Boeing Global Services (BGS) is a long way from the company's notional annual revenue goal of $50 billion, but deals like the one revealed Nov. 15 with Oman Air are the types of agreements it says it plans to rack up on the way to hitting its marks.
Oman Air has expanded its Boeing Fleet Care Program to include line-replaceable units, such as integrated drive generators and hydraulic pumps, for the Rolls-Royce Trent 1000 engines that power its 787s. The airline in 2015 signed a deal to have Boeing cover its 787 components, including exchange and repair services. The carrier has 13 787s in service or on order, Aviation Week's Commercial Aviation Fleet database shows.
“The ability to customize our propulsion support will augment our overall maintenance operations flexibility for our fleet,” said Ali Redha Al-Lawatiya, executive vice president engineering and maintenance, Oman Air. “It is a great addition to our long-term partnership.”
The deal is more significant for Boeing, however, as it seeks to grow BGS from its $14.5 billion annual-revenue figure, about half of which is generated by commercial business.
Growth was slow last quarter—the first in which Boeing reported on BGS as a stand-alone unit.
Boeing executives, who signaled a start to their aftermarket push several years ago, maintain the drive to $50 billion will focus on organic growth—winning more customers, expanding business with existing customers, and developing new offerings—as opposed to acquisitions. Analysts question this, even as Boeing continues to roll out new ventures, such as an expanded avionics business, and add to its fleet-support customer base.