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The Boeing Company
  • Pacific Aero Products Co. (1916–1917)
  • Boeing Airplane Company (1917–1961)[1][2]
Traded as
ISINUS0970231058 Edit this on Wikidata
FoundedJuly 15, 1916; 103 years ago (1916-07-15) (as Pacific Aero Products Co.)
Seattle, Washington, U.S.
FounderWilliam E. Boeing
HeadquartersBoeing International Headquarters, ,
Area served
Key people
Larry Kellner
Dave Calhoun
(President and CEO)
Production output
  • 380 commercial aircraft (2019)
  • 229 military aircraft (2019)
  • 2 satellites (2019)
  • Leasing
  • Support solutions[3](pp35–36)
RevenueDecrease US$ 76.56 billion (2019)
Decrease US$ −1.975 billion (2019)
Decrease US$ −636 million (2019)
Total assetsIncrease US$ 133.625 billion (2019)
Total equityDecrease US$ −8.300 billion (2019)
Number of employees
161,133 (January 1, 2020)[4]
Footnotes / references

The Boeing Company (/ˈbɪŋ/) is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers; it is the second-largest defense contractor in the world based on 2018 revenue,[6] and is the largest exporter in the United States by dollar value.[7] Boeing stock is included in the Dow Jones Industrial Average. Boeing is incorporated in Delaware.[8]

Boeing was founded by William Boeing in Seattle, Washington on July 15, 1916.[9] The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. Then chairman and CEO of Boeing, Philip M. Condit, assumed those roles in the combined company, while Harry Stonecipher, former CEO of McDonnell Douglas, became president and COO.[9]

The Boeing Company has its corporate headquarters in Chicago, Illinois.[10] Boeing is organized into five primary divisions: Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group. In 2017, Boeing recorded US$93.3 billion in sales, ranked 24th on the Fortune magazine "Fortune 500" list (2018),[11] ranked 64th on the "Fortune Global 500" list (2018),[12] and ranked 19th on the "World's Most Admired Companies" list (2018).[13] In 2019, Boeing's global reputation, commercial business, and financial rating suffered after the 737 MAX was grounded worldwide following two fatal crashes in late 2018 and early 2019.

The firm has also been criticized for supplying and profiting from wars, including the war in Yemen where its missiles were found to be used for indiscriminate attacks, killing many civilians.[14][15]


The Boeing Company was started in 1916, when American lumber industrialist William E. Boeing founded Aero Products Company in Seattle, Washington. Shortly before doing so, he and Conrad Westervelt created the "B&W" seaplane.[16][17] In 1917, the organization was renamed Boeing Airplane Company, with William Boeing forming Boeing Airplane & Transport Corporation in 1928.[16] In 1929, the company was renamed United Aircraft and Transport Corporation, followed by the acquisition of several aircraft makers such as Avion, Chance Vought, Sikorsky Aviation, Stearman Aircraft, Pratt & Whitney, and Hamilton Metalplane.[2]

In 1931, the group merged its four smaller airlines into United Airlines. In 1934, the manufacture of aircraft was required to be separate from air transportation.[18] Therefore, Boeing Airplane Company became one of three organizations to arise from dissolution of United Aircraft and Transport; the other two groups were United Aircraft (later United Technologies) and United Airlines.[2][18]

In 1960, the company bought Vertol Corporation, which at the time, was the biggest independent fabricator of helicopters.[19] During the 1960s and 1970s, the company diversified into industries such as outer space travel, marine craft, agriculture, energy production and transit systems.[2]

In 1995, Boeing partnered with Russian, Ukrainian and Anglo-Norwegian organizations to create Sea Launch, a company providing commercial launch services sending satellites to geostationary orbit from floating platforms.[20] In 2000, Boeing acquired the satellite segment of Hughes Electronics.[2][21]

Corporate headquarters were moved from Seattle to Chicago in 2001.[22]

After two fatal crashes of the Boeing 737 MAX narrow-body passenger airplanes in 2018 and 2019, aviation regulators and airlines around the world grounded all 737 MAX airliners.[23] A total of 387 aircraft were grounded.[24] Boeing's reputation, business, and financial rating has suffered after these groundings, questioning Boeing's strategy, governance, and focus on profits and cost efficiency.[25][26][27] The Wall Street Journal reported on May 5, 2019 that Boeing had known of the issue with the system for "about a year" before the crash in Indonesia.[28] In December 2019, Boeing announced it will suspend 737 MAX production from January 2020.[29] Soon after, on December 23, then CEO Dennis Muilenburg resigned and was replaced by David Calhoun.[30]

In May 2020, the company cut 12,000 jobs due to the drop in air travel during the COVID-19 pandemic.[31]


