A long haul partnership - Boeing Australia€¦ · 10 Partnerships with Defence 15 Strengthening...

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Boeing Australia & South Pacific A long haul partnership

Transcript of A long haul partnership - Boeing Australia€¦ · 10 Partnerships with Defence 15 Strengthening...

Page 1: A long haul partnership - Boeing Australia€¦ · 10 Partnerships with Defence 15 Strengthening industrial links ... revenue in 2010, and sales in the vicinity of A$5 billion, ...

Boeing Australia & South Pacific

A long haul partnership

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04 Message from the President

06 Boeing Australia: An overview

08 Boeing Defense, Space & Security

09 Working with Defence

10 Partnerships with Defence

15 Strengthening industrial links

16 Boeing Commercial Airplanes

17 Efficient aircraft for the region’s airlines

21 World class composites research

22 Leading edge services

24 Boeing and the environment

26 Boeing’s contribution to Australia

28 Boeing Research & Technology-Australia

29 Providing innovative technologies

30 Research investment in Australia

33 Supporting education, training and skills transfer

34 Our partnerships in the community

Contents

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Message from the President

After almost 85 years in Australia, Boeing is well and truly a local company.

We’re a local employer, customer, supplier, educator, researcher, innovator, manufacturer and, most of all, part of the local community. In fact we employ nearly 3,000 people in Australia, we work with scores of local customers and over 1,000 local suppliers.

Together we generated nearly A$800 million in onshore revenue in 2010, and sales in the vicinity of A$5 billion, working with the Australian Defence Force, Qantas, Virgin Australia, and other customers. The work being undertaken to build parts for the 787 Dreamliner at Boeing Aerostructures Australia at Melbourne’s Fishermans Bend contributes greatly to these results - as the country’s largest single aerospace contract, it is valued at some $4 billion over 20 years.

The past two years alone have also seen the delivery of two new C-17 Globemaster aircraft, 24 Super Hornets and five Wedgetail airborne early warning and control aircraft for the Royal Australian Air Force. Indeed the modification work on the Wedgetail aircraft undertaken

by Boeing Defence Australia at Amberley in Queensland was the most complex aerospace modification program ever completed in Australia.

The need for a highly skilled workforce is crucial to the enduring success of our business, which is why we invest so heavily in the ongoing training and education of our employees. It is also one of the reasons we work closely with universities and tertiary education institutions all across Australia to nurture the brightest and best students and offer them opportunities to visit our local and international operations, here in Australia and around the globe.

In line with these priorities and efforts, Boeing Australia has been very pleased to participate in a series of government hosted events, which included the Clean Technology Summit, the Manufacturing Roundtable and the Future Jobs Forum, to discuss how Boeing can continue to contribute to a strong Australian high technology economy and innovative manufacturing industry.

Whether it is working with government, airlines or our suppliers, Boeing is deeply proud of our local partnerships, and we work hard to ensure that we are

finding and creating value. This is one of reasons we established the Office of Australian Industry Capability (OAIC) in 2007. This organisation is successfully bringing Australian companies into Boeing’s global supply chain. Thus far, OAIC has facilitated new and sustainable contracts worth more than $230 million to small to medium-sized enterprises (SMEs) all across Australia.

This vision to match the best of Australian innovation to the global strength of Boeing is exemplified in the continued growth of Boeing Research & Technology-Australia (BR&T-A). Established in March 2008, BR&T-A continues to excel in the development of a wide range of innovative technologies and works with closely with a number of key partners, including a highly productive 22-year relationship with CSIRO.

In fact, in May 2011 with CSIRO, Boeing launched the results of the world-first earth-to-engines biofuel study Flight Path to Sustainable Aviation, undertaken in partnership with Qantas, Virgin Australia, Air New Zealand, The Climate Group and other stakeholders. The study found biofuels in aviation could cut Australia’s reliance on fuel imports by $2 billion and

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Boeing Australia & South Pacific 5

Ian Thomas

President Boeing Australia & South Pacific

greenhouse emissions by 17 per cent, and has set the stage for the development of a new industry in and for Australia.

More recently we opened a state-of-the-art robotics training facility at Swinburne University in Victoria which is enabling qualified Australian SMEs, working within the defence supply chain, to develop new skills and training in order to boost their competitive advantage when seeking contracts here and around the world.

