Boeing Builds Its New Division With New Partnerships

February 8, aircraft-parts supplier Woodward quashed rumors that Boeing was taking them over, sending shares 12 points lower after having gained 7.5 percentage points on the rumors of a takeover. However, it appears the Fort Collins, Colorado-based company is in secret talks, according to anonymous sources, to help Boeing build a new division from a current value of $14.6 billion to an approximate worth of $50 billion. This division would provide a variety of services to airlines and the military, including maintenance, spare parts, and retrofits.

The Seattle Times cites George Godfrey, an analyst with C.L. King & Associates, as saying that “A joint venture would be more likely than an acquisition since about 35 percent of Woodward’s sales are to energy companies.” Woodward’s partnership with General Electric on building jet engines would also complicate such a takeover, to say the least.

Boeing has been expanding on the number of spare parts it provides, including one of Woodward’s specialties, actuators, as well as avionics, seats, and nacelles. In fact, Boing only last month revealed it was partnering with Adient, an automobile seats supplier, to create lie-flat seats for airlines. It’s likely Boeing would seek a similar partnership with Woodward, which would avoid problems surrounding Woodward’s already-existing partnership with GE.

Boeing is also in talks with Brazilian jet-maker Embraer to form a commercial jet venture. Because they produce complementary rather than competing products, a partnership between the two would seem a natural fit. However, the Brazilian government warns that while they would support a partnership between the two, a full-fledged buyout would likely be blocked.

Boeing is clearly working on massively expanding Boeing Global Services. These various negotiations demonstrate that Boeing intends to expand its market and remain competitive against peers such as AirBus. Deals with companies like Woodward, Adient, and Embraer show that Boeing intends to continue to expand its offering and thus its market share.

Follow us on social media for the latest updates in B2B!



Listen Carefully, Respond Creatively
April 12, 2024

In this captivating episode of the Fans First series, Jesse Cole, the mastermind behind the Savannah Bananas, delves into the transformative business philosophy of “listen carefully, respond creatively.” This approach has not only skyrocketed the Savannah Bananas to fame but also serves as a universal blueprint for revolutionizing customer service and engagement across all sectors. […]

Read More
Stacey Childress, Senior Advisor at McKinsey and Company, discusses higher ed
Bold Measures are Needed to Improve Investment in Higher Education
April 12, 2024

The stakes for higher education have never been higher as the educational landscape sees rapid evolution. As universities and colleges grapple with the dual challenges of technological disruption and increasing demands for accessible, quality education, the question of how best to implement investment in higher education becomes a priority. This debate has been ignited […]

Read More
wake up healthy
Hey, it’s 9 am… Wake up Healthy with 9amHealth!
April 12, 2024

Healthcare Rethink host Brian Urban explores ways to wake up healthy and stay healthy with his guest, Dr. Avantika Waring, MD, the Chief Medical Officer, at 9amHealth. This episode delves into the transformative approach to healthcare delivery championed by 9amHealth. Dr. Waring’s journey from a humanities student with a love for French to a […]

Read More
public safety and security
Strengthen Public Safety and Security: Modernize Radio Communication for Better Field Response
April 11, 2024

The importance of radio communication within public safety and security operations remains unbeaten in an era dominated by digital transformation. This medium, essential for over a century, continues to be the lifeline for responders on the front lines. From ensuring the safety of field agents to facilitating real-time critical information flow and enhancing situational […]

Read More