In September 2001, Boeing moved its corporate headquarters from Seattle to Chicago. Chicago, Dallas and Denver – vying to become the new home of the world's largest aerospace concern – all had offered packages of multimillion-dollar tax breaks. Its offices are located in the Fulton River District, Chicago just outside the Loop, Chicago.
Boeing Everett Factory
On October 10, 2001, Boeing lost to its rival Lockheed Martin in the fierce competition for the multibillion-dollar Joint Strike Fighter contract. Boeing's entry, the X-32, was rejected in favor of Lockheed's X-35 entrant. Boeing continues to serve as the prime contractor on the International Space Station and has built several of the major components. Boeing began development of the KC-767 aerial refueling tanker in the early 2000s. Italy and Japan ordered four KC-767s each. After development delays and FAA certification, Boeing delivered the tankers to Japan from 2008 with the second KC-767 following on 5 March. to 2010. Italy received its four KC-767 during 2011.
In 2004, Boeing ended production of the 757 after 1,050 aircraft were produced. More advanced, stretched versions of the 737 were beginning to compete against the 757, and the planned 787-3 was to fill much of the top end of the 757 market. Also that year, Boeing announced that the 717, the last civil aircraft to be designed by McDonnell Douglas, would cease production in 2006. The 767 was in danger of cancellation as well, with the 787 replacing it, but orders for the freighter version extended the program.
International Space Station
After several decades of success, Boeing lost ground to Airbus and subsequently lost its lead in the airliner market in 2003. Multiple Boeing projects were pursued and then canceled, notably the Sonic Cruiser, a proposed jetliner that would travel just under the speed of sound, cutting intercontinental travel times by as much as 20 percent. It was launched in 2001 along with a new advertising campaign to promote the company's new motto, "Forever New Frontiers", and to rehabilitate its image. However, the plane's fate was sealed by the changes in the commercial aviation market following the September 11 attacks and the subsequent weak economy and increase in fuel prices.
Subsequently, Boeing streamlined its production and turned its attention to a new model, the Boeing 787 Dreamliner, using much of the technology developed for the Sonic Cruiser, but in a more conventional aircraft designed for maximum efficiency. The company also launched new variants of its successful 737 and 777 models. The 787 proved to be highly popular choice with airlines, and won a record number of pre-launch orders. With delays to Airbus' A380 program several airlines threatened to switch their A380 orders to Boeing's new 747 version, the 747-8.[ Airbus's response to the 787, the A350, received a lukewarm response at first when it was announced as an improved version of the A330, and then gained significant orders when Airbus promised an entirely new design. The 787 program has encountered delays, with the first flight not occurring until late 2009.
After regulatory approval, Boeing formed a joint venture, United Launch Alliance with its competitor, Lockheed Martin, on December 1, 2006. The new venture is the largest provider of rocket launch services to the U.S. government.
The Boeing 787 Dreamliner on its first flight
On August 2, 2005, Boeing sold its Rocketdyne rocket engine division to Pratt & Whitney. On May 1, 2006, Boeing agreed to purchase Dallas, Texas-based Aviall, Inc. for $1.7 billion and retain $350 million in debt. Aviall, Inc. and its subsidiaries, Aviall Services, Inc. and ILS formed a wholly owned subsidiary of Boeing Commercial Aviation Services (BCAS).
Realizing that increasing numbers of passengers have become reliant on their computers to stay in touch, Boeing introduced Connexion by Boeing, a satellite based Internet connectivity service that promised air travelers unprecedented access to the World Wide Web. The company debuted the product to journalists in 2005, receiving generally favorable reviews. However, facing competition from cheaper options, such as cellular networks, it proved too difficult to sell to most airlines. In August 2006, after a short and unsuccessful search for a buyer for the business, Boeing chose to discontinue the service.
On August 18, 2007, NASA selected Boeing as the manufacturing contractor for the liquid-fueled upper stage of the Ares I rocket. The stage, based on both Apollo-Saturn and Space Shuttle technologies, was to be constructed at NASA's Michoud Assembly Facility near New Orleans; Boeing constructed the S-IC stage of the Saturn V rocket at this site in the 1960s.
Boeing launched the 777 Freighter in May 2005 with an order from Air France. The freighter variant is based on the −200LR. Other customers include FedEx and Emirates. Boeing officially announced in November 2005 that it would produce a larger variant of the 747, the 747-8, in two versions, commencing with the Freighter version with firm orders for two cargo carriers. The second version, named the Intercontinental, is for passenger airlines. Both 747-8 versions feature a lengthened fuselage, new, advanced engines and wings, and the incorporation of other technologies developed for the 787.
Boeing also received the launch contract from the U.S. Navy for the P-8 Poseidon Multimission Maritime Aircraft, an anti-submarine warfare patrol aircraft. It has also received orders for the 737 AEW&C "Wedgetail" aircraft. The company has also introduced new extended range versions of the 737. These include the 737-700ER and 737-900ER. The 737-900ER is the latest and will extend the range of the 737–900 to a similar range as the successful 737–800 with the capability to fly more passengers, due to the addition of two extra emergency exits.
The record-breaking 777-200LR Worldliner, presented at the Paris Air Show 2005.
The 777-200LR Worldliner embarked on a well-received global demonstration tour in the second half of 2005, showing off its capacity to fly farther than any other commercial aircraft. On November 10, 2005, the 777-200LR set a world record for the longest non-stop flight. The plane, which departed from Hong Kong traveling to London, took a longer route, which included flying over the U.S. It flew 11,664 nautical miles (21,601 km) during its 22-hour 42-minute flight. It was flown by Pakistan International Airlines pilots and PIA was the first airline to fly the 777-200LR Worldliner.
On August 11, 2006, Boeing agreed to form a joint-venture with the large Russian titanium producer, VSMPO-Avisma for the machining of titanium forgings. The forgings will be used on the 787 program. On December 27, 2007 Boeing and VSMPO-Avisma created a joint venture, Ural Boeing Manufacturing, and signed a contract on titanium product deliveries until 2015, with Boeing planning to invest $27 billion in Russia over the next 30 years.
In February 2011, Boeing received a contract for 179 KC-46 U.S. Air Force tankers at a value of $35 billion. The KC-46 tankers are based on the KC-767.
Boeing jointly with Science Applications International Corporation (SAIC), were the prime contractors in the U.S. military's Future Combat Systems program. The FCS program was canceled in June 2009 with all remaining systems swept into the BCT Modernization program. Boeing works jointly with SAIC in the BCT Modernization program like the FCS program but the U.S. Army will play a greater role in creating baseline vehicles and will only contract others for accessories.
Defense Secretary Robert M. Gates' shift in defense spending to, "make tough choices about specific systems and defense priorities based solely on the national interest and then stick to those decisions over time" hit Boeing especially hard, because of their heavy involvement with canceled Air Force projects.
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