Subscribe Free
in Air Transport / Maintenance / Flight Services & Support / People

Dubai: Boeing Global Services aiming for "Good growth"

Posted 20 November 2019 · Add Comment

Boeing Global Services (BGS) is continuing to outpace the market as it pursues a target of achieving $50 billion in revenues by 2025, according to the division's new CEO, Ted Colbert, speaking at the Dubai Air Show yesterday

However, achieving that target - which Colbert described as aspirational - will not be done simply by chasing volume.

“Part of our goal is to have ‘good growth’, profitable growth. There are lots of opportunities that could allow us to have lots of revenue at low levels of profitability.”

Services - which covers myriad areas such as spares, MRO and training - is a relatively low-key sector but one that is rapidly growing in importance. Training, for example, is taking centre stage, given the huge numbers of new pilots that will be needed to fuel the growth in aviation - notably in Asia - over the next 20 years.

BGS estimates the Middle East market for services at $225 billion over the next decade. Its presence in the region include a parts depot in Dubai.

In past years, the airliner market was notoriously cyclical: is the services sector a more stable environment, promising a more consistent revenue stream? ”To a certain degree, it is,” said Colbert, 45, an industrial engineer by training who was previously Boeing’s chief information officer. “Obviously, sales has its own pattern. In our world, we can predict that pattern because we know our markets.”

One reason for Boeing’s decision to set up BGS was the fragmentation in the services market, but Colbert said that it would only bring services activities in-house “where it makes sense and creates value for our customers. Our goal isn’t to go out and just grab-bag everything. It’s about doing things that are smart and allowing them to serve the customer.”

Colbert believed that the biggest ‘sleeper’ area of growth could be digitisation - leveraging new opportunities that took advantage of data to help decision-making support: “To inform the operator, inform the mechanic, inform the planner.”
 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Arabian Adventures MICE wins SITE Crystal Award

For the second time in three years, Arabian Adventures Meetings, Incentives & Events (MICE) has won the prestigious SITE Crystal Award for Excellence in Incentive Travel, Africa and the Middle East.

Emirates wins two awards at 2019 ULTRAS

Emirates has picked up ‘Best Airline in the World’ and ‘Best First Class’ at the prestigious 2019 ULTRAs. Voted by the hundreds of thousands of readers of The Telegraph’s luxury travel magazines Ultratravel UK and Ultratravel Middle

Gulf air welcomes new Bahraini aircraft maintenance technicians

Gulf Air has welcomed a new batch of 22 Bahraini aircraft maintenance technicians who have recently joined the airline and began their training programme. With this recruitment Gulf Air has reached 90% Bahrainisation in the position of

AIME leaps into digital

Airlines are encouraged to take a quantum leap into digital and learn to think like the world’s largest innovators and disruptors in February.

New acting president and CEO for Alsalam Aerospace Industries

Alsalam Aerospace Industries has appointe Karl E. Jeppesen as Acting President and CEO, starting on 12 January, 2020.

Emirates to launch services to Penang via Singapore

Emirates plan to launch a new daily service from Dubai (DXB) to Penang International Airport, via Singapore , from 9 April 2020.

AVMENA20 SK1309100620
See us at
SaudiAirshow21BT2011180221AVMENA20 BT1309100620Sofex BT2611020420MRO_BT161219260220AVAFA20BT2607050320AIME BT0801260220FIL20BT140124720