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Sat, Oct 12, 2013

Boeing Makes Changes Following JAL Airbus Order

Strategy And Marketing Functions Being Restructured According To Internal Memo

Japan Airlines' decision to spend over $9 billion on Airbus A350-XWB airplanes rather than Boeing's planned 777X has rattled the U.S. planemaker to the point that it now plans to restructure its strategy and marketing functions.

An internal memo from Boeing Commercial Airplane Chief Executive Ray Conner leaked to the media indicates that the action is directly tied to JAL's decision to go with Boeing's competitor, according to a report from Reuters.

With long-time Boeing exec Mike Bair retiring November 1, the marketing functions now under Bair will shift to a sales group led by marketing Vice President Randy Tinseth, who would report to global sales chief John Wojick. Strategy and business development will now fall under a finance group headed by Kevin Schemm, who will become chief of finance and strategy.

A Bank of America Merrill Lynch analyst said that the move probably would not have happened if Boeing had won the JAL order. He said Boeing is re-thinking its marketing strategies in light of the decision of the Japanese airline. Japan had traditionally been one of Boeing’s most reliable markets.

Boeing confirmed the validity of the memo, but would not make further comment, Reuters said.

FMI: www.boeing.com

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