We’re very proud of our long history in Australia and of our partnerships here, and we are even prouder to bring the best of Australia to the world and the best of Boeing to Australia. Boeing offers long term partnerships based on trust and performance. Much has changed in the past 85 years, but Boeing remains an integral part of the fabric of the Australian aerospace and defence industry.

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Boeing Australia represents the Company’s largest operational footprint outside the United States, with nearly 3,000 employees across 28 locations. In 2010, strong operating results helped drive onshore revenues totaling some $800M, with nearly $5B in orders from both commercial and defence customers.

Boeing is part of the aerospace and defence fabric of Australia, with a heritage stretching back nearly 85 years and a reputation for building long term partnerships based on trust and performance.

The company has seven wholly-owned Australian subsidiaries working across a wide range of aerospace, commercial aviation, defence, logistics, training and navigation businesses:

• Boeing Australia Holdings, Ltd – established in 2002 and headquartered in Sydney.

• Boeing Aerostructures Australia – Australia’s only manufacturer of complex aerostructures, including rudders for the Boeing 777 and the moveable trailing edge control surfaces for the new 787 Dreamliner.

• Boeing Defence Australia – one of Australia’s leading defence companies, specializing in the support, maintenance, modification and upgrade of defence platforms, and communications, training and logistics.

• Boeing Training & Flight Services Australia – a world-class provider of commercial flight and technical training to domestic and international airlines.

• Aviall Australia – a leading supply-chain management provider of new aviation parts and after-market services, which distributes products to the aerospace, defence and maritime customers.

• Insitu Pacific – designs, develops, and manufactures Unmanned Aerial Systems for commercial and military applications. Its Brisbane office acts as the regional headquarters for the Asia-Pacific region.

• Jeppesen Australia provides navigation services, planning and operations management tools for aviation and maritime users.

The company is also represented in Australia by:

• Boeing Research & Technology-Australia, established in early 2008 as the focal point for Boeing’s research and development collaboration with Australian industry, government and academia.

• Boeing Commercial Airplanes (Sales and Field Services) operating in Australia since 1959 when Qantas became the first international customer for the Boeing 707.

• Boeing Defense, Space & Security (Business Development, Product Support) works closely with the Australian Defence Force to provide leading-edge platforms, services and solutions, and is the parent company to Boeing Defence Australia.

Boeing Australia: An overview

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Boeing products including

Super Hornet, 777-300ER,

C-17 and 737-800 are in service

with defence and commercial

customers in Australia.

Boeing Australia & South Pacific 7

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Boeing Defense, Space & Security

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Boeing Defense Space & Security (BDS) products and services combine weapons and aircraft capabilities, intelligence and surveillance systems, communications architectures, Performance Based Logistics and extensive large-scale integration expertise.

Current BDS products in or destined for Australia include:

• Five C-17 Globemaster III military transport aircraft with a letter of request for a sixth.

• Five CH-47D Chinook helicopters to be joined by seven CH-47F Chinook replacement helicopters from 2014.

• Six Wedgetail Airborne 737 Airborne Early Warning & Control aircraft.

• 24 F/A-18F Super Hornets.

• 71 F/A-18 Classic Hornets including the Hornet Upgrade Phase 2.3 Program.

• Army Aviation Training and Training Support.

• Vigilare ground-based air defence system

• Modernised High Frequency Communications system.

• Harpoon missiles.

• Joint Direct Attack Munitions.

• ScanEagle Unmanned Aircraft System.

• Participation in the United States Navy P-8A incremental development program.

• Joint participation with the United States Air Force on the Wideband Global SATCOM satellite program. Australia has paid for satellite number six, with access to the entire constellation.

• Purchasing a specialised Ultra High Frequency communications payload on Intelsat Ltd’s IA-22 satellite built by Boeing.

Working with Defence

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Boeing Defence & Security (BDS) works closely with its Defence customers in Australia to ensure there is a responsive, engaged and well-coordinated partnership in place.

In recent years BDS has achieved a number of milestones with its Defence customers including the delivery of 24 Super Hornets F/A-18/F, the order of a fifth heavy lift C-17 aircraft and the delivery of Vigilare, the integrated air defence Command and Control (C2) system as well as the Modernised High Frequency Communications system.

The organisation has an office in Canberra as well as product support teams at Amberley in Queensland and Williamtown, New South Wales, and works alongside defence businesses Insitu Pacific and Boeing Defence Australia to deliver the best integrated solutions for our customers.

