusiasm of Borge Boeskov. "Isn't it great?" he enthused in a private conversation with AeroWorldNet managing editor, Ron Wilbur, after the press conference. "Things are really going very well." Meaning, of course, that the momentum mentioned earlier puts the young venture in rare air in terms of performance. Boeskov's energy and obvious enthusiasm for his product is clearly infectious. And small wonder. The Boeing Business Jet is a high-performance derivative of the Boeing next-generation 737-700. It combines the size of the 737-700 fuselage (110 feet, 4 inches; 33.6 meters) with strengthened wings and landing gear from the larger and heavier 737-800. This tailored combination provides owners with a business jet platform with a range of 7,140 statues miles (6,200 nautical miles, 11,480 kilometers) and payload flexibility beyond that of any competitor. The airplane cruises at Mach .82 (550 mph) with its range making such business routes as New York to Tokyo or London to Johannesburg well within its capabilities. The aircraft is powered by the same CFM56-7 engines used on the new 737 aircraft, produced by CFM International, a 50/50 joint venture of GE and France's Snecma. An 807 square-foot passenger cabin gives the Boeing Business Jet nearly three times as much space as the largest existing executive jets. The interior can accomodate a variety of configurations, with space for conference rooms, executive offices and individual work areas that exactly match a customer's personal work and travel preferences. The spacious interior provides room for new features typically not found in other corporate jets. These features can include a private crew rest area or emergency medical facility, an advanced satellite communications center, an exercise suite with in-flight shower, a remote press center, or a disaster relief center. And, of course, head room. The Boeing Business Jet concept is a joint venture announced July 2, 1996, by The Boeing Company and GE, to respond to market demand for a larger, more capable business airplane that can fly more than 6,000 nautical miles. The marketing arrangement was established in the form of a contract joint venture. Boeing manages day-to-day operations, manufactures the airplane, and is responsible for sales and marketing activities with support from General Electric. The airplane's engines will be manufactured by GE (or rather, GE's JV with SNECMA) and both companies are involved in customer support and decisions affecting the product's pricing and market applications. The two companies share in both cost and revenue. Boeing Commercial Airplane Group will provide airplanes to Boeing Business Jets, which will then deliver them to a customer-selected completion center for interior installation and paint. The business jet is comparably priced to existing long-range corporate jets. The price for an unfurnished, or "green," airplane is $30.5 million, in 1995 dollars. That price will rise to $32 million on July 1, 1997, when the Flight Dynamics Heads-Up Guidance System (HGS) and a second HF radio are included as standard equipment. Customers can expect that a completely furnished and equipped business jet will cost approximately $40 million for delivery in late 1999. Looking at simple facts, the first Boeing Business Jet is scheduled to
roll out of the factory in the US in June 1998. GE will take delivery of
the first Boeing Business jet in the Fall of 1998. But looking at the way
Borge Boeskov goes after the market, we're betting Boeskov will have amassed
a huge orderbook for Boeing Business Jets by the time the first delivery
takes place. |
"We're
extremely pleased to announce all of these new orders," said Boeskov,
referring to the earlier orders as well as today's. "It shows the kind
of momentum that is building for this airplane program." And momentum
might just be the perfect word to describe how the Boeing offering is selling.
From a typical slow start, with JV partner GE serving as launch customer,
the 737 Boeing Business Jet has done well at a little over $30 million a
copy.