n FEATURE STORY Bigger than its size October 2007 BOEING FRONTIERS

Transcription

1 Bigger than its size 28 October 2007 BOEING FRONTIERS

2 The Netherlands may be geographically minuskuul, but this innovative, environmentally conscious country has gigantisch importance to Boeing The Netherlands iconic windmills and tulips are just two examples of how the country has managed its environment for centuries. While flood control remains a major concern, the population is also calling for reductions in carbon-dioxide emissions and noise. ISTOCKPHOTO.COM IMAGE By Maribeth Bruno The golden age of the low-lying part of Europe now known as the Netherlands arrived in the 17th century. While fighting wars and signing treaties with their bigger neighbors, the Dutch used their logistical genius to build a trading empire that stretched from Asia to the Americas. Meanwhile, engineers innovated increasingly ambitious methods to save fields from flooding and to claim dry land from the sea. In the 21st century, the Netherlands internationalism, innovation and position at the forefront of environmental issues have proved to be as resilient as the Dutch themselves. These traits now strengthen the relationships between Boeing s commercial, defense and research divisions and the company s Dutch customers and supplier partners with tangible benefits for all. Royal heritage The earliest sale to the Netherlands in the company s history was probably the DC-2. In October years after starting operations KLM Royal Dutch Airlines entered one of its DC-2s in a race from London to Melbourne, Australia. The DC-2 s second-place finish behind a racing airplane while making all its scheduled stops increased its popularity around the world. KLM remains a valuable customer and partner for Boeing today. It operates MD-11s; Classic and Next-Generation 737s; and 747s in all-passenger, Combi and Freighter configurations, and has phased out its 767s with the addition of ERs. In 2004, KLM merged with Air France to form AIR FRANCE-KLM Group. The group in June made its first joint announcement for new airplane orders nine ERs and seven s. KLM is a long-term customer that, while it naturally has an affinity with European companies, also has strong ties to U.S. industry, said Tom VanderHoeven, Boeing Commercial Airplanes director, European Sales. KLM runs a subsidiary airline called KLM Cityhopper and the Dutch unit of low-cost, all-737 operator transavia.com. It also owns 50 percent of the shares of European carrier Martinair. The airline s home base is Amsterdam Airport Schiphol, where in the first half of 2007, 42 percent of the 22.4 million passengers served were between flights. Transit traffic has lower yields [airfare divided by revenue passenger miles], so to succeed you need to keep costs down and offer more connections at higher frequencies, said Jan Witsenboer, KLM senior vice president of Corporate Procurement and Fleet Development. Expanding and updating its fleet with airplanes that are fuelefficient and can fly long distances is part of KLM s response to this challenge. For instance, it has increased its service to Los Angeles and Toronto and launched nonstop service to Lima, Peru, with its new 777s. Boeing builds good aircraft that match our requirements, said Witsenboer. These requirements increasingly involve environmental concerns chiefly fuel consumption, carbon dioxide emissions and noise. By spring 2008, all of KLM s Next-Generation 737s will have Blended Winglets, which enhance performance and reduce carbon dioxide emissions. The airline also partners with Boeing, Schiphol and air traffic control authority LVNL on ways to reduce environmental impact through advanced air traffic management (see story on Page 33). One of Boeing s environmentally progressive solutions is the 787 Dreamliner. Asked if he was considering the 787, Witsenboer replied, Yes who s not? He noted that KLM regularly flies BOEING FRONTIERS October

