Boeing

Fueled by strong market interest and customer commitments, The Boeing Company (NYSE: BA) and General Electric (NYSE: GE) today launched two new longer-range models of the successful 777 commercial airplane. The announcement was made in a joint news conference by Boeing Chairman and CEO Phil Condit, and General Electric Chairman and CEO Jack Welch. The announcement followed a decision yesterday by the Boeing board of directors to authorize full production go-ahead of the newest members of the 777 airplane family.

This announcement moves the longer-range Boeing 777-200 and -300 airplanes into production, with first deliveries beginning in September 2003. Both airplanes will be powered by higher-thrust derivatives of the GE90 engine, which has accumulated more than one million flight hours since entering service in November 1995.

"Working together, the airlines, Boeing and GE are creating two great new airplanes," said Phil Condit, Boeing chairman and chief executive officer. "The superior value of the growing 777 family continues to differentiate it from the competition."

GE Aircraft Engines has been working for two years to develop its low-risk, growth-derivative GE90-115B engines which will power the new 777s.

"This is the perfect technological match of engine and aircraft that will change the way we fly," Welch said. "Together, the Boeing 777 airplanes and the GE 90 engine will provide unsurpassed passenger comfort and superior reliability and performance well into the 21st century."

The new 777s will address much of the market demand for airlines to offer more point-to-point services, opening up new routes. This phenomenon, called fragmentation, is increasing rapidly, especially over the Pacific.

The longer-range 777-200 will be the world's longest-range commercial airplane, capable of flying more than 10,100 miles, for example from New York to Kuala Lumpur. The longer-range 777-300 serves as the ideal replacement for early 747s, providing comparable capacity but efficient, twin-engine economics on such routes as Paris to Los Angeles.

The new airplanes are a planned extension of the 777 family , building on the features and capabilities that have made the three existing Boeing 777s the market-leading airplanes in the "intermediate, twin-aisle" category. The new 777 models will continue to offer the leading speed capability and lowest overall noise and emissions in their market category. They also include the same interior features that have made the 777 preferred by three out of four passengers who have flown both 777s and competing Airbus A330/340s. New innovations include overhead space options for crew rest areas and other storage requirements.

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