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Paris Air Show 2017: Boeing to create new Global Services division

19 June 2017
A US Air Force Boeing KC-135 aerial refuelling tanker seen at the company's overhaul and repair facility in San Antonio, Texas. Boeing's new Global Services division is to be headquartered in nearby Dallas. Source: IHS Markit/Gareth Jennings

Boeing is to stand up a new Global Services division to operate alongside its current Commercial Airplanes and Defense Space and Security organisations.

Speaking to reporters in May, ahead of the Paris Air Show, the president for the new division, Stan Deal, said that the division will bring together many of the overlapping capabilities from the commercial and defence branches of the company from July.

"We had two service companies within Boeing - Global Services and Support (GS&S) and Commercial Aviation Services. On 21 November [2016] Boeing announced its intent to bring those two together into a new operating division from July of this year," Deal said. "Boeing will now be broken down into Defense Space and Security, Commercial Airplanes, and Global Services. Global Services will serve both governments and commercial operators around the world," he added.

With Boeing Defense Space and Security headquartered in Berkeley, Missouri, and Boeing Commercial Aircraft headquartered in Renton, Washington, Boeing Global Services will be headquartered in Dallas, Texas. Deal explained, "Dallas is a central location in the US, with a logistically great airport. There is no other reason than that."

Boeing has decided to merge its current disparate services organisations into one division largely to eliminate overlap, and to allow it to better tap into the estimated USD2.4 trillion market for aviation services over the next 10 years.

"Between the defence and commercial divisions we had four major capabilities that overlapped," Deal said. "In both market segments there was a unique set of supply-chain capabilities and parts programmes, as well as 'power by the hour' logistics agreements and the global distribution of parts.

"The second set of overlapping capabilities is our engineering, maintenance, and modifications work, which covers our ability to take an existing aircraft and repurpose it [such as the 737 commercial jet into the P-8 Poseidon maritime multimission aircraft], or doing aircraft maintenance such as at San Antonio in Texas.

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