Boeing under Phil Condit

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Case Details:

Case Code : BSTR098
Case Length : 14 Pages
Period : 1992 - 2004
Organization : Boeing Inc
Pub Date : 2004
Teaching Note : Available
Countries : USA
Industry : Aerospace Industry

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

The history of Boeing can be traced back to the early 1900s, when aviation enthusiasts William Boeing (William) and George Westervelt (Westervelt), built a twin-float seaplane called B&W (named after their initials).

Before the design could be completed, Westervelt, who was a naval engineer, was posted away from Seattle (where the aircraft manufacturing facility was based) and William continued alone.

In July 1916, William incorporated his aircraft manufacturing business under the name Pacific Aero Products Company. A year later, the name was changed to Boeing Airplane and Transport Corporation (BATC).

During the First World War, the company grew by building and selling seaplanes to the US Navy. By 1920, BATC had designed and manufactured several prototypes of planes, but none of them went into commercial production.

In the 1920s, BATC began building trainer planes for the US Navy and also began using some of the planes in its fleet to deliver mail.

By the end of the 1920s, the company had begun passenger services as well. On February 1, 1929, the BATC's name was changed to United Aircraft and Transportation Corporation (UATC). It built airplanes, engines and propellers; delivered mail; maintained airports; and ran airlines across the country.

After the depression of the early-1930s, antitrust legislation in the US prevented airframe manufacturers from owning mail-carrying airlines.

UATC therefore, became three entities:

United Air Lines (responsible for air transportation), United Aircraft (responsible for manufacturing operations in the eastern United States), and The Boeing Company (responsible for manufacturing operations in the West; included Stearman Aircraft and Boeing Aircraft of Canada).

Disheartened by the breaking up of his company, William resigned his chairmanship of the corporation.

By the late 1940s, Boeing shifted from propeller-driven planes to jet engines.

This marked the advent of the 'jet age' and Boeing's shift to commercial aircraft...

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