Boeing Business Jets Announces Two New Orders

On the heels of this week's announcement that golf superstar Greg Norman and 14 additional customers have placed orders for the new Boeing Business Jet, the organization's president, Borge Boeskov, today announced the signing of two new orders. The announcement was made during a news conference at the Paris Air Show.

The two new orders plus those announced earlier this week, bring the total announced orders for Boeing Business Jets to 20. As is typical in almost all private business transactions, the customers -- with the exception of Norman and launch-customer General Electric, Co., (GE) -- have asked to remain anonymous.

"We're extremely pleased to announce all of these new orders," Boeskov said. "It shows the kind of momentum that is building for this airplane program. Everywhere we go, people are excited about the new dimensions in business travel that the Boeing Business Jet provides. Customers are demanding range, payload capacity, versatility and comfort and we are offering a new level of product and service that meets those needs at a price comparable to existing long-range corporate jets."

The business jet is a high-performance derivative of the Boeing Next-Generation 737-700. It combines the size of the 737-700 fuselage (110 feet 4 inches, 33.6 meters) with strengthened wings and landing gear from the larger and heavier 737-800. This tailored combination provides owners with a business jet platform that has a range of 7,140 statute miles (6,200 nautical miles, 11,480 kilometers) and payload flexibility beyond that of any competitor.

The airplane will cruise at speeds up to .82 Mach, equivalent to a ground speed of 550 miles per hour, and will be able to serve such routes as New York to Tokyo and London to Johannesburg. It will be powered by the same CFM56-7 engines used on the Next-Generation 737 commercial airplanes. The engines are produced by CFM International, a 50/50 joint company of GE and Snecma of France.

With an 807-square-foot passenger cabin, the Boeing Business Jet has nearly three times as much space as the largest existing executive jets. The interior can accommodate a variety of configurations with space for conference rooms, executive offices and individual work areas that exactly match a customer's personal work and travel preferences.

The spacious interior provides room for new features typically not found in other corporate jets. These features can include a private crew rest area or emergency medical facility, an advanced satellite communications center, an exercise suite with in-flight shower, a remote press center, or a disaster relief center.

Boeing Business Jets is a joint venture launched on month 2, 1996, by The Boeing Company and GE, to respond to market demand for a larger, more capable business airplane that can fly more than 6,000 nautical miles. It was established as a marketing arrangement in the form of a contract joint venture.

Boeing manages day-to-day operations, manufactures the airplane, and is responsible for sales and marketing activities with support from General Electric. The airplane's engines will be manufactured by GE, and both companies are involved in customer support and in making decisions affecting the product's pricing and market applications. The two companies share in the cost and revenue.

Boeing Commercial Airplane Group will provide airplanes to Boeing Business Jets, which then will deliver them to a customer-selected completion center for interior installation and paint.

The business jet is comparably priced to existing long-range corporate jets. The price for an unfurnished, or "green," airplane is $30.5 million (1995$). That price will rise to $32 million on month 1, 1997, when the Flight Dynamics Heads-Up Guidance System (HGS ) and a second HF radio are included as standard equipment. A completely furnished and equipped business jet will cost approximately $40 million for delivery in late 1999.

The first Boeing Business Jet is scheduled to roll out of the Renton factory in June 1998. GE will take delivery of the first Boeing Business Jet in the Fall of 1998.