Boeing
| File:Boeing full logo.svg Logo used since 1997 merger with McDonnell Douglas | |
| Company type | Public |
|---|---|
| Industry | Aerospace, defense, aviation |
| Founded | July 15, 1916 in Seattle, Washington, United States |
| Founder | William E. Boeing |
| Headquarters | Arlington, Virginia , United States |
Area served | Worldwide |
Key people | Dave Calhoun (CEO) |
| Products | Airplanes, rotorcraft, rockets, satellites, missile systems, leasing and product support services |
| Revenue | $62.3 billion (2021) |
Number of employees | Approximately 140,000 (2023) |
| Parent | None |
| Website | www |
The Boeing Company () is a United States-based multinational corporation engaged in the design, production, and sale of airplanes, rotorcraft, rockets, satellites, and missile systems worldwide. Additionally, it offers leasing options and comprehensive product support services. Boeing stands as one of the foremost global aerospace manufacturers and ranks as the fourth-largest defense contractor globally by revenue in 2022. It also holds the distinction of being the top U.S. exporter by monetary value. The company was initially established by William E. Boeing in Seattle on July 15, 1916, and took its current form following a merger with McDonnell Douglas on August 1, 1997.
As of 2023, Boeing's main headquarters are located in the Crystal City area of Arlington County, Virginia. The organization functions through three principal divisions: Boeing Commercial Airplanes (BCA), Boeing Defense, Space & Security (BDS), and Boeing Global Services (BGS). In 2021, Boeing announced sales totaling $62.3 billion. It secured the 54th position on the Fortune 500 ranking and was placed 121st on the Fortune Global 500 list in 2020.
Origins
The origins of The Boeing Company trace back to 1916 when American lumber magnate William E. Boeing founded Pacific Aero Products Company in Seattle, Washington. Prior to this establishment, he collaborated with Conrad Westervelt to develop the "B&W" seaplane. The company adopted the name Boeing Airplane Company in 1917 and later formed Boeing Airplane & Transport Corporation in 1928.[1] By 1929, it evolved into United Aircraft and Transport Corporation, acquiring significant aerospace firms such as Avion, Chance Vought, Sikorsky Aviation, Stearman Aircraft, Pratt & Whitney, and Hamilton Metalplane, thereby expanding its market reach and product range.[2]
In 1931, it consolidated its airline interests under the banner of United Airlines. Regulatory changes in 1934 required separation between manufacturing and airline operations; as a result, Boeing Airplane Company was reestablished as an independent entity alongside United Aircraft (which later became United Technologies) and United Airlines.[2][3]
The acquisition of Vertol Aircraft Corporation in 1960 marked Boeing's initial foray into helicopter manufacturing, enhancing its portfolio with vertical lift aircraft.[4] During the 1960s and 1970s, Boeing diversified its operations into fields including aerospace exploration, marine vessels, agricultural machinery, energy systems, and transit infrastructure projects, broadening its business scope and international footprint.[2]
Sea Launch
In 1995, Boeing collaborated with partners from Russia, Ukraine, and Anglo-Norway to establish Sea Launch, a commercial satellite launch service operating from ocean-based platforms targeting geostationary orbits. In 2000, Boeing further expanded its space-related activities by acquiring Hughes Electronics' satellite division, strengthening its aerospace product and service offerings.
Merger with McDonnell Douglas
In December 1996, Boeing revealed its intention to merge with McDonnell Douglas, finalizing the acquisition on August 4, 1997, following regulatory clearance. The European Commission set several stipulations, such as ending exclusive contracts with U.S. airlines, maintaining independent financial records for McDonnell Douglas’s commercial aircraft division, and sharing certain defense-related patents with competitors. After the merger, differences in corporate culture between Boeing’s engineering teams and McDonnell Douglas’s management affected strategic decision-making and may have contributed to Boeing’s subsequent financial difficulties, including those linked to the 737 MAX debacle.
Corporate headquarters moves
Boeing shifted its main corporate office from Seattle to Chicago in 2001. In 2018, it inaugurated its first manufacturing facility in Europe, located in Sheffield, UK, supported by a collaborative research initiative with the University of Sheffield.
The COVID-19 crisis severely harmed Boeing’s financial health, resulting in over 12,000 job eliminations in May 2020 and plans to reduce the workforce by approximately 10%, equating to about 16,000 positions. By July 2020, the company reported a $2.4 billion loss attributed to the pandemic and ongoing 737 MAX groundings, leading to further workforce and production reductions. CEO Dave Calhoun announced additional layoffs in August 2020; by October, nearly 30,000 employees had been dismissed amid persistent financial strain.
