ST. LOUIS, Feb. 11, 2015 – Boeing [NYSE:BA] is consolidating management of key defense and space development programs into a new organization to enhance its performance on the pre-production development activities that significantly influence its ability to provide customers with the right capabilities at the right time and cost.
“This BDS Development organization is the next step in breaking the cost curve on our programs,” said BDS President and CEO Chris Chadwick. “We expect our customers to see step-function improvements in affordability and schedule performance as we more effectively apply engineering expertise, development program best practices, and program management and integration from across Boeing to our most important development activities.”
BDS Development is patterned on the Airplane Development organization in Boeing Commercial Airplanes. Those groups demonstrate the company’s best-of-Boeing approach to reducing risk and improving the affordability of key development activities.
Six programs now managed elsewhere in BDS will be the first ones overseen by BDS Development:
- U.S. Air Force KC-46 aerial refueling tanker.
- The Air Force’s presidential aircraft.
- CST-100 spacecraft for NASA’s Commercial Crew program.
- NASA’s Space Launch System rocket, which will take humans beyond Earth orbit.
- Boeing’s 502 small satellite effort.
- BDS work on Boeing’s 777X commercial airplane.
Jim O’Neill, formerly president of the BDS Global Services & Support unit, will lead BDS Development while Leanne Caret, the BDS chief financial officer, will succeed O’Neill as president of GS&S.
“Jim’s experience across development, production, and support activities will position us to exceed the expectations of our customers and stakeholders, while Leanne’s financial insights, and experience leading a variety of programs, makes her ideal to take us to the next level in terms of providing customers with robust, affordable support,” Chadwick said.
Jim Zrust, Boeing’s corporate vice president of Tax, has been named BDS CFO. Zrust will report to Chadwick and Boeing Chief Financial Officer Greg Smith.
“Jim is a proven leader who brings nearly 35 years of business experience and who will help continue to strengthen BDS and position that unit for profitable growth,” Smith said. The leadership changes are effective immediately.
A unit of The Boeing Company, Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Defense, Space & Security is a $31 billion business with 53,000 employees worldwide. Follow us on Twitter: @BoeingDefense.
# # #
Forward-Looking Information Is Subject to Risk and Uncertainty
Certain statements in this release may be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “should,” “forecasts,” “projects,” “plans,” “believes,” “estimates,” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future plans and business prospects, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual events to differ materially from these forward-looking statements, including economic conditions in the United States and globally, general industry conditions as they may impact us or our customers, and other important factors disclosed previously and from time to time in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update or revise any such statement, except as required by law.