The corporation's three main divisions are Boeing Commercial Airplanes (BCA), Boeing Defense, Space & Security (BDS), and Boeing Global Services.[32]

Environmental record

In 2006, the UCLA Center for Environmental Risk Reduction released a study showing that Boeing's Santa Susana Field Laboratory, a site that was a former Rocketdyne test and development site in the Simi Hills of eastern Ventura County in Southern California, had been contaminated by Rocketdyne with toxic and radioactive waste. Boeing agreed to a cleanup agreement with the EPA in 2017.[33] Clean up studies and lawsuits are in progress.[34]

Jet biofuels

The airline industry is responsible for about 11% of greenhouse gases emitted by the U.S. transportation sector.[35] Aviation's share of the greenhouse gas emissions was poised to grow, as air travel increases and ground vehicles use more alternative fuels like ethanol and biodiesel.[35] Boeing estimates that biofuels could reduce flight-related greenhouse-gas emissions by 60 to 80%.[35] The solution blends algae fuels with existing jet fuel.[35]

Boeing executives said the company was collaborating with Brazilian biofuels maker Tecbio, Aquaflow Bionomic of New Zealand, and other fuel developers around the world. As of 2007, Boeing had tested six fuels from these companies, and expected to test 20 fuels "by the time we're done evaluating them".[35] Boeing also joined other aviation-related members in the Algal Biomass Organization (ABO) in June 2008.[36]

Air New Zealand and Boeing are researching the jatropha plant to see if it is a sustainable alternative to conventional fuel.[37] A two-hour test flight using a 50–50 mixture of the new biofuel with Jet A-1 in a Rolls Royce RB-211 engine of a 747-400 was completed on December 30, 2008.[38] The engine was then removed to be studied to identify any differences between the Jatropha blend and regular Jet A1. No effects on performances were found.[38]

On August 31, 2010, Boeing worked with the U.S. Air Force to test the Boeing C-17 running on 50% JP-8, 25% Hydro-treated Renewable Jet fuel and 25% of a Fischer–Tropsch fuel with successful results.[39]

Electric propulsion

For NASA's N+3 future airliner program, Boeing has determined that hybrid electric engine technology is by far the best choice for its subsonic design. Hybrid electric propulsion has the potential to shorten takeoff distance and reduce noise.[40]

Political contributions, federal contracts, advocacy

Boeing CEO Dennis Muilenburg and President Trump at the 787-10 Dreamliner rollout ceremony
Boeing CEO Dennis Muilenburg and President Trump at the 787-10 Dreamliner rollout ceremony

In 2008 and 2009, Boeing was second on the list of Top 100 US Federal Contractors, with contracts totaling US$22 billion and US$23 billion respectively.[41][42] Since 1995, the company has agreed to pay US$1.6 billion to settle 39 instances of misconduct, including US$615 million in 2006 in relation to illegal hiring of government officials and improper use of proprietary information.[43][44]

Boeing secured the highest ever tax breaks at the state level in 2013.[45]

Boeing's spent US$16.9 million on lobbying expenditures in 2009.[46][47] In the 2008 presidential election, Barack Obama "was by far the biggest recipient of campaign contributions from Boeing employees and executives, hauling in US$197,000 – five times as much as John McCain, and more than the top eight Republicans combined".[48]

Boeing has a corporate citizenship program centered on charitable contributions in five areas: education, health, human services, environment, the arts, culture, and civic engagement.[49][better source needed] In 2011, Boeing spent US$147.3 million in these areas through charitable grants and business sponsorships.[50] In February 2012, Boeing Global Corporate Citizenship partnered with the Insight Labs to develop a new model for foundations to more effectively lead the sectors they serve.[51][better source needed]

The company is a member of the U.S. Global Leadership Coalition, a Washington D.C.-based coalition of more than 400 major companies and NGOs that advocate a larger International Affairs Budget, which funds American diplomatic and development efforts abroad.[52] A series of U.S. diplomatic cables show how U.S. diplomats and senior politicians intervene on behalf of Boeing to help boost the company's sales.[53]

In 2007 and 2008, the company benefited from over US$10 billion of long-term loan guarantees, helping finance the purchase of their commercial aircraft in countries including Brazil, Canada, Ireland, and the United Arab Emirates, from the Export-Import Bank of the United States, some 65% of the total loan guarantees the bank made in the period.[54]

In December 2011, the non-partisan organization Public Campaign criticized Boeing for spending US$52.29 million on lobbying and not paying taxes during 2008–2010, instead getting US$178 million in tax rebates, despite making a profit of US$9.7 billion, laying off 14,862 workers since 2008, and increasing executive pay by 31% to US$41.9 million in 2010 for its top five executives.[55]


