On the Record with
BOB JOHNSON, PRESIDENT AND CEO HONEYWELL AEROSPACE

It's 'New' Honeywell's First NBAA Gala

Johnson came from the Allied side to run Honeywell.

Here at New Orleans Honeywell Aerospace will be bringing the freshly-merged combined-forces of Honeywell and AlliedSignal to an NBAA Convention for the first time. In Bob Johnson's eyes the integrated, high-tech Honeywell Aerospace exhibit is a metaphor for what the company has become-and one where it is easy for all to see the value and significance of Honeywell's expanding products and services range.

"With our merger behind us," he says, "we are excited about the obvious potential of this combined company. We are developing the new products, systems and solutions that the industry not alone is ready for-but firmly expects."

As the former president and CEO of AlliedSignal Aerospace, Johnson is uniquely placed to judge the success of the Honeywell Aerospace merger. "Over the last five or six years both Honeywell and AlliedSignal matured as companies, and deserved to be described as 'most admired aerospace companies'. In the time before we went for our regulatory approval we studied 75 similar relevant mergers and, of those, we found that 76% didn't meet up to expectations. From this we were able to draw some pretty firm conclusions.

"You should never try and fit one company into another. Instead merge the best practices from each and make a new company. Get it done as quickly as possible-we completed our process in 45 days-and don't let concerns about when it's all going to finally happen get in the way. Get all your best people involved and look for a lot of input from your customers and your employees. Then keep your focus firmly on your customers."

Returning to NBAA and his thoughts on the business aviation market, Johnson is positive. "Our business aircraft market activity is at record levels, and in our market outlook which we'll be presenting here at NBAA you'll see we predict that strong growth carrying on until 2011-which is as far as we could go. The industry is looking for partners and we have so many technical strengths to draw on to offer them new products and services. In addition, our service business is experiencing outstanding growth, which is driven by a growing market I know, but also by people looking to outsource work-the kind of work that we can do for them."

Expertise in stem-to-stern aircraft systems is even greater now that Honeywell and AlliedSignal have become one company.

It is in the field of data transfer and real-time, online communications that Johnson reckons Honeywell has perhaps the most to offer-and this competency feeds directly into the company's own E-commerce activities. "Our aviation information services unit is moving ahead on two fronts-passenger entertainment and the 'office in the sky' concept. I believe that e-mail access will soon become the number one required cabin service, and of the utmost importance to business customers. We have been concentrating on the airlines up to now, but we have the first FAA-certified system, it's been approved for the Citation III and we will be announcing a launch customer for the system, and adding new platforms.

"Our One View satellite TV system offers direct-broadcast TV for corporate aircraft and we are able to offer high-speed broad-band data and communications transfer, using today's satellite technology. The One Link system currently has 300 customers and we are signing new ones up at the rate of 12 per month. One Link allows business travelers to send and receive calls and faxes through our own service center.

"Our skill in data handling and the ability to turn aircraft into communications centers is very relevant to our own e-business initiatives. This kind of thing is going to have a big, big impact. Together with I-2 and United Technologies we have established MyAircraft.com to serve all market segments and to improve our speed of business. We have already developed what we call our E-Engine which supports engine and maintenance operations. It's an action-based, customer specific system that tells you what work needs to be done. E-Engine is capable of integrating with several TFE731 data systems. It can be customized to specific fleets, but not just to Honeywell owners or operators.

"At NBAA were will be specifically demonstrating 'new' Honeywell's ability to learn and apply continuous improvements. To deliver what our customers need, when they need it. Our products can be found on pretty much every aircraft in the world, but we are here to underline that we have moved beyond just putting things on aircraft."