Boeing Commercial Aircraft Company Background

William Boeing and Conrad Westervelt incorporated the Pacific Aero Products Company in 1916 to build navy seaplanes. The following year saw the name change to the Boeing Airplane Company. Since that time, Boeing has been building military and commercial aircraft in Seattle, Washington. During the last 80 years, Boeing has expanded into other areas including aerospace, defense, computer systems, hydrofoils, and at one point, even furniture. The company has grown to be the world leader in commercial aircraft and one of the largest aerospace firms in the United States. The Boeing Commercial Aircraft Company is the largest division of the Boeing Company accounting for 76% of sales and 77% of operating income in 1994.

Boeing initiated the commercial jet airliner age when Pan American World Airways took delivery of the first 707 on August 15, 1958 and the success has continued with each new model; 727,737,747,757,767. Boeing is hoping that the success will continue with the latest addition to the family, the 777. Boeing has seen sales drop 25% in two years from a high of $30 billion in 1992 to $22 billion in 1994, which has led to a shrinkage of the workforce by 40,000 from 1991 to 1994. This workforce reduction is due in part to the increased efficiency brought on by the changes discussed here.

Originally developed by Shadd Shokralla