Term Paper on "Military Spending on Boeing in Seattle From 1970-1994"

Term Paper 13 pages (3626 words) Sources: 1+

[EXCERPT] . . . .

Boeing Spending - 1974 to 1990

The purpose of this work is to research Boeing from the year of 1974 to the year of 1990 and identify the spending by Boeing for those years in terms of projects, expenditures on projects as well as the environment within the Aircraft production industry to those specific years and the shifts and transitions of the industry and how Boeing was affected or in turn effected the industry.

Beginning business July 15, 1916 under the name "B & W," Boeing was founded by Williams E. Boeing. "B & W" changed names first to that of "Pacific Aero" and then to "The Boeing Airplane Company." William Boeing was a Yale scholar and after he acquired his knowledge and learning about the design and assembly of airplanes he put his knowledge to use however due to the legislative changes in 1934 Boeing sold his market share. The Boeing Company continued on and the first flight of the Boeing "Clipper" took place in 1938. The "Clipper" was the large aircraft of it kind of the civilian type with a capacity of 90 passengers during daylight flights and 40 passenger capacities at night. The first regular run between the United States to Europe passenger service began in the year of 1939.

Producing a great number of Bombers by Boeing was done with the aid of many women who were factory workers in replacement of the men who were off at war and by March 1944 the production was revved up to 350 planes a month. Production took place at plants that were camouflaged with all manner of green bush and shrubbery to avoid enemy detection of the aircraft production.

When the war came to an end over 70,000 workers were said to have lost their jobs in the aircraft production business due to cancellations on bomber orders as well as a general drop in business across the board at the war's end. First used during the war, the C-97 helped Boeing of the post-war slump that all manufacturers of aircrafts wee affected by. The C-97 was used to evacuate casualties during the Korean War and the Kc-97 has a boom for use in aerial refueling with almost 900 of them being built by the year of 1958. The C-97 was to be the last propeller-driven plane built by Boeing. The field of rocket technology was entered by Boeing with the Ground-to-Air Pilot less Aircraft which was Boeings first missile. Cruising at speeds that were supersonic the GAPA reached altitude of 59,000 feet in November of 1949 and was the basis for the Bomarc missiles. The Bomarc missiles were the world's first long-range anti-aircraft missile and began mass production in 1957.

I. Boeing's Growth in the 1950's and 1960's:

Boeing accounted for approximately 9% of all U.S. exports in 1985. The air craft industry is comprised of 15,000 companies. Forbes Magazine reported in August of 1986 that Boeing was the only aircraft manufacturer that was making money building airlines. Stating that since the introduction of the 707 in 1958, the first successful commercial jetliner that Boeing had produced a succession of planes that had been profitable to Boeing as well as becoming industry standards. Boeing, it seems was having problems with the 7J7 which was a new propfan jet airliner. The airliner was revolutionary was that it was an "unducted fan engine" UDF. The UDF was said to burn two-third less fuel that the other short to mid-range airliner and one-third less that the latest turbofan-powered design airliner like the Airbus Industries A320. Fuel costs were reported to have been at the rate of 30% of operating costs. However, since the Saudis chose that moment to pump more crude oil and effectively drive down the prices on oil and prices went to aw low as 55 cents a gallon which was down $1.20 from fuel costs in 1983. Fuel prices were running at around 12% of the operating costs of the new Airbus A320.

The report sated that Boeing was already losing the market share to McDonald Douglas' MD-80 and DC-9 that sold for $43 million as well as Airbus Industries a-320. Boeing reportedly would have to spend between $4 billion and $5biolion on the new propfan as well as $1 billion from GE for the engine. The expected price-tag was stated to be around $70 million. Boeing stated in the report that "We are continuing to book airliner sales at a somewhat faster pace that I would have predicted at the beginning of the year." The competition was of an intense nature and margins were being squeezed at the time. In 1985 the revenues on commercial aircraft were at $8 billion with Boeing having an operating cost of $317 million, or 4.7%. Boeing's best prospects were reportedly with new programs but those were considered to be the most vulnerable due to the budgets that were imposed as well as delays and cancellations. One of those programs was the Advanced Tactical Fighter, ATF, which is a $45 billion dollar program.

Immediately after the war the most important program was the B-47 Stratojet bomber. This was America's first swept-wing multiengine bomber. This plane depended on the wind tunnel for its design and in fact, was the first which did. The wind-swept design was a concept that has been followed in the design of every large jet airplane since. The b-47 was followed by the B-52 Stratfortress which was the first long-range wind-swept heavy bomber; it was not only the first but probably was the most significant multiengine air craft that had been built to date. Originally conceived as a "straight-wing, propeller-driven bomber. However the Air Force informed Boeing in the year of 1948 to design a jet bomber instead. Realizing that Air Force might invite other competition for the project if they delayed the group and chief engineer Ed Wells and George Schairer locked themselves up in a hotel room and using only the notes with them and a slide rule designed a balsa model and proposal in the course of only a weekend and surprisingly the Air Force was in approval of the design and began production in 1951 with the first B-52A taking flight in August 1954. During the decade of the 1950's the B-52 broke numerous records of both distance and speed.

The cold war continued and the development of an intercontinental ballistic Missile System or ICBM with the development of the Minuteman ICBM started in 1958. The first test fire was on February 1, 1961 and it was operation by 1962. Minuteman missiles were operational by 1967 and installed as six various U.S. sites. The technology that was rocket-based was use in the design of the Dyna-Soar, a reusable space vehicle staffed with a crew. The project was cancelled with a loss of approximately 5000 jobs in 1963. The concept however, once again appeared in the Space Shuttle design. Boeing bought Vertol Aircraft. The visionaries of the day are said to have foreseen a day of airliners flying faster than the speed of sound transversing the Atlantic Ocean in only five hours. In the year of 1965 the first American SST (Supersonic Transport) was built. Competition abroad was stated to have the British and French in agreement to produce their own SST called Concorde. The know-how of the Soviet's in the KGB's version named the Tu-144 was named the first commercial SST to fly, the race was historically notable.

In 1964 $100 million was appropriated in the fiscal budget in developing the American SST. TWA and Pan AM came to the foreground with $2.1 million advance toward 21 SSTs. North American had a military SST, the Valkyrie however, Boeing beat out the Lockheed D-200- and the American NAC-60 Douglas creations. While surely noting the race between the British, French and Soviets, Boeing acted quickly and deliberately and were leading the 'super-sonic transport' race, they held the belief that delivery of the 'biggest', 'fastest', and 'most efficient' design that they would with a sleight of hand recapture the market share temporarily lost to the Europeans companies. Although the design never quiet worked properly. Boeings end resulted greatly resembled the Lockheed L-2000. Sonic Boom experiments on the part of the Air Force showed that the constant sonic booming was not appreciated demonstrated through the 5,000 claims filed for damages and the 8,000 complaints.

The SST is going to be built" declared President Richard M. Nixon on the 23rd day of September, 1969. Federal Funds to the tune of $500 million had already been devoted to the project at that point in time which was stated to be 'an unprecedented amount for a single non-military project.' Amid mounting pressure applied by Senator Proxmire and others toward cutting the spending of taxpayer money on that of a civilian project.

II. Boeing: The 1970's

In the early part of the decade of the 1970's a crisis of major proportions was faced by Boeing in terms of finance as well as in… READ MORE

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