For the fiscal year 2017, Boeing reported earnings of US$8.191 billion, with an annual revenue of US$93.392 billion, a 1.25% decline over the previous fiscal cycle. Boeing's shares traded at over $209 per share, and its market capitalization was valued at over US$206.6 billion.[56]

Year Revenue
in million US$
Net income
in mil. US$
Price per Share
in US$
2005 53,621 2,572 45.42
2006 61,530 2,215 59.20
2007 66,387 4,074 71.05
2008 60,909 2,672 50.76
2009 68,281[57] 1,312 35.73
2010 64,306[58] 3,298 53.89
2011 68,735[59] 4,009 58.20
2012 81,698[60] 3,900 62.65
2013 86,623[61] 4,578 90.39 168,400
2014 90,762[62] 5,440 114.72 165,500
2015 96,114[63] 5,172 131.43 161,400
2016 94,571[64] 4,892 125.66 150,500
2017 93,392[65] 8,191 209.85 140,800
2018 101,127[66] 10,460 319.05 153,000
2019 76,559[67] (636) 325.76

Between 2010 and 2018, Boeing increased its operating cash flow from $3 to $15.3 billion, sustaining its share price, by negotiating advance payments from customers and delaying payments to its suppliers. This strategy is sustainable only as long as orders are good and delivery rates are increasing.[68]

From 2013 to 2019, Boeing spent over $60 billion on dividends and stock buybacks, twice as much as the development costs of the 787.[69]

Employment numbers

The company's employment totals are listed below.

Employment by group
(Jan. 1, 2020)[70]
Group Employees
Boeing Commercial Airplanes (BCA) 64,529
Boeing Defense, Space & Security (BDS) 33,757
Global Services 24,985
Corporate 37,862
Total Company 161,133
Employment by location
(Jan. 1, 2020)[70]
Location Employees
Alabama 3,062
Arizona 4,655
California 13,441
Missouri 15,740
Oklahoma 3,392
Pennsylvania 4,633
South Carolina 6,869
Texas 4,768
Washington 71,829
Other locations 32,744
Total Company 161,133

Approximately 1.5% of Boeing employees are in the Technical Fellowship program, a program through which Boeing's top engineers and scientists set technical direction for the company.[71] The average salary at Boeing is $76,784, reported by former employees.[72]

Corporate governance

Board of directors

Chief executive officer

1933–1939 Clairmont "Claire" L. Egtvedt[76]
1939–1944 Philip G. Johnson
1944–1945 Clairmont L. Egtvedt
1945–1968 William M. Allen
1969–1986 Thornton "T" A. Wilson
1986–1996 Frank Shrontz[77]
1996–2003 Philip M. Condit
2003–2005 Harry C. Stonecipher
2005 James A. Bell (acting)
2005–2015 James McNerney
2015–2019 Dennis Muilenburg[78]
2020–present David L. Calhoun

Chairman of the board

1916–1934 William E. Boeing
1934–1939 Clairmont L. Egtvedt (acting)
1939–1966 Clairmont L. Egtvedt
1968–1972 William M. Allen
1972–1987 Thornton "T" A. Wilson
1988–1996 Frank Shrontz
1997–2003 Philip M. Condit
2003–2005 Lewis E. Platt
2005–2016 James McNerney
2016–2019 Dennis Muilenburg
2019 David L. Calhoun
2019–present Lawrence W. Kellner


1922–1925 Edgar N. Gott[79]
1926–1933 Philip G. Johnson
1933–1939 Clairmont L. Egtvedt
1939–1944 Philip G. Johnson
1944–1945 Clairmont L. Egtvedt
1945–1968 William M. Allen
1968–1972 Thornton "T" A. Wilson
1972–1985 Malcolm T. Stamper
1985–1996 Frank Shrontz
1996–1997 Philip M. Condit
1997–2005 Harry C. Stonecipher
2005 James A. Bell (acting)
2005–2013 James McNerney
2013–2019 Dennis Muilenburg[80]
2020–present David L. Calhoun


  • As of October 11, 2019, the roles of chairman and chief executive officer are separated.[81]

See also


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Further reading

  • Cloud, Dana L. We Are the Union: Democratic Unionism and Dissent at Boeing. Urbana, IL: University of Illinois Press, 2011.
  • Greider, William. One World, Ready or Not: The Manic Logic of Global Capitalism. London: Penguin Press, 1997.
  • Reed, Polly. Capitalist Family Values: Gender, Work, and Corporate Culture at Boeing. Lincoln, NE: University of Nebraska Press, 2015.

External links

This page was last edited on 3 July 2020, at 06:33
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