CMO 2014 Presentation

8/9/2019 CMO 2014 Presentation

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Copyright © 2014 Boeing. All rights reserved.

The statements contained herein are based on good faith assumptions and are to be used for general i nformation purposes only. These statements do not constitute an offer, promise, warranty orguarantee of performance.

Boeing Commercial AirplanesJuly 2014

July 2014


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Twenty-year traffic andproduct forecast

All regions of the world

• 169 airlines / groups

• 63 traffic flows

All jets 30 seats and above

• No turbo props

• No business jets

Freighters

Scheduled andnonscheduled flying


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Productstrategy

Long-rangebusiness plan

Suppliers andairline customers


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Accurate

Conservative

Under-forecastedsingle-aisles

Over-forecasted largeand regional jets

Fleet consists of all jet aircraft with at least 90 seats

SOURCES: CMO 1994, CMO 2004, ASCEND

0

2,000

4,000

6,000

8,000

10,000

2004-2013

0

4,000

8,000

12,000

16,000

20,000

1994-2013

Medium-term

Long-term

2004 CMOForecast

1994 CMOForecast

Actual

Actual


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What’s trending in aviation? 20-year traffic and airplane forecastProduct strategy & development

Agenda


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Strong, resilient,growing marketexpected to continue

What’s trending in aviation?

Passengers flyingwhere they wantwhen they want

Single-aisle is fastestgrowing, mostdynamic segment


7/33Copyright © 2014 Boeing. All rights reserved.

4,000 new markets Low cost carrier willcontinue fast growth

Versatility drivesgrowth



>75% of recent deliveriesand orders in medium-sizespace

• Versatile and flexible for

expansion and frequency

• Efficient across marketspectrum with lower risk

Market focus will remain inthis size space (737 MAX 8)

Single-aisle backlog and forecast

79%76% 70-75%

2010-2013deliveries

Order backlogsince 2010

Futuredemand

Small S-A

Large S-A



160

150

170

seats

Average number of seats last 15 years

SOURCE: Ascend, single-aisle airplanes excluding regional jets and prop aircraft, all stage lengths

737 MAX 8

2000 2002 2004 2006 2008 2010 2012 2014

2,000-3,000 nmi

FlexibilityMore markets

More frequencyPassengerpreference

EfficiencyUnit cost

Fuel per seatLCC growth



20-year traffic and airplane forecast



reca

Fuelprice

Airlinestrategies &

businessmodels

InfrastructureEconomic

growth

Highspeed

railEnvironmentAirplanecapabilities

Marketliberalization

Emergingmarkets

CurrentMarketOutlook

2014-2033



0.0

1.0

2.0

3.0

4.0

5.0

6.0

1 9 8 0

1 9 8 1

1 9 8 2

1 9 8 3

1 9 8 4

1 9 8 5

1 9 8 6

1 9 8 7

1 9 8 8

1 9 8 9

1 9 9 0

1 9 9 1

1 9 9 2

1 9 9 3

1 9 9 4

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

Resilient, growing market expected to continueRPKs (trillions)

RPKs = Revenue Passenger KilometersSOURCE: ICAO scheduled traffic

4 recessions

2 financial crises

2 Gulf wars

1 oil shock

1 near pandemic (SARS)

9/11



TradeGDP level

GDP per capitaLabor force

Network structure

InfrastructureBusiness modelType of service

Regulatory environmentDemand

Macroeconomics

Value of service


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2013 to 2033

3.2%World

economy(GDP)

5.0% Airline

traffic(RPK)

4.7%Cargotraffic(RTK)

Numberof airline

passengers4.2%


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0.5

1.0

1.5

2.0

2.5

World

SOURCE: August OAG

Index 1993=1.00

FrequencyGrowth

NonstopMarkets

AverageAirplaneSize

Air TravelGrowth

8 D li i k d


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787 Dreamliner opening new markets aroundthe world As of June 30, 2014

Delhi

Birmingham

Melbourne

Sydney

Tokyo

San Jose

San Diego

Boston

Addis Ababa

Washington

Houston

Lagos

Denver

Stockholm

New York

Bangkok

Oslo Helsinki

San Francisco

Chengdu

London

Austin

Copenhagen

Los AngelesOakland

Orlando

Current new nonstop routes flown with the 787:

Fort Lauderdale

Announced

In operation

Delhi-Birmingham (AI) Houston-Lagos (UA) Tokyo-San Jose (NH) Stockholm-Fort Lauderdale (DY)

Delhi-Melbourne (AI) Tokyo-San Diego (JL) Addis Ababa-Dulles (ET) Stockholm-Bangkok (DY)

Delhi-Sydney (AI) Tokyo-Boston (JL) Oslo-Bangkok (DY) Oslo-New York (DY)

Denver-Tokyo (UA) Tokyo-Helsinki (JL) Stockholm-New York (DY) Oslo-Fort Lauderdale (DY)

London-Austin (BA)

787Operators:


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They’ve been telling it for 15 years and still… nothing

SOURCE: Airbus Annual Press Conference, 13 January 2014


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Capacity Frequency Cities served Seats per flight