In May 2022, Boeing declared it would relocate its global headquarters from Chicago to Arlington, Virginia, aiming to strengthen ties with defense customers and key stakeholders. After incidents such as Alaska Airlines Flight 1282 in early 2024, a shareholder proposal suggested returning the headquarters to Seattle to enhance engineering oversight; however, Boeing’s board firmly opposed this idea.
In February 2023, Boeing planned to reduce approximately 2,000 positions within its finance and human resources departments. In May 2023, the company expanded its product and service offerings by acquiring Wisk Aero, an autonomous eVTOL air taxi startup.
In June 2024, Boeing agreed to repurchase Spirit AeroSystems—its longtime supplier that had been spun off in 2005—for $4.7 billion, strengthening its manufacturing capabilities and supply chain integration.
Labor strike
On September 12, 2024, machinist employees at Boeing who belong to the International Association of Machinists and Aerospace Workers (IAM) overwhelmingly rejected a proposed contract by a vote of 94.6% against it and showed 96% support for striking. This resulted in Boeing’s first labor strike since 2008, commencing at midnight on September 13.
By October 12, Boeing announced plans to eliminate 17,000 jobs—approximately 10% of its worldwide workforce—to better align with its financial situation. The company also postponed initial deliveries of its 777X aircraft by one year and disclosed third-quarter losses totaling $5 billion. On October 28, Boeing initiated a $19 billion stock offering aimed at boosting liquidity and preventing a possible downgrade of its credit rating.
On November 1, the IAM endorsed a revised contract proposal that included a 38% wage increase over four years, a $12,000 signing bonus upon ratification, and reinstatement of an annual bonus program. Workers voted to accept this agreement on November 5, bringing an end to the seven-week strike.
Divisions
Boeing's operations are organized into three primary segments: Commercial Airplanes; Defense, Space & Security; and Global Services.
- Boeing Commercial Airplanes (BCA) is responsible for producing commercial aircraft such as the 737, 767, 777, and 787, including freighter models and business jet versions. This division employs around 35,000 individuals, predominantly at manufacturing facilities located in Everett, Renton, and South Carolina.
- Boeing Defense, Space & Security (BDS) manufactures military planes, helicopters, missiles, and space-related systems serving both defense and commercial markets, encompassing satellites and launch vehicles.
- Boeing Global Services (BGS) delivers aftermarket solutions such as maintenance, upgrades, and support for Boeing products as well as equipment from other manufacturers.
Boeing 737 MAX crashes and groundings
Between 2018 and 2019, two Boeing 737 MAX jets—Lion Air Flight 610 and Ethiopian Airlines Flight 302—crashed, causing a total of 346 fatalities. These tragedies prompted the worldwide grounding of all 737 MAX aircraft, impacting a fleet of 387 planes. The events significantly damaged Boeing's reputation, disrupted its business strategy, and strained its financial results amid growing criticism of the company's management style and cost-driven decisions. A 2022 Netflix documentary partly attributed these problems to a cultural decline following Boeing’s merger with McDonnell Douglas.
In June 2020, the Federal Aviation Administration (FAA) uncovered several postponed safety corrections on the 737 MAX that violated regulatory standards. A subsequent U.S. House inquiry found that Boeing had emphasized meeting deadlines and budget limits over addressing safety concerns related to the MCAS flight control system involved in both crashes. The investigation also condemned the assumption that simulator training was unnecessary, which compromised pilot readiness and hindered design improvements. In January 2021, Boeing settled fraud charges by agreeing to pay $2.5 billion for concealing critical safety information from regulators—covering penalties for airlines and victims affected by the crashes.
By September 2022, Boeing made an additional payment of $200 million linked to misleading investors about these safety risks. In March 2023, the company faced backlash after court documents challenged claims about victims’ suffering during the Ethiopian Airlines crash.
Amid managing these challenges, Boeing progressed with the development of the 777X, its largest twin-engine aircraft. The plane’s first flight occurred in January 2020 but was followed by technical difficulties during testing phases. These setbacks postponed its initial delivery timeline by several years to at least 2025, disrupting Boeing’s product launch schedule.
