President, Chairman and CEO of The Boeing Company Dennis Muilenburg. -Reuters
Boeing Co is doubling down on its landmark new strategy designed to muscle in on the business of maintenance providers by making its next jet the laboratory for in-house services that could radically alter the global business model for selling planes.
Unlike Boeing's last all-new design, the 787 Dreamliner, its proposed new mid-market plane will not bring a flood of revolutionary technical designs to the drawing board. But it will give the world's largest plane maker a chance to test its new business approach of designing the plane so that it generates lucrative services revenues for Boeing while also offering efficiencies to airlines over the aircraft's decades-long lifespan.
Along with production costs, the new approach could help Boeing decide whether to invest the $15 billion or more in development needed to build the jet."If we decide to launch, it's a big investment and it's an investment that has to contemplate not only the product itself but all of our other strategic objectives," Chairman and Chief Executive Dennis Muilenburg told Reuters. "So you can imagine we would want to look at this airplane through the lens of lifecycle value as we are growing our services business," he said.
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