September 8, 1998


Boeing Business Jet Keeps Ringing Up Sales

By Chris Genna,
Contributing Editor

FARNBOROUGH, England - Boeing Business Jets announced Tuesday it had racked up another six sales of the long-range business jet version of its next-generation 737.

As usual, BBJ President Borge Boeskov would provide no details about the latest purchasers of the bizjet, which is a basically a 737-700 fuselage joined to the bigger wing and beefier landing gear of the 737-800.

At a press briefing at the Farnborough International Air Show, Boeskov's major point was "we have a real airplane" ­ a late addition to a lavish BBJ press kit was a photo of the first BBJ taking off on its first flight last week.

The Boeing-GE joint venture charges $33.75 million for each airplane "green," without exterior paint or interior. The purchaser then can have a custom interior -- staterooms, conference rooms, even workout gyms -- installed at one of five Boeing-approved after-market modification centers, for prices that can add as much as $11 million more.

Does Boeing make a profit at that price? "Do you want me to keep my job? Profitability is a hot topic at Boeing Commercial Airplane Group now," Boeskov quipped, "and yes, weıre going to be profitable."

The price has risen since Boeing and GE launched the plane in 1996, Boeskov said, because the engine thrust will be increased 900 pounds and the production models will have 8.5-foot-tall winglets Boeskov said will boost performance 5 to 8 percent. "On a short-range planes, thatıs not a big deal," Boeskov said. "But on a 14-hour flight, thatıs a huge deal."

The BBJ has a 6,200-nautical mile range.

When the venture closed 1997 with 29 orders on the books, there was talk that number might double in another year. If Boeskov is nervous that heıs added only six in the first three-fourths of 1998, he didnıt show it Tuesday. He hinted that big numbers could be announced at the National Business Aviation Association (NBAA) convention in Las Vegas starting Oct. 19.

Anyway, Boeskov said, the 35 jet total averages out to two planes per month since the venture actively started selling the BBJ, "and thereıs absolutely no reason why we canıt continue that."

At the Las Vegas show, Boeskov will have BBJ No. 1 to show ­ flight testing should be completed within weeks. And though that plane will be empty, he will show off a full-scale mockup of a typical interior.

Plane No. 2 has already rolled out of Boeingıs final assembly plant in Renton. Assembly of BBJs at Boeing Douglas division plant in Long Beach, Calif., will start late this year and by mid-1999, all BBJ assembly will be there.



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