3 747 Combi aircraft 280 seats, with seven pallets in the rear to reduce unit costs. Using a 230-seat on the same route, he said, it becomes the front of a Combi, flying the same distance but with better seat-mile costs and the ability to economically open new routes in Asia. The Netherlands is one of the most densely populated areas in the world, with an expanding need for air transport and for signs of environmental innovation and improvement, said VanderHoeven. If we can work together to find solutions, those products could then be accepted in other areas of the world that will soon be in the same situation. Advanced ally Dutch foreign policy focuses on the European Union, the United Nations and NATO. Therefore, the Netherlands recognizes its responsibility for peacekeeping missions, and is willing to take the lead in coalition with other countries, said Robert van Dijk, Boeing Integrated Defense Systems director of Business Development, Benelux (Belgium, Netherlands, Luxembourg). While the size of the Dutch force a little more than 50,000 Boeing products in use by the Dutch armed forces include the AH-64D Apache attack and reconnaissance helicopter (top) and CH-47D Chinook transport helicopter. The Netherlands earlier this year became the first non-u.s. customer for the new CH-47F with an order for six of the aircraft. NETHERLANDS MINISTRY OF DEFENCE PHOTO military personnel restricts deployments to a modest number, it is lean and mean, said van Dijk. A few years ago, they reorganized and reduced their numbers in order to be able to invest in high-quality, flexible, and fully deployable forces and equipment. And Boeing was and still is part of that. Boeing products procured by the Netherlands Ministry of Defence include 29 AH-64D Apache attack and reconnaissance helicopters (for which it was the first non-u.s. customer); 11 CH-47D Chinook transport helicopters; two KDC-10 tanker/transport aircraft; one DC-10 passenger/freight aircraft; the RGM-84D Harpoon missile; the Joint Helmet Mounted Cueing System for F-16 pilots; and Joint Direct Attack Munition Precision Guidance Kits. The country is also part of a group of nations supporting the NATO Airborne Warning and Control System program. In February, the ministry s Defence Materiel Organization and Boeing signed a direct commercial sales agreement for six newbuild CH-47F (NL) Chinooks to be delivered in the first sale of that model outside the United States. The Dutch use their Chinooks not just to fly from A to B, but also for special forces deployment, said van Dijk. So they operate a special configuration that s more extensively equipped and weather-independent. The Netherlands has some 2,000 troops deployed overseas, of which 1,600 are stationed in Afghanistan as part of the NATO-led International Security Assistance Force. We have a very modern glass cockpit that some countries are jealous of, said Lt. Col. Bart Hoitink, commander of Royal Netherlands Air Force Squadron 298, which has three D-series Chinooks in Afghanistan, supported by 30 troops. With it, we can foresee parts of the flight and the Chinook will tell us if we can do the mission. We also have capabilities that came from the Apache for protection against missiles and radar. All that will be brought forward into the CH-47Fs, Hoitink continued, plus we re focused on adding growth potential, expansion capabilities. Defence is a proactive customer, and they pick what they need, said van Dijk. In negotiations such as the NATO plan to purchase C-17A airlifters, they can have a lot of influence with other countries. Partnering with KLM Partnerships are a large and successful element of the Boeing- KLM relationship. Their joint Spares Distribution Center near Schiphol can meet requests for 35,000 types of parts in stock, usually in less than 24 hours. The same facility houses the Next-Generation 737 Component Services Program, which the two companies announced in April Boeing and Air France formed a CSP for the 777 in Paris in late Airlines in either of the programs gain access to a pool of high-value parts, reducing their inventory and repair costs by up to 30 percent. Boeing manages the repair of Boeing-proprietary parts, and KLM and Air France handle the rest. One of our early Lean initiatives was to bring all our inventory and people together, said Paul Morgen, Boeing Commercial Aviation Services director of Component Services. Each of us has an equal value of inventory shared into the program, and both Boeing and KLM people work at the same facility to improve communication and share best practices. The 737 and 777 CSPs remain mostly separate despite the Air France KLM merger, but one synergy is that when we plan a sales campaign, CAS Sales gets together with both KLM and 30 October 2007 BOEING FRONTIERS

