Boeing has invested in 215 organic projects to grow its services business, one of those is exploring a 777-300ER passenger to freighter conversion. “We’ve been talking to customers about market acceptance and pricing, and we’re in the midst of working the business case,” says Stan Deal, president and CEO of Boeing Global Services.
The robust global freight demand, and subsequent need for cargo aircraft, is “largely driven from an ecommerce explosion in the U.S., Europe and China,” says Deal.
He says that around 2022, the 777-300ER “will be in a timeframe when it will be ripe for a conversion or a second life.”
That timing is partly cued by the fact Boeing targets first customer deliveries of its 777X in 2020. The first 777X, referred to as a static airplane, rolled off the production line in September. Aircraft in the flight test program should take to the air in 2019.
Of the 215 organic projects, Deal says the 777-300ER Boeing Converted Freighter “is a big one.” The array of projects also spans upgrades to existing capabilities as well, such as the recent release of Jeppesen Flitedeck 4.0, which provides pilots maps, charts and documents necessary for paperless flying.
Another is further integrating Boeing’s supply chain system ecosystem, says Deal. “We’re still at the front-end of that journey. We have warehouse consolidation still to occur into 2019. That will drive costs out that we can take to market.”
Boeing’s purchase of KLX for $4.25 billion, which closed on Oct. 9, is integral to its supply chain ecosystem strategy and has been its largest acquisition since buying McDonnell Douglas in 1997 for $13.3 billion.