Alaska Airlines Flight 1282
On January 5, 2024, Alaska Airlines Flight 1282 encountered a door plug failure on a Boeing 737 MAX 9 shortly after ascending to approximately 16,000 feet altitude. This malfunction created a hole roughly the size of a door in the fuselage and necessitated an emergency landing at Portland International Airport. Several passengers sustained injuries but were later medically cleared. In response, the FAA grounded 171 Boeing 737 MAX 9 jets equipped with similar door plugs worldwide, triggering urgent inspections.
United Airlines identified loose bolts on some of these grounded aircraft, raising alarms about potential systemic production flaws in the 737 MAX 9 line. Subsequently, the FAA broadened its oversight by initiating a production audit of this model. In February 2024, the National Transportation Safety Board disclosed that four bolts securing the panel had been removed but not reinstalled at Boeing’s Renton facility—revealing serious lapses in quality control.
In March 2024, the U.S. Department of Justice commenced a criminal probe into this event. Following these developments, Boeing CEO Dave Calhoun and board chairman Larry Kellner announced their resignations amid intensified scrutiny over corporate governance and product safety practices.
Environmental record
In 2006, the UCLA Center for Environmental Risk Reduction uncovered contamination involving toxic and radioactive substances at Boeing's Santa Susana Field Laboratory, a former Rocketdyne testing location in Southern California. Boeing consented to an EPA-mandated cleanup plan in 2017, while associated research and legal actions remain ongoing.
Boeing disclosed that each aircraft delivered in 2020 is responsible for roughly one million tons of carbon dioxide emissions throughout its operational life. Demonstrating a strategic commitment to sustainability, Boeing extended its collaboration with Mitsubishi in July 2022 to advance carbon-neutral and eco-friendly aviation technologies.
Jet biofuels
The aviation sector contributes approximately 11% of greenhouse gas emissions generated by U.S. transportation. Boeing projects that biofuels have the potential to lower emissions from flights by 60–80% through blending algae-derived fuels with traditional jet fuel. The company partners internationally with biofuel innovators such as Brazil’s Tecbio and New Zealand’s Aquaflow Bionomic, having tested numerous fuel types and targeting evaluations of up to 20 variants.
Since joining the Algal Biomass Organization in 2008, Boeing has reinforced its dedication to developing sustainable aviation fuels. Collaborating with Air New Zealand, Boeing explored the jatropha plant as an alternative energy source; a successful two-hour test flight using a 50/50 jatropha-jet fuel mixture took place in December 2008 without any performance issues.
Political contributions, federal contracts, advocacy and criticism
Between 2007 and 2008, Boeing received more than $10 billion in long-term loan guarantees from the Export-Import Bank of the United States to finance commercial airplane acquisitions in nations such as Brazil, Canada, Ireland, and the United Arab Emirates. These guarantees accounted for about 65% of the bank’s total commitments during that timeframe.
In fiscal years 2008 and 2009, Boeing was ranked second among the Top 100 US Federal Contractors, obtaining contracts valued at $22 billion and $23 billion respectively. From 1995 through early 2021, the company paid $4.3 billion to resolve 84 cases involving misconduct, including a $615 million settlement in 2006 linked to unlawful hiring of government officials and improper use of confidential information.
Boeing invested $16.9 million in lobbying efforts during 2009. Throughout the 2008 presidential election cycle, employees and executives contributed $197,000 to Barack Obama—approximately five times the amount donated to John McCain.
The firm’s corporate citizenship initiatives emphasize charitable giving across education, health care, human services, environmental causes, arts and culture, as well as civic participation. In 2012, Boeing collaborated with Insight Labs to create innovative leadership models for foundations.
As part of the U.S. Global Leadership Coalition, Boeing advocates for increased budgets supporting American diplomatic and development programs overseas. U.S. diplomatic communications reveal that government representatives frequently promote Boeing’s international sales efforts.
In 2013, Boeing secured what became the largest state-level tax incentives ever granted in the United States. In March 2025, Boeing was awarded a contract exceeding $20 billion to manufacture the U.S. Air Force’s Next Generation Air Dominance fighter aircraft.
Criticism
In December 2011, the impartial group Public Campaign condemned Boeing for allocating $52.29 million toward lobbying efforts and evading taxes between 2008 and 2010, despite receiving $178 million in tax rebates while reporting a profit of $9.7 billion. Over this timeframe, Boeing reduced its workforce by 14,862 employees and raised executive pay for its top five executives by 31%, totaling $41.9 million.
Boeing was also accused of breaching the Procurement Integrity Act through unethical conduct when submitting a revised proposal to NASA for a lunar landing contract.