4 KLM operates several Boeing jetliner models, including the 777 (below, at Amsterdam Airport Schiphol). The airline was the launch customer for the Boeing and the Electronic Flight Bag, and the European launch customer for the CAPITAL PHOTOS FOR KLM Air France Sales and we develop an approach together, said Morgen. Whoever we all decide has the best relationship with the customer takes the lead. Building business relationships Boeing s defense contracts also provide work for Dutch industry, due to military offset requirements that say 100 percent of a contract s value must be reflected in in-country projects. More than 80 Dutch organizations are at work on both military and commercial projects to satisfy the requirement in a way that benefits everyone. The Dutch Ministry of Economic Affairs goal is to grow technology, working with small and medium enterprise, and grow their aerospace industries, said Ligia McLean, IDS Industrial Participation manager for the Netherlands and Belgium. The Dutch are very skilled in advanced composites, machining of hard metals, precision machining, and advanced electronics. Plus, they are able to remain cost-competitive despite the [monetary] exchange rate. Success stories include Dutch Aero s one-piece instrument panel for the Apache, Tedopres conversion of helicopter Integrated Electronic Technical Manuals into an automated Japanese format, and Dutch Thermoplastic Composites and Kok & Van Engelen s manufacture of reinforced thermolaminate composites for both IDS and Commercial Airplanes. Small business To70 Air Traffic Management worked with Boeing subsidiary Jeppesen to provide studies of integrated simulation, decision support and scheduling solutions for airports. The Netherlands at a glance Location: Western Europe, bordering the North Sea, between Belgium and Germany Area: 16,033 square miles (41,525 square kilometers), about double the size of the U.S. state of New Jersey Estimated population: 16.6 million Capital: Amsterdam (seat of government is The Hague) Other major cities: Rotterdam, Utrecht Total gross domestic product, 2006: $612.7 billion Estimated GDP growth rate, 2006: 2.9 percent Main export partners: Germany, Belgium, United Kingdom, France, Italy, United States Main import partners: Germany, Belgium, China, United States, United Kingdom, Russia, France Military expenditures as percent of GDP, 2005: 1.6 percent Languages: Dutch; Frisian. About 85 percent of the population can speak English. Sources: CIA World Factbook; Netherlands Foreign Investment Agency BOEING FRONTIERS October

5 It s our future John Bruins works on a C-17 ramp attach torque box at Stork Aerospace in Papendrecht. The company was named a 2004 Boeing Supplier of the Year for its work on the C-17 and Apache programs. Actions cited in this story show how employees are applying concepts of the Boeing Management Model to support the company s business strategies. Here s how. Growth and productivity: Integration, global partnerships. To learn more about the Management Model, visit boeing.com on the Boeing intranet. SAM RENTMEESTER/FMAX PHOTO Boeing also created an opportunity with the Institute of Knowledge and Technology Center and machining company Genius Klinkenberg International, in which Boeing Quality and Lean+ experts provided training to a consortium of small businesses with GKI as focal. Boeing is helping to create business relationships with economic benefits to the Netherlands that extend beyond the terms of the contract obligations, said McLean. In return, these Dutch entities have an interest in supporting the sale of our products and services. Preferred supplier: Stork Aerospace One such entity is Stork Aerospace, a close-knit group of companies that includes the heritage of aviation pioneer Anthony Fokker s namesake factory. Stork develops and produces advanced components and systems and supplies maintenance services to the commercial, civil and military aerospace segments. Our background in aircraft integration distinguishes us from other suppliers, said Peter Flinkerbusch, sales director for structures provider Stork Fokker, an operating company of Stork Aerospace. And the Dutch are traditionally known for their entrepreneurial spirit. We re a good partner for Boeing as it expands globally. Stork Aerospace s relationship with Boeing began with an offset program for Apache avionics bays, which developed into a regular contract. It also provides the C-17 s ramp attach torque box and troop door air deflector. The company was named a 2004 Boeing Supplier of the Year, Major Structures category, for its work on these programs. On the commercial side, Stork Fokker contributed to the wing redesign for the and is providing the engineering and initial production for that airplane s inboard flaps including management of the supply chain. Building on its success with other Boeing programs, wiring unit Fokker Elmo in 2005 won several contracts for the electrical wiring packages for the 737 and 777 and also has a development contract with IDS to provide wiring for the P-8A Poseidon. Marketing & Sales Manager Mischa Baert noted that a large part of the P-8A work will be subcontracted to U.S. small businesses while managed by Fokker Elmo. Stork is an intelligent supplier it improves the product and the process by emphasizing innovation, a strong customer focus and cost management, said Boeing s van Dijk. The company invests about 11 percent of its profits in research and development, and is enhancing both its Lean processes and its global supply chain including facilities in Lang Fang, China, and in Kent, Wash. We outsource some of our work in other countries not only to improve on costs, but also to support our customers business case in those locations, said Arjan Vergouw, Stork Aerospace director of Business Development. Many relationships, one Boeing Jan Narlinge, president, Boeing Northern Europe, calls the Netherlands an example of achieving an optimum. They want to be part European and part transatlantic and they ve been very successful, he said. Likewise, the Netherlands is an example of Boeing s success in building international relationships in all sectors. But we have to remember that customers don t see us as IDS or Commercial Airplanes or International they see us as The Boeing Company, Narlinge added. If we work together as one company, with an international outlook, we can only grow in the Netherlands, in Europe, and around the world. n maribeth.bruno@boeing.com 32 October 2007 BOEING FRONTIERS