Insitu Pacific’s Australian operation is the company’s first international expansion outside the United States and a subsidiary of Boeing Australia Holdings. Insitu Pacific markets the ScanEagle unmanned aerial system (UAS) which is currently deployed in support of Australian troops in Afghanistan where it has flown more than 40,000 combat hours.

Boeing Defence Australia (BDA) is the country’s leading defence aerospace enterprise. The business supports some of the largest and most complex programs for the Commonwealth of Australia, the Australian Defence Force and international customers.

Integrated Logistics provides platform maintenance and upgrades, component maintenance solutions, and technical support for Australian government, defence and commercial customers. Projects and/or key capabilities include:

• F/A-18F Super Hornet Sustainment.

• F/A-18 Hornet Upgrade 2.3 and engineering services.

• C-17 Globemaster III logistics support.

• Technical services including network centric logistic solutions, spares and repairs, life cycle cost modelling, reliability engineering, technical publication management and specialist engineering services.

• Support services at Royal Australian Air Force Base Amberley in south-east Queensland.

• Army Aviation Training and Training Support.

• Boeing Australia Component Repairs, which maintains, repairs and overhauls composite and metallic structures.

Partnerships with Defence

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Tactical Derivative Aircraft supports commercial to military conversion projects for countries acquiring Boeing Airborne Antisubmarine Warfare and Intelligence, Surveillance and Reconnaissance products.

Key projects include:

• Wedgetail AEW&C In-Service Support and modification.

• Korea’s Peace Eye program initial acquisition support, including the initial training of the Republic of Korea Air Force and Korean industry to assume responsibility for in-service product support activities.

• Provision of product support deliverables during the acquisition and initial support phases of the Peace Eagle program for the Turkish Air Force.

Network & Space Systems - Australia develops and delivers complex command, control (C2) and communications (C3) systems, intelligence and surveillance systems, network integration, and communications architectures.

They also operate, maintain and enhance communications and mission critical infrastructure for defence and government customers.

Key projects and/or products include:

• Vigilare ground-based air defence system Logistics Support and a Contractor Standing Capability.

• Network Centric Command and Control System, which is an exportable version of Vigilare for international customers.

• Modernised High Frequency Communications system support services and development of a Land High Frequency Communications System variant.

• Defence Communications Network.

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A 737 AEW&C Wedgetail aircraft

releases flares during Counter

Measures Dispenser System tests.

Vigilare in operation at the Eastern Regional Operations Centre at

Royal Australian Air Force Base Williamtown, New South Wales, during

Exercise Aces South.

• Defence Signals Directorate (P243) program.

• High Frequency Modernisation Program Network operation support.

• Mobile User Objective System Phase 1 & Phase 2 construction.

• Internal External Communications Systems support for the Royal Australian Navy’s six Collins Class submarines.

Systems Analysis Laboratory at Boeing’s Brisbane offices offers customers the opportunity for analysis and experimentation of advanced concepts and military operations. It is operated by a team of highly skilled software engineers and tri-service ex-military operations analysts to provide decision support services to defence projects. Using Boeing’s international laboratory network, LabNet, the Systems Analysis Laboratory team can reach out and draw upon the expertise of their counterparts in the United States, United Kingdom and other Boeing facilities throughout the world.

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Signing of the OAIC deed.

The Super Hornet provides Australia with an immediate next-generation air combat capability ideallysuited to RAAF requirements. Already delivering on budget and ahead of schedule, Boeing and its Hornetindustry partners are committed to ensuring superior program performance in the air and on the ground.

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The Office of Australian Industry Capability (OAIC) is proving to be a highly successful partnership between Boeing and Australia, with some 240 requests for quotation released to Australian industry and more than US$230 million in contracts awarded since November 2007.

Boeing was the first company to sign-up to the Australian Government’s Global Supply Chain (GSC) program. The Defence Materiel Organisation (DMO) has since signed up three additional companies to the GSC program, which is focused on helping increase business opportunities for Australian companies overseas.

The OAIC works primarily with export-ready Australian small to medium sized enterprises (SMEs), identifying bid opportunities both within Boeing and its international supply chain, matching local capability with global requirements.