War profiteering
Boeing has drawn criticism for capitalizing on armed conflicts, including providing weaponry used in the Yemen war, where missiles supplied were connected to civilian casualties. In 2017, the company secured agreements with Saudi Arabia involving military aircraft and missile systems. Studies estimate Boeing’s earnings from Israeli arms contracts ranged between $50 billion and $100 billion from 2009 through 2022.
During the initial Israeli air strikes on Gaza in 2023, Boeing delivered 1,000 small diameter precision-guided bombs via a US Air Force base, which were deployed by the Israeli Air Force. This activity coincided with a rise in Boeing’s stock value amid expanding Israeli defense agreements. Simultaneously, protests erupted at Boeing facilities in Missouri, Washington, and Oregon over alleged breaches of International humanitarian law. Student organizations at institutions such as Florida State University, University of Washington, and multiple St. Louis universities advocated for divestment from Boeing.
In 2024, students engaging in hunger strikes at Brown University demanded divestment from Boeing alongside other corporations. Demonstrations that obstructed access to Boeing plants in Ohio resulted in felony charges against some protesters. The student government at Washington University in St. Louis passed a resolution calling for divestment from the company.
Israel has utilized Boeing-produced GBU-39 Small Diameter Bombs during the Gaza conflict, including attacks on the Rafah refugee tent camp and educational facilities like Al-Sardi and Al-Tabaeen schools, actions that have drawn widespread international criticism.
Financials
Boeing’s principal financial indicators (fiscal years ending December 31) illustrate its revenue, net earnings or losses, and employee numbers:
| Year | Revenue in billion US$ |
Net income (loss) in billion US$ |
Employees |
|---|---|---|---|
| 2005 | 53.6 | 2.5 | |
| 2006 | 61.5 | 2.2 | |
| 2007 | 66.3 | 4.0 | |
| 2008 | 60.9 | 2.6 | |
| 2009 | 68.2 | 1.3 | |
| 2010 | 64.3 | 3.2 | |
| 2011 | 68.7 | 4.0 | |
| 2012 | 81.6 | 3.9 | |
| 2013 | 86.6 | 4.5 | 168,400 |
| 2014 | 90.7 | 5.4 | 165,500 |
| 2015 | 96.1 | 5.1 | 161,400 |
| 2016 | 94.5 | 4.8 | 150,500 |
| 2017 | 93.3 | 8.1 | 140,800 |
| 2018 | 101 | 10.4 | 153,000 |
| 2019 | 76.5 | (0.63) | 161,000 |
| 2020 | 58.1 | (11.9) | 141,014 |
| 2021 | 62.2 | (4.2) | 140,000 |
| 2022 | 66.6 | (5.1) | 156,000 |
| 2023 | 77.7 | (2.2) | 171,000 |
| 2024 | 66.5 | (11.8) | 172,000 |
| Business | Revenue in billion $ |
Revenue share |
|---|---|---|
| 22.9 | 34.4% | ||
| 23.9 | 36.0% | ||
| 20.0 | 30.1% | ||
| (0.2) | (0.003%) |
Between the years of 2010 and 2018, Boeing expanded its operating cash flow from $3 billion to $15.3 billion by utilizing customer prepayments and extending payment terms with suppliers—a tactic reliant on robust order volumes and timely deliveries.
From 2013 through 2019, the company spent more than $60 billion on dividends and share repurchases—amounting to twice the development expenses of the 787 program—underscoring its emphasis on shareholder value.
The COVID-19 crisis had a significant negative effect on revenue: during Q2 of 2020, revenue fell to $11.8 billion but improved to nearly $17 billion by Q2 of the following year due to increased deliveries and sales across other sectors.
Nevertheless, Q2 revenue declined by approximately 15% to $16.9 billion in 2024 compared to the prior year; operating losses reached $1.39 billion with net losses totaling $1.43 billion as aircraft deliveries decreased from 136 to just 92 units.
Overall, Boeing produced only 348 aircraft throughout 2024—the lowest annual output since the pandemic—and closed the year with an order backlog of 5,595 planes yet to be fulfilled, illustrating persistent operational difficulties impacting growth and financial results.
Employment figures
As of December 31, 2023, Boeing's workforce totaled 170,688 employees distributed among its divisions: Boeing Commercial Airplanes with 47,948 staff, Boeing Defense, Space & Security employing 17,925 individuals, Global Services with 22,323 personnel, and Enterprise operations comprising 82,492 workers.
Geographically, the largest employee concentration is in Washington state, hosting 66,797 workers. This is followed by Missouri with 16,681 employees, California with 14,403, and other significant states including Arizona, South Carolina, Texas, and Alabama.
