e-Enabled Advantage

Company Background

1881 Oct. 1:William E. Boeing is born in Detroit, Mich.

William Boeing founded an aircraft manufacturing company in the Puget

1916
Sound region of Washington State
1954 Boeing made its entry into commercial aviation with Boeing 707.
1992 Boeing employed nearly 150.000 people and posted net earnings of $1.55
billion.
1996 August: Boeing Acquires Rockwell International Corporation aerospace
and defense business
December: Boeing announces merger with McDonell Douglas

1997 Hurt by production delays, Boeing continues to improve production

process; adopt "lean manufacturing"
1998 Allan Mulally replaces Ron Woodard as president of Boeing Commercial
Airplanes; Scott Carson named Chief Financial Officer
Commercial Aviation Services business unit formed within Boeing
Commercial Airplanes
Acquires Preston Aviation Solutions
Company Background

2000 Acquires Hughes Electronic Corporation's space and communications

businesses, Jeppesen Sanderson, Inc., and Continental Data Graphics.
Create two new Services business units: Air Traffic Management and
Connexion by Boeing ; Scott Carson named president of Connexion by
Boeing
2001 Acquires SBS International
Launches MyBoeingFleet.com
Moves corporate headquarters to Chicago
Reorganizes into six business units
2003 e-Enabled Advantage unveiled at 2003 Paris Air Show
ValSim Launched
2004 e-Enabled Advantage program launched, led by Chris Kettering
Carson named senior vice president of marketing and sales for Boeing
Commercial Airplane Company
Vision 2016
People Working together as a global enterprise
for aerospace leadership
Strategies Values

 Run healthy core businesses  Leadership

 Leverage strengths into new products and services  Integrity

 Open new frontiers  Quality
 Customer satisfaction
Core competencies  People working together

 Detailed customer knowledge and focus  A diverse and involved team

 Large-scale systems integration  Good corporate citizenship

 Lean enterprise  Enhancing shareholder value

Phil Condit: www.boeing.com/vision

Boeing Organization 2006
Chairman, President,
CEO
W. James McNerny, Jr.

Executive VP, President

and CEO Commercial
Airplanes
Alan Mulally

Coomercial Aviation
Services
Lou Mancini

e-Enabled Program
Manager Chris Kettering

Technical Integration & Service Solutions Consultative

Business Integration
Architecture Business Development Development
Airbus & Boeing Orders &
Orders
Deliveries
1200
1055
1000 1031

800
713 712
600 606 598 Boeing
544 556
513 520 Airbus
441 460 476
400 421 404
355 375 370
326 314 300
275 267 251 284
249 277
236
200
101 136 125 106
38
0
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Deliveries
700

600 606 620

572 563
527 527
500 491

400 409
375 381 378
Boeing
312 311 325 320
300 294 303 305 285 290 Airbus
271 281
256
229
200 182
163 157 138 123 124 126
100 105 95
35
0
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Boeing Organization 2004
The Evolution of e-Enabling
Year What
1960 and 1970 Airline Computer Reservations Systems
1970 and 1980 ACARS
1980s Mileage programs
1989 Boeing 747 - 400
1995 Boeing 777
1990 Online reservation and revenue management systems changed ticketing
e-Tickets
Check-in kiosks streamlined the airport experience
2001 My Boeing Fleet (MBF)
2008 Boeing 787
e-Enabled Advantage Components
1. Solutions Consulting 8. Jeppesen Data
2. Portable Maintenance Aid 9. e-Link
3. Airplane Health Management 10. Hosted Ops Control
4. Integrated Materials Management 11. Core Network
5. SBS Products 12. Connexion by Boeing
6. Enterprise One 13. My Boeing Fleet
7. Electronic Flight Bag (EFB) 14. VPN Access
Airline Costs & Potential Benefits
of e-Enabled Advantage
Overall Spend e-Enabled Benefit e-Enabled Benefit e-Enabled Benefit e-Enabled Benefit
Cost Areas
($ million) Low (%) Hight (%) Low ($ million) Hight ($ million)

Flight Operations 80,349 2% 4% 1,991 3,398

Maintenance Operations 27,231 10 30 2,662 8,038
Passenger Services 26,437 1 1 132 264
Own/Lease 28,023 16 27 4,371 7,433
Ground Operations 38,098 0 6 144 2,455
Ticket Sales and Promotion 26,437 16 26 4,230 6,874
Other 18,767 0 5 0 938
G&A 19,027 4 7 731 1,310
Scheduled Services 237,472 4 6 9,171 14,259
Total 273,588 23,432 44,969