This partnership goes well beyond mere introductions. Boeing offers a variety of training and mentoring programs to SMEs to ensure that they have the knowledge and skills to deliver in the global marketplace. Past training has included program management, business development and communications training as well as hands on classes

such as high speed titanium and aluminum machining, Geometric Dimensioning and Tolerancing (GD&T), Quality Assurance and LEAN manufacturing, which are essential to be part of this global supply chain. Additionally, four participants a year are selected to participate in a week long executive training program at the Boeing Leadership Center in St. Louis.

At a practical level, the OAIC has also initiated and completed export licences for most major defence programs at Boeing, which helps pave the way for eligible AS9100 approved Australian suppliers to bid on upcoming defence related opportunities. The OAIC, in partnership with the DMO and Boeing Research & Technology-Australia (BR&T-A), recently established a purpose-built facility at Swinburne University for SMEs to engage in a range of robotics training.

Like any good partnership, Australian SMEs play their part by investing the time and resources necessary to participate in the GSC program. For example, they may be asked to take part in a capability conference overseas where the OAIC brings them together with potential customers and enables them to showcase their skills in areas like machining, sheet metal, composites, simulation

and modelling, and cyber security. In addition to attending conferences, the OAIC has facilitated hundreds of meetings in the United States, Canada, Asia and Europe with Boeing and its top tier sub-contractors.

In addition to taking Australian businesses overseas, the OAIC has also brought international procurement managers and executives from Boeing and its major sub-contractors here to visit machining, sheet metal, composites, cabling, processing and tooling companies in Adelaide, Melbourne, Sydney, Perth and Brisbane. These visits have proven extremely successful and have resulted in multiple bid opportunities for local suppliers.

Another key focus of the OAIC is to match Australian-developed technology with global partners, creating sales and collaboration opportunities. The OAIC, along with BR&T-A, has visited a number of companies, universities and government facilities, conducting technology assessments which have resulted in several collaborative projects between Boeing and local technology companies.

Strengthening industrial links

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Boeing Commercial Airplanes

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Boeing Commercial Airplanes opened its Australian office in 1959 when Qantas became the first international customer for the company’s first passenger jet, the Boeing 707. The move revolutionised air travel for Australians by halving flight times to the rest of the world and began a long partnership between Boeing and Qantas.

Today Boeing works closely with all major airlines in the South Pacific including Air New Zealand, Air Pacific, Qantas and Virgin Australia. In fact, Boeing is the most popular choice of aircraft for airlines flying in the Pacific.

Boeing is proud of its long relationships with its commercial customers in the region.

Qantas operates one of the world’s largest fleets of 747

aircraft, along with twin-aisle 767 aircraft, 717s and the

popular single aisle 737 aircraft. Qantas currently has 64

in its fleet (having retired or sold some over the years).

These include the Next-Generation 737-800 aircraft, the

most economical, fastest and most efficient single aisle

plane in its class. Qantas bought its first 737-800 jets in

2002 in one of the fastest aircraft deliveries in history with

the first 15 planes arriving within 100 days of contract

signature.

Indeed, the 737 family has proven a tremendous

workhorse for many airlines in this region making up

a large proportion of the fleets of Virgin Australia, Air

Pacific, Air Vanuatu, Air New Zealand, Our Airline

(formerly Air Nauru) and Qantas.

Boeing’s relationship with New Zealand began in 1966

when the National Airways Corporation, which later

became part of Air New Air Zealand, purchased three

737s. This relationship was further cemented in 1981

when Air New Zealand purchased its first jumbo jet and

began service from Auckland to London the following

year. Since that time, the airline has become a leading

global carrier and currently deploys 747s, 767s, 737s as

well as both the 777-200ER and 777-300ER. Air New

Zealand is the launch customer for the much anticipated

787-9 Dreamliner.

Efficient aircraft for the region’s airlines

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Virgin Australia domestic services launched in 2000 with

just two 737-400 planes. Now the airline and its sister

carriers Pacific Blue and Polynesian Blue operate more

than 50 Boeing 737-700 and Next-Generation 737-800

aircraft, and Virgin Australia has 40 Next_Generation 737-

800 aircraft on firm order as well as additional options.

When Virgin Australia’s international arm, V Australia

launched its long haul routes, it chose the comfortable

and spacious twin aisle 777-300ER. Today it has five

777-300ERs in its fleet.

Air Pacific, the national carrier of Fiji, operates 747s, 767s

and 737s to Australia, New Zealand, Hong Kong and the

United States.

