Boeing is scaling back investment in its Air Traffic Management (ATM) business, which will be re-absorbed into the company's Phantom Works research and development organisation. ATM was one of two new business units formed by Boeing in a bid to diversify. The other, Connexion by Boeing, is investing heavily as it rolls out its broadband in-flight communications service.

Folding ATM into Phantom Works follows the retirement of John Hayhurst as chief executive and the appointment of Kevin Brown as vice-president, reporting to the Phantom Works president Robert Kreiger.

ATM was formed to protect Boeing's commercial aircraft business by enabling airspace system modernisation both technically and politically. The latter goal was achieved with last year's formation of a joint planning and development office within the Federal Aviation Admini-stration and transportation secretary Norman Mineta's January launch of the Next Generation Air Transportation System initiative to develop the airspace system for 2025 and beyond.

Boeing chief executive Harry