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BOEING SEES ADDING VALUE AS KEY TO SUCCESS

 BOEING SEES ADDING VALUE AS KEY TO SUCCESS
 LONDON, Sept. 3 /PRNewswire/ -- Technology, for the sake of


technology, will not sell airplanes. Instead, "new technology must provide net added value," said Richard R. Albrecht, executive vice president of the Boeing Commercial Airplane Group, speaking at the Financial Times Conference.
 "Airlines are looking for net added value," Albrecht said. "They need to justify that they are getting more total value by replacing older airplanes or buying additional airplanes. Net added value means they are looking not only at the initial cost and capability but also at the total life cycle cost that includes factors such as maintenance, training, reliability and commonality. Today there is stronger emphasis than ever before on whether new technology is in fact providing net value."
 Referring to a decision to replace his personal computer, Albrecht said, "To convince me to replace my old computer with a new one, my son had to convince me of the net added value. I considered speed, reliability, training, commonality, flexibility and economics.
 "Airlines are doing the same thing when they replace older airplanes and when they buy additional ones," he said. Albrecht added that since airlines are businesses, any new technology must provide net added value. "It has been that way in the past, and it will be even more so in the future."
 Albrecht said that "travelers have learned to expect an airline to operate reliably and on the schedule. In fact, they demand it. So reliability adds value. We and the engine manufacturers have made real progress on this score, but as with safety, the goal is perfection."
 Citing the 777 as an example of adding value with technology, Albrecht said, "on our new airplane, the 777, we will test the airplane systems in a single integrated entity -- before the airliner takes to the air." For the first time, Albrecht said, "we will go beyond the standard certification tests by 1,000 flight cycles to demonstrate the reliability our customers expect. This will also help demonstrate the features needed to obtain approval of extended-range twin-engine operations, a capability our customers expect on every 777 from the day they take delivery. These things add value."
 -0- 9/3/92
 /CONTACT: Dick Kenny, England, 44-628-773386, or T. Craig Martin, Seattle 206-237-8050, both of Boeing Commercial Airplane Group/
 (BA) CO: Boeing Commercial Airplane Group ST: Washington IN: AIR SU:


SC -- SE002 -- 6350 09/03/92 11:02 EDT
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Publication:PR Newswire
Date:Sep 3, 1992
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