Boeing aircraft have also proven popular with the

governments of Australia and New Zealand. The Royal

New Zealand Air Force operates two 757-200 aircraft in

a variety of roles, while the Australian Government chose

two Boeing Business Jets (BBJs), a version of the 737,

for their ability to fly anywhere in the world with just one

stop.

Headquartered in Washington State in the United States, Boeing Commercial Airplanes offers a family of technologically advanced aircraft, including one that can seat more than 500 and another that boasts the longest range in the world, at more than 17,300 km.

With a workforce of around 65,400 people, Boeing Commercial Airplanes and its global network of suppliers are hard at work building the aircraft of tomorrow.

The Boeing 787 Dreamliner is a next-generation jet with advanced technolgies in materials, systems, engines and aerodynamics and significant improvements for passengers. The aircraft has been ordered by Qantas and Air New Zealand and when delivered will set a new benchmark for fuel efficiency, passenger comfort and environmental performance.

The company has taken lessons from the development of the interior of the 787 and applied them to designing a new interior for its 737 aircraft - the “Boeing Sky Interior”. The interior architecture, lighting and design of the overhead bins has created a sense of greater spaciousness and comfort for passengers. Australians will find this on 737 aircraft flown by both Qantas and Virgin Australia.

Other new jets include the 747-8. Boeing studied the market feasibility of a new 747 for some time, working with operators to establish their requirements for an incrementally larger 747 to continue the profitability of current 747 fleets. By working together with customers and applying the innovative new technologies of the 787 Dreamliner, Boeing created the 747-8 family that meets airline requirements for a passenger aircraft that serves the 400 to 500 seat market.

Boeing recently launched the 737 MAX, the new engine variant of the market-leading Next-Generation 737. It will deliver maximum efficiency, maximum reliability and maximum passenger appeal through the new Boeing Sky Interior.

Virgin Australia 737 with Boeing Sky Interior

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Inspecting, drilling and laying up

composite materials at BAA.

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Boeing Aerostructures Australia (BAA) plays a key role in the manufacture of the 787 Dreamliner aircraft.

BAA is a world-class manufacturer of aircraft components and has designed and is building the moveable trailing edges for the wings of the new super-efficient aircraft.

BAA is highly regarded around the world for its work in the area of advanced composites in addition to manufacture of other aerostructure components, the company’s high-tech specialisation has led to work as the sole source of the wholly-composite rudder for the Boeing 777.

The team at BAA provide customers with a complete solution to aircraft component manufacture - from developing the most aerodynamic and efficient design, to rigorous testing processes. The company also works with a large number of smaller local companies putting millions of dollars into the Australian economy each year and enabling development of new skills across the workforce.

World class composites research

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With so many commercial customers in this part of the world, integral to the Boeing Commercial Airplanes operation in Australia is Commercial Aviation Services (CAS), which provides aviation and transport customers with lifecycle solutions, training, materials and engineering services, and 24x7 global customer support.

In Australia, the CAS family of organisations is made up of Aviall Australia, Boeing Field Service, Boeing Training & Flight Services Australia, Jeppesen Australia and Jeppesen Marine.

Aviall Australia is a leading solutions provider of aftermarket supply-chain management services for the aerospace and defence industries and serves more than 500 customers in Australia, including Qantas and the RAAF. The company is part of Boeing’s worldwide service infrastructure to deliver vital spares, products and services when and where they’re needed, and has access to two million catalogue items from its customer service centres in North America, Europe and Asia-Pacific.

Boeing Field Service operates in Australia as part of CAS. Field Service provides Boeing customers with timely, on-site technical advice and the ability to call upon any BCA technical resource to resolve operator problems. Dedicated Field Service representatives are located in Brisbane, Sydney, Melbourne and Auckland.

Leading edge services

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Boeing Training & Flight Services Australia offers flight and technical training to airlines from across the region and across the globe. In Brisbane, Boeing operates five full-flight simulators and one fixed-base training device at a $45 million training centre in partnership with Virgin Australia, and provides training for Boeing 717, 737 Next Generation and Airbus A320 aircraft. In Sydney, a Boeing training centre in partnership with V Australia supports Boeing 777 training. A centre in Melbourne partners with Ansett Aviation Training and focuses on Boeing 737 Next-Generation and Airbus A320 airplane training.

