Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point
On Air
Feedback
Low Graphics
Help

Monday, September 7, 1998 Published at 13:58 GMT 14:58 UK


Business: The Company File

Boeing admits it 'let clients down'

Boeing has flown into difficulties over the last year

The head of the giant US plane manufacturer Boeing has admitted that the company has let its customers down.

Boeing President Harry Stonecipher said such behaviour was "not tolerable, or acceptable".

He added: "Where we have been too arrogant, too distracted, or too self-satisfied, we are going to be much more intense and much more focused on the things that really matter."


[ image: Boeing promises to do better]
Boeing promises to do better
Boeing's recent run of problems had nothing to do with external competition from companies like its European rival, Airbus Industrie, he said at the Farnborough Air Show.

Boeing has had a bad run lately. Last month the firm lost out to Airbus on a huge order for short haul jets from British Airways.

Boeing also announced in August that it would have to cut up to 28,000 jobs.

At the same time it said it was moving some of its activities to California in an attempt to streamline production.

Production last year was hit by delays, causing the company's first full-year financial loss in 50 years.

Internal problems

The firm's problems stemmed from internal inefficiencies, Mr Stonecipher said.

Boeing has recently got rid of its commercial airplane business chief Ron Woodward, who has now been replaced by Alan Mulally.

Mr Stonecipher said the past year had been a difficult one for his company.

"It is not just that our financial performance has suffered - and the performance of our stock.

"Worse, we have shared some of our misery with our customers.

"In particular, we've let down many commercial airplane customers through late deliveries.

"Where we are too big we are going to get smaller.

"Where we have been doing too many things - in too many places - we are going to do fewer things, and just the things that we do better than anyone else."

He said the company had suffered "from a single cause over the past year," and this was not the Airbus consortium or any of its other rivals.

"It has been our own failure to execute inside. This is a company with a great past and an even greater future. All we need to do is execute," Mr Stonecipher said.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Company File Contents

Relevant Stories

07 Sep 98 | Farnborough Air Show
Blair urges aerospace industry to change course

07 Sep 98 | The Company File
Jumbo challenge for Boeing

26 Aug 98 | The Company File
Politics before planes

25 Aug 98 | The Company File
Airbus lands BA deal





Internet Links

Boeing

Airbus


The BBC is not responsible for the content of external internet sites.




In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles