Boeing creates one-stop shop for jets and services in Airbus battle

PARIS: Boeing has reorganised its sales operations as part of a push into services that has helped it take a lead over rival jet maker Airbus this year.

Boeing set up a standalone division in 2017 to build a US$50 billion business in services for civil and defence aircraft.

These can include repairs, crew rostering, parts and even wind forecasts. It previously offered fewer, more dispersed services.

Now sales of jetliner services have been brought under the same umbrella as plane sales, headed by senior vice president Ihssane Mounir, Boeing Co’s overall commercial sales chief.

The previously unreported move, which started late last year, is designed to increase the number of deals and boost profits as it will make it easier for Boeing to sell high-margin services at the same time as it sells planes.

The change comes as airlines try to keep a lid on costs by planning jet purchases and long-term operations together.

“We approach the campaigns in a much more comprehensive way than we have ever done before,” said Mounir, whose role was expanded to include responsibility for jetliner-related services across the group.

“So the price and inherent capability of the airplane are just one thing that we are bringing to the table. I’m not going to go beyond that, or I will be divulging the secret sauce.”

Airbus and Boeing dominate the jet market, worth US$5 trillion over 20 years.

Airbus is also developing services but has not brought sales together yet – though it may do so in future.

Boeing officials say recent sales wins for Boeing’s 787 plane over Airbus’ A330neo have involved ‘multiple plays’ of which coupling jets and services can be one element.

Mounir’s 600-strong sales team has won orders for 376 planes, or 70 per cent of new commercial jet orders this year. Airbus has the rest of the main market with 161 planes.

Analysts say success for the 787 and a potential new mid-market Boeing jet depends in part on clipping the wings of the latest version of Airbus’ older competitor, the A330.

European industry sources say Boeing slashed 787 prices to “kill” the A330.

Mounir, 46, who was promoted to one of the industry’s most daunting jobs in October 2016, denied this.

“It has not been a price game (or) a price strategy,” Mounir said when asked about the claim, adding multiple factors including improved reliability had boosted the 787. — Reuters