Jeppesen Australia provides today’s most advanced flight information solutions and computerised flight planning and optimisation solutions, as well as crew and fleet scheduling. Jeppesen Marine supplies maritime navigational data and operational information to customers with its highly acclaimed digital cartography and software.

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As an industry, aviation has been a leader in working together and developing new ideas and technologies to drive sustainable improvements in environmental performance, and Boeing both globally and in Australia has been at the forefront of much of this work.

Boeing is the founding member of the Defence Industry Sustainability Forum since its formation in late 2009. The group acts as a single point of contact between Defence contractors and regulators and has begun to partner on environmental projects such as recycling and energy reduction on Defence bases.

Boeing Defence Australia has set a goal of certifying all its operations to the international environmental management standard ISO14001 and in 2011, the first site at RAAF Amberley in Queensland achieved this goal. In 2012 Boeing’s operations at Williamtown, NSW, and Oakey, Queensland, will be audited for this standard, and BDA has a strategy in place for the remainder of its operations and sites.

Since 2009 Boeing Australia has produced three

annual submissions under the National Greenhouse

and Energy Reporting Act. Over this time the company

has also achieved a 9 per cent reduction in energy

consumption and greenhouse gas emissions. In order

to ensure the utmost veracity of this information, Boeing

Australia voluntarily made the decision to have its data

verified by a third party assessor to ensure it has a

robust data collection and reporting process in place

throughout the company.

Many Boeing sites in Australia also have environment

action plans. These were created with input from all

employees, from managers to shop floor, to identify

energy and waste reduction opportunities. These

initiatives have included separating and recycling

materials (co-mingled bins), installing sensor lights and

water efficiency devices, reducing water consumption

and eliminating waste.

Boeing and the environment

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More broadly, Boeing has established several partnerships aimed at improving environmental education among the community, fostering environmental research and development in Australia and working with the industry as a whole to progress environmental initiatives. These include an ongoing relationship with Greening Australia which includes a program for 2011-12 to assist with the revegetation of part of the Lockyer Valley devastated by the 2011 Queensland floods.

Each year for the past three years Boeing has also convened an Aero Environment Summit that brings together key representatives from airlines, airports, manufacturers, government agencies, environment organisations and universities and research organisations to present latest findings, update on programs, share ideas and inspire through collaboration and joint action.

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OAIC hosts visit to Boeing’s

Everett plant.

Boeing’s presence in Australia extends back to 1927 through its subsidiary Boeing Aerostructures Australia, which was acquired as Hawker De Havilland by Boeing in 2000.

Prior to this, Boeing’s first direct investment in Australia came through its acquisition of the multi-national Rockwell group in 1996, in which the company took ownership of the Australian company Rockwell Electronics and Aerospace Technologies of Australia. The former Rockwell Australia, which had been incorporated in 1986, became Boeing Australia Limited. In 2009 this company changed its name to Boeing Defence Australia.

The five major subsidiaries were acquired as follows: Boeing Training & Flight Services Australia formerly named Alteon Training Australia in 2003, Jeppesen Australia and Jeppesen Marine in 2007, Aviall Australia in 2008 and Insitu Pacific in 2009.

With an overall investment of more than $800 million in its Australian businesses - which in turn produce annual sales of approximately $800 million - Boeing has strategically expanded its presence to become much more than an aerospace company.

Boeing’s operations are located in every Australian state and territory (with the exception of Tasmania) with a total of 28 sites and nearly 3,000 direct employees. A large number of Australian suppliers and small to medium sized enterprises support Boeing’s activities. Boeing’s suppliers provided more than $243 million worth of goods and services to operations, which in turn helped Boeing add value to the Australian economy.

In addition, Boeing generates approximately $400 million in export revenue for Australia through production of components for various commercial and military aircraft to software products and services, defence-related equipment and services, and specialist consulting services – further highlighting the company’s contribution to the Australian economy.

