INTERNATIONAL - Boeing Co seized on a lull in firm orders for passenger jets to sign more than $100 million in contracts for digital services for its newer but fast-growing global unit as the Paris Airshow enters a third day on Wednesday.
Boeing Global Services boss Stan Deal touted agreements with more than 10 global carriers ranging a multi-year deal with US-based Delta Air Lines for navigation services and a ten-year one with Hong Kong flag carrier Cathay Pacific Group for crew rostering.
The deals reflect a two-year-old push by the world’s largest planemaker into the higher-margin services business that includes aircraft parts and maintenance and analytics which Deal aims to grow to $50 billion in revenue in a decade from its 2018 revenue of around $17 billion.
Future aircraft like the 777X twin-jet and a potential new mid-sized aircraft known at Boeing as NMA are central to advancing the “challenging goal that we aspire to,” Deal said, referring to the $50 billion.
“The marquee part of it (777X) is to have the services better integrated in the airplane at the point of delivery,” Deal said.