It is an undeniable fact that Boeing researchers design the latest commercial jets, exclusive military aircraft, modish weaponry, and strategic defense and intelligence systems. However, Boeing being one of the world’s giant aerospace rulers does not only propose and deliver only these services. The company collaboratively works in four versatile domains named Boeing Commercial Airplanes (BCA), Boeing Defense, Space & Security (BDS), Boeing Global Services, and Boeing Capital. This article will focus on how these four divisions work parallel with each other to generate revenue for Boeing.
Boeing Commercial Airplanes
Boeing Commercial Airplanes (BCA), researches, designs, and releases updated commercial airplanes into the industry. These made on-demand jets are hand on hand taken by the airline industry around the globe. These aircraft include both the passenger and freight carriers which fulfill the varying requirements of their caretakers. Alongside, it carries the responsibility of providing fleet support service to global airliners. It is the same division of Boeing which introduced the B737 MAX that was grounded due to two consecutive fatal crashes. The grounding of a well-desired aircraft had not proved beneficial for the overall company’s revenue stream. However, now both FAA and EASA have granted approval to rejoin the skies upon getting a modification. Therefore, this division will resume manufacturing B737 MAX that will support the declining revenue to reach its peak. In the fiscal year 2020, this division of Boeing Commercial Airplanes made 28% of the total revenue of Boeing.
READ MORE: Boeing Commercial Products
Boeing Defense, Space and Security
This division of Boeing deals with the manufacturing of military aircraft and weaponry for different defense purposes like strike, surveillance, and mobility. It also plays its role in developing strategic defensive and intelligence equipment alongside manufacturing spacecraft and satellites. The most potential buyer of this division is the U.S Government i.e. U.S Department of Defense. It is evident from the fact that during FY 2020, this department shared 83% of the total revenue of this domain. Since the pandemic hit hard commercial aircraft manufacturing during the last year, hence this division counted for 45% of the total revenue of the Boeing Company.
Boeing Global Services
This division of Boeing provides extensive services and solutions to its commercial and military customers worldwide. These services include a wide range of tangible and intangible products and systems. Supply chain and logistics management, maintenance and modification, engineering, up-gradation and conversions, spare parts, pilots and maintenance training systems and services, data analytics, and digital services are the major products of this division. According to FY2020, this division contributed by 27% in generating overall revenue for the company.
READ MORE: History of Boeing Commercial Aircraft
Boeing Capital
Boeing Capital ensures the provision of financial funds to its customers to purchase and own their preserved orders. In addition to it, this division works for analyzing and stabilizing the company’s overall financial position. The portfolio of this division is composed of sales-type, finance leases, operating leases, re-leases of assets, notes, other receivables, and other domains of investment. This division has earned a revenue of 7% through the operating earnings during FY2020.
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