6 Controllers work in the air traffic control tower of Amsterdam Airport Schiphol. Boeing is partnering on Air Traffic Management research and development work with KLM Royal Dutch Airlines, Schiphol and LVNL (Air Traffic Control the Netherlands), among other Dutch partners. The team s Tailored Arrivals concept recently completed in-service trials at the airport. LVNL PHOTO ATM: a common language One of Boeing s most exciting partnerships in the Netherlands is its Air Traffic Management research and development work with KLM Royal Dutch Airlines, Amsterdam Airport Schiphol, LVNL (Air Traffic Control the Netherlands) and other partners. The team has been working on concepts designed to save fuel and reduce emissions and noise while allowing aviation to grow. The Netherlands has stringent environmental requirements, complex levels of air traffic, lots of neighbors, demand for growth, said Rob Mead, a lead Phantom Works engineer for Boeing ATM. Partnering here gives us insight into some of the most demanding situations likely to be encountered in ATM. The team s first deployed concept was the collaborative decisionmaking tool that emerged from the joint Inbound Priority Sequencing project. It involves letting airlines influence which flights receive priority handling by ATM when demand exceeds capacity. It is now in use by KLM, in cooperation with LVNL and the Eurocontrol Central Flow Management Unit. Another concept the efficient, predictable, continuous descents known as Tailored Arrivals has completed in-service trials at Schiphol and then in San Francisco and with NASA. The participation of Eurocontrol Maastricht, which is responsible for traffic control in the upper airspace of Belgium, Luxembourg, the Netherlands and northwest Germany, expanded the project s European footprint, said Mead. The results are now being fed back into the next round of development in the Netherlands, through the Speed And Route Advisory project, Mead added. Senior Technical Fellow Belur Shivashankara said Commercial Airplanes will use knowledge gained in the Netherlands in developing computer programs that will help define optimum low-noise, low-emissions takeoff and landing procedures. We are also discussing features for the [aircraft] flight management computer to aid the use of environmentally progressive operational procedures. Shivashankara called his Dutch counterparts truly experts among the air navigation service providers. Our cooperation with Boeing has added momentum to our development work, said Evert Westerveld, manager of ATM R&D for LVNL. Our engineers and Boeing s connected well. There s respect for one another s expertise. The team also wants to play a part as larger U.S. and European ATM initiatives begin to define common architectures and interoperability standards. The United States is ahead in some aspects, while Europe is in others, said Eugenie Kalshoven-van Tijen, KLM ATM director of Strategy. We ll share what we ve learned so we each don t reinvent the wheel. Really big endeavors get a lot of press, and rightfully so, said Kevin Brown, Commercial Airplanes ATM vice president and general manager. But there will continue to be a critical need for spiraled development, testing, and deployment of transformational concepts of operation and technologies. That s where forward-looking partners can work together to change how airplanes fly. Maribeth Bruno BOEING FRONTIERS October