On the Record with LEE MONSON, PRESIDENT, BOEING BUSINESS
JETS
The top-of-the-line, long-range business jet segment has been
hit particularly hard by the worldwide recession. With that in
mind, it is somewhat of an accomplishment that Boeing Business
Jets has at least been able to sell the six "white tail"
BBJs it had sitting around earlier this year.
"They were built without orders, and we got caught,"
said Boeing Business Jets president Lee Monson, who added that
the six BBJs were built in 2002. Boeing didn't make the same mistake
in 2003, and did not build any white tail BBJs. Three of the six
sold were originally built for the its partnership with NetJets,
and were completed with interiors.
NetJets has orders for nine BBJs, with options for 16. Five have
been delivered. "As with any business, there is lots of evaluation,"
said Monson. "They are looking to see where the marketplace
will go. There has been a slowdown in the big end of the market
for fractionals, and we are in constant discussion to make sure
we have the right business model to make (the partnership) successful."
Monson said there will be a BBJ on static display in Orlando,
and the organization will discuss revived plans to lower the cabin
altitude from 8,000 feet to a more comfortable 6,500 feet. First
quarter 2004 is the planned certification date for the modification.
Enhanced vision is presently not available with the BBJ, but is
something now being considered.
Said Monson: "We have not finalized on the best approach
to EVS, but recognize it will be available (on the market) and
will be expected by our customers." Products from three or
four EVS manufacturers are now being evaluated, and Monson said
Boeing Business Jets will take advantage of Boeing Commercial's
expertise to help it select an EVS vendor.
The BBJ organization is also exploring the potential market for
the business jet in China, and conducted a demo flight in late
September for an unnamed government entity, according to Monson.
The impetus is China's stated intention to relax restrictions
on its air force-controlled airspace for business and general
aviation. "That is a huge step for all of us in the corporate
world," said Monson, who described the Chinese business aviation
market as being in its infancy with only a handful of small business
jets in the entire country. "It expands the potential for
all of business aviation in that part of the world."
There are 61 BBJs and six BBJ2s in service worldwide. Roughly
38% of the customer base is in North America, with approximately
27% in the Middle East, 19% in Europe, 11% in the Asia-Pacific
region, 4% in Africa and 1% in Latin America.
Some 15% of BBJ customers are from the corporate/business segment,
39% are private individuals or entrepreneurs, 32 % are heads of
state or government VIPs, and 14% are in charter or fractional
ownership programs.