Boeing’s contribution to Australia

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Adelaide

Brisbane

Cairns

Darwin

Exmouth

Geraldton

Nowra

Oakey

PerthSydney

Townsville

Williamtown

Hobart

Amberley

Canberra

Melbourne

Riverina

Victoria

• Expenditure: $120.95 million • Proportion of total: 51%

• No. of Suppliers: 593• Proportion of total: 36%

New South Wales

• Expenditure: $78.7 million • Proportion of total: 32%

• No. of Suppliers: 522• Proportion of total: 32%

Tasmania

• Expenditure: $0.8 million • Proportion of total: 0%

• No. of Suppliers: 3• Proportion of total: 0%

Australian Capital Territory

• Expenditure: $7.43 million • Proportion of total: 3%

• No. of Suppliers: 17• Proportion of total: 1%

Northern Territory

• Expenditure: $0.76 million • Proportion of total:

• No. of Suppliers: 29• Proportion of total: 2%

Queensland

• Expenditure: $19.48 million • Proportion of total: 8%

• No. of Suppliers: 324• Proportion of total: 20%

South Australia

• Expenditure: $2.25 million • Proportion of total: 1%

• No. of Suppliers: 126• Proportion of total: 8%

Western Australia

• Expenditure: $12.91 million • Proportion of total: 5%

• No. of Suppliers: 21• Proportion of total: 1%

Tindal

Source: Boeing

Investing in Australia’s economy: suppliers in all states

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Boeing Research & Technology–Australia

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In March 2008, Boeing established an Australian branch of Boeing Research & Technology (BR&T), its advanced research and development unit, to better support its businesses here in Australia by providing a focal point for collaboration with research and development organisations including universities, private sector providers, the Commonwealth Scientific and Industrial Research Organisation and the Defence Science and Technology Organisation.

BR&T-A is a highly collaborative organisation that brings the best of Australian technology to Boeing. BR&T-A supports the company’s pursuits in Australia by reducing technical risks on current programs and providing innovative technologies that enable the development of future aerospace solutions while improving the cycle time, cost, quality and performance of current aerospace systems.

The work BR&T-A performs today transcends numerous parts of Boeing’s businesses in Australia including highly integrated large scale composite structures, platform maintenance technologies, light robotics and automation for aircraft manufacturing, autonomous systems supporting the commercial deployment of Unmanned Aircraft Systems (UAS), wideband communications, human factors and sensing to support high end defence

platforms and services, and leading the implementation of Boeing’s environment strategy around sustainable aviation fuels in Australia and the South Pacific region.

Other Boeing Research & Technology investments in Australia include:

• The hallmark of Boeing’s technology partnerships in Australia has been its 22-year relationship with the CSIRO. Over the course of the partnership, Boeing and CSIRO have jointly invested more than $100 million. In 2011, CSIRO was recognized with a Leader’s Choice award in the academia category of the Boeing Supplier of the Year Awards. Also in 2011, Boeing was awarded a CSIRO Gold Medal for Research Excellence.

Providing innovative technologies

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Unmanned Aerial Vehicles in action in the Boeing swarming laboratory

in the United States, a microscopic view of algae and robotics training

facility at Swinburne University.

• Boeing is recognised as a world leader in developing out-of-autoclave resin infusion technology for aerospace composite structures. Working with the research and development community, both within Boeing and across Australia, the focus is on producing new and improved resin systems and manufacturing approaches to achieve highly integrated large scale structures in support of Boeing Aerostructures Australia.

• In 2009, Boeing became a founding partner of the Advanced Manufacturing Research Centre (AusAMRC) located at Swinburne University of Technology. The AusAMRC brings together universities, research organizations and the Australian advanced manufacturing industry to deliver new platform technologies across major industry sectors in Australia, including aerospace.

• A new robotics training centre, also located at Swinburne and established in October 2011, focuses on access for small to medium sized enterprises and the exploitation of affordable light robotics technology in a high technology manufacturing environment.

• Boeing also has a significant and ongoing biofuels effort in Australia. This year, in partnership with airline customers, the CSIRO, the Department of Defence and other organizations, BR&T-A launched a world-

first sustainable aviation fuels roadmap, Flight Path to Sustainable Aviation, which provides a blueprint for the development of a local aviation biofuels industry.

• Boeing is also investing in UAS research through the Smart Skies Project, which is a leading-edge research program exploring future technologies to enhance the safe and efficient use of airspace for manned and unmanned aircraft. The project brings together specialist researchers from BR&T-A, Insitu Pacific Ltd and the Australian Research Centre for Aerospace Automation, which is a joint venture between the CSIRO and Queensland University of Technology, to explore the development of key enabling aviation technologies.

