Boeing, America’s biggest exporter, disclosed Monday that it will reorganize its business with the goal of tripling services revenues to $50 billion over the next ten years. It also revealed that the next head of its commercial-aircraft unit will come from GE Aviation, a company that generates most of its returns from aftermarket services. The moves signal the Boeing will seek to greatly increase its market share in aerospace services, a segment of the business that it has largely left to third-party providers in the past. This is the logical next step for a company that has accumulated a backlog of $462 billion in orders, but now faces the prospect to softening demand for its signature jetliners. I have written a commentary for Forbes here.
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