Around 1.5% of Boeing’s workforce is engaged in the Technical Fellowship program, which plays a pivotal role in shaping the company’s technical strategy. The average annual salary recorded in 2011 was $76,784.
Corporate governance
In May 2022, Boeing shifted its global headquarters from Chicago to Arlington, Virginia. Concurrently, it inaugurated a new research and technology center in Northern Virginia to enhance its innovation efforts.
Kelly Ortberg took over as CEO in July 2024, succeeding Dave Calhoun. Ortberg’s leadership prioritizes strengthening Boeing’s position as an industry leader and driving strategic expansion. Soon after his appointment, he held discussions with FAA Administrator Michael Whitaker regarding Boeing’s future plans and regulatory partnerships.
Boeing’s governance has undergone criticism as depicted in the 2022 documentary Downfall: The Case Against Boeing, which highlights changes in the company’s business approach that emphasize Wall Street interests over engineering quality.
Board
As of , Boeing is governed by a President who also fulfills the CEO role. Since October 2019, the positions of Chair of the Board and CEO have been distinct.
| Chair of the Board | |
|---|---|
| Name | Experience |
| Steve Mollenkopf | Former CEO of Qualcomm |
| Board of Directors | |
| Name | Experience |
| Robert A. Bradway | Chairman and CEO at Amgen |
| Dave Calhoun[lower-alpha 1] | President and CEO of The Boeing Company |
| Lynne M. Doughttie | Ex-U.S. chair and CEO of KPMG |
| Edmund Giambastiani | Former Vice-chair of U.S. Joint Chiefs of Staff; Ex-NATO Supreme Allied Commander Transformation |
| Lynn Good | Chairman, President and CEO at Duke Energy |
| Stayce Harris | Former pilot at United Airlines; Ex-Inspector General for U.S. Air Force |
| Akhil Johri | Ex-Executive VP and CFO of United Technologies Corporation |
| David L. Joyce | Former President and CEO of GE Aviation; Ex-Vice-chair at General Electric Company |
| Larry Kellner[lower-alpha 2] | Former Chairman and CEO of Continental Airlines |
| John M. Richardson | Ex-Chief of Naval Operations and Director of Naval Nuclear Propulsion Program for U.S. Navy |
| Ron Williams | Former Chairman, President and CEO at Aetna |
Previous leadership
1986–1996 Frank Shrontz (CEO, President, Chairman) 1996–2003 Philip M. Condit (CEO & Chairman) 2003–2005 Harry Stonecipher (CEO & President); Lewis E. Platt (Chairman) 2005–2015 James McNerney (CEO, President & Chairman) 2015–2019 Dennis Muilenburg (CEO & President)Cite error: Invalid<ref> tag; refs with no name must have content[5]
2019–present
Dave Calhoun (CEO & President); Lawrence Kellner (Chairman until 2024)
2024–present
Steve Mollenkopf (Chairman); Kelly Ortberg (President)
| Chief Executive Officer | President | Chairman | |||
|---|---|---|---|---|---|
| Not Applicable | Role not established | Not Applicable | Role not established | 1916–1934 | William Boeing, Founder |
| 1922–1925 | Edgar Gott | ||||
| 1926–1933 | Philip G. Johnson | ||||
| 1933–1939 | Claire Egtvedt | 1933–1939 | Claire Egtvedt | 1934–1968 | Claire Egtvedt |
| 1939–1944 | Philip G. Johnson | 1939–1944 | Philip G. Johnson | ||
| 1944–1945 | Claire Egtvedt | 1944–1945 | Claire Egtvedt | ||
| 1945–1968 | William McPherson Allen | 1945–1968 | William M. Allen | ||
| 1969–1986 | Thornton Wilson | 1968–1972 | Thornton Wilson | 1968–1972 | William M. Allen |
| 1972–1985 | (Malcolm T. Stamper) | (1972–1987) | (Thornton Wilson) | ||
See also
- Boeing Everett Factory – primary site for the assembly of commercial widebody airplanes
- Competition between Airbus and Boeing
- Downfall: The Case Against Boeing – Netflix documentary covering Boeing’s safety record and corporate governance
- Future of Flight Aviation Center & Boeing Tour – publicly accessible corporate museum
- United Aircraft Corporation
- United States Air Force Plant 42
Further reading
External links
- The Joystick (Boeing Aircraft Club) – Digital Collections of The Museum of Flight
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