• Flight training instructors have long had to rely on guessing where a student is looking during training in the cockpit of a simulator or training aircraft. BR&T-A’s “gaze tracker” technology now enables the instructor to see where the student is looking in real-time. Through this technology, the instructor can identify and nurture good performance, while identifying and correcting poor technique that may otherwise persist undetected. The same team is also looking at integrating the gaze tracker into a Boeing 737 simulator at Boeing Training and Flight Services’ Brisbane campus.

Research investments in Australia

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UAV Challenge 2011.

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Boeing knows the future of the cutting-edge aerospace industry is through the development of smart, talented and enthusiastic people. In Australia, the company is passionate about encouraging young people through education to inspire their interest in science, particularly aerospace and aviation-related projects.

For example, Boeing Defence Australia supports the Gateway Schools Program, which is an initiative between the Queensland Government and industry bodies to create pathways for Queensland high school students to enter careers within the aerospace industry. At present 17 schools across the state are involved in the project, and 24 schools offer the aerospace studies curriculum to more than 1,200 year 11 and 12 students.

Boeing also works closely with selected Australian universities to enhance undergraduate curricula, support continuing education of Boeing employees, recruit candidates for employment and collaborate on research that benefits the company’s long-term business needs. Since 2008, Boeing has contributed ongoing financial support and in-kind contributions to Australian universities and is currently supporting University of Queensland, Queensland University of Technology and Royal

Melbourne Institute of Technology University – with funds used for student projects, travel bursaries, scholarships, awards and student outreach programs, to name a few.

In addition to educating high school and university students, Boeing is dedicated to life-long learning for its employees. The company encourages local and international study, and each year across the business a number of Australian employees undertake professional assignments and gain exposure to programs from a global operations perspective.

The skills transfer aspect also extends to Australian small to medium enterprises working with Boeing. A number of Australian businesses have benefited from assistance in the implementation of initiatives like quality assurance and the lean manufacturing principles of the Boeing production system, which has led to development and expansion of their manufacturing skills and the knowledge and expertise to bid for further work in the aircraft and aerospace industries.

Supporting education, training and skills transfer initiatives

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In every part of the globe The Boeing Company takes its role in local communities very seriously.

Over the past five years, donations of more than $3 million have been made to a number of Australian and New Zealand community groups and causes.

For Boeing, working with community groups means not only choosing organisations where the need for financial support is great, but also identifying thoughtful and appropriate partnerships that offer opportunities to inspire, inform and engage others, including our employees.

In Canberra the partnership with the renowned Australian War Memorial fits perfectly with this ethos. One of its mandates is to ‘encourage others to remember, interpret and understand the Australian experience of war and its enduring impact on Australian society’. Boeing is proud to support this important national effort.

Education and life-long learning are key values for the entire Boeing Australia team, which is why the company has chosen to work with The Smith Family charity for more than 40 years, and it’s why today we are playing a key role in its “Learning for Life” program. This program ensures that young children get the best possible start by exposing them to a range of early learning opportunities.

This support is much more than simply handing over a cheque, and has seen many Boeing employees around the country engaged in Smith Family activities in their own local communities.

Environmental considerations also drive Boeing’s people and business strategies; planes that use less fuel and enterprise-wide productivity that comes from saving energy, conserving water and eliminating waste; so it makes sense that one of the core community initiatives in Australia relates directly to the environment. With Greening Australia, the company and its employees have been involved in a number of tree planting days and other environmental activities.

Our employees are also engaged in the annual Boeing Global Day of Service, when they volunteer to work in areas of need in their local communities - for example, aged care, home repairs, supplying meals and many other forms of assistance.

Being part of a community also means being there when times get tough, and Boeing has played a part in making financial donations to communities at times of great need. Both Australia and New Zealand have been afflicted by severe natural disasters in the recent past, including tragic bushfires in Victoria, widespread flooding and

cyclones in Queensland, and the devastating Christchurch

earthquakes. Our employees worldwide were quick to

respond with donations which were combined with a

donation from The Boeing Company.

At Boeing, giving back to the communities in which we live

and work is a core value, one which we engage in every

day. It helps make us part of the fabric of Australia.

Our partnerships in the community

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The statements contained herein are based on good faith assumptions and provided for general information purposes only. These statements do not constitute an offer, promise, warranty or guarantee of performance. Actual results may vary depending on certain events or conditions. This document should not be used or relied upon for any purpose other than that intended by Boeing.

BOEING is a trademark of Boeing Management Company.Copyright © 2011 Boeing. All rights reserved.

Printed in AustraliaNovember 2011

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