2000 2014

Top 25 long-haul airports

SOURCE: Industry schedules

+58% +60%

-2%

+46%

304299


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Airplane deliveries: 36,7702014 - 2033

Market value: $5.2T2014 - 2033

0

5,000

10,000

15,000

20,000

25,000

30,000

Regional jets7%

Single-aisle70%

Smallwide-body

12%

Largewide-body

2%

Mediumwide-body

9%

0

500

1,000

1,500

2,000

2,500

3,000

Regional jets2%

Single-aisle49%

Smallwide-body

22%

Largewide-body

5%

Mediumwide-body

22%

2,490

25,680

4,520

6203,460

$100B

$2,560B

$1,140B

$240B

$1,160B


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Units

36,770

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2013 2033

5,410Retained fleet

15,500Replacement

42%

21,270Growth

58%

42,180

20,910


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Africa

Annual GDP growth, 2013 – 2033

SOURCE: IHS Economics

1.9

4.4

4.7

1.5

2.5

2.7

3.2

3.3

3.8

3.9

4.7

Northeast Asia

Southeast Asia

AsiaPacific

Europe

North America

Oceania

World

CIS

Latin America

MiddleEast

South

AsiaChina 6.2

6.5


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0 500 1,000 1,500 2,000 2,500 3,000

Within Asia Pacific*

Within China

Within North America

Within Europe

Middle East - Asia Pacific

Europe - Asia Pacific

North Atlantic

Within Latin America

Trans-Pacific

Within/to CIS

North America - Latin America

Europe - Latin America

Africa - Europe

RPKs, billions

*Does NOT include travel within China

WorldAverageGrowth:5.0%

3.5%

7.4%

6.9%

4.3%

4.5%4.7%

4.9%

4.9%

5.3%

3.1%

2.3%

6.6%

6.3%2013 traffic

Added traffic2014-2033

Annualgrowth %


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39%

17%

12%

7%

3%

3%

20%

New airplane deliveries by region2014 –2033

Market value by region2014 –2033

37%

21%

8%

8%

3%

3%

20%

36,770 $5.2T

Region $B

Asia Pacific 2,020

Europe 1,040

North America 870

Middle East 640

Latin America 340

C.I.S. 150

Africa 140

World Total $5,200B

Region Airplanes

Asia Pacific 13,460

Europe 7,450

North America 7,550

Middle East 2,950

Latin America 2,950

C.I.S. 1,330

Africa 1,080

World Total 36,770


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RTKs = Revenue Tonne Kilometers

0

50

100

150

200

250

1980 1984 1988 1992 1996 2000 2004 2008 2012

R T K s ( b i l l i o

n s )


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2014 to 2033Freighters

Delivery units

2013Freighters

1,690

2033Freighters

2,730

Share of fleet

2,170

0%

20%

40%

60%

80%

100%

960

590

370

250

Large production >80 tonnes

Wide-body conversions40-120 tonnes

Medium wide-body production 40-80 tonnes

Standard-body conversions


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0

100

200

300400

500

600

700

New freighter deliveries: 8402014 –2033

A i r p l a n e

u n i t s

Market value: $240 billion2014 –2033

M a r k e t v a l u e

Medium40-80 tonnes

30%

Medium 40-80 tonnes

21%

$50B

Standard80 tonnes

79%

$190B

Standard80 tonnes

70%

0

50

100

150

200

250

250

590

$0B0


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Product strategy & development


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More value to our customers in all markets Efficiency designed-in from the start

Environmental performance

Long-range, fast, reliable

Operational commonality

Passenger experience

Low operating cost

Standardization


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256

295

319

0

50

100

150

200

250

300

350

2010 2011 2012 2013 1Q14

Backlog ($B)

Model

Region

Single-Aisle

46%

Twin-Aisle

52%

747

737

767

787

777 Large2%

374

L.America& Africa

AsiaPacific

Leasing,Gov't &BBJ

NorthAmerica

ME,

Central&S. Asia

China,East &SE Asia

Europe&

Russia

374


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Superior value, efficient market coverage

737-900ER

200

150

100

500

450

400

350

300

250

S e a t s

200

150

100

500

450

400

350

300

250

S e a t s

737-700

737-800

747-8

787-9

777-200ER

777-300ER

787-8

767-300ER

737 MAX 9

737 MAX 8

737 MAX 7

787-9

747-8

787-8

787-10

Current Boeing Future Boeing

777-8X

777-9X


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Superior value, efficient market coverage

A321neo

A320neo

A319neo

A380

A330-300

A350-900

A350-1000

A330-200 A350-800

200

150

100

500

450

400

350

300

250

550

600

S e a t s

200

150

100

500

450

400

350

300

250

550

600

S e a t s

Airbus Future Boeing

747-8

777-9X

777-8X

787-10

787-9

787-8

737 MAX 9

737 MAX 8

737 MAX 7


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Strong, growing market being driven by customers flying where they want,

when they wantSingle-aisle -- fastest growing and most dynamic segment -- fueling forecast

With the most comprehensive widebody lineup in the industry, Boeing will beable to meet customers’ needs now and in the future

Things to remember


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Documents

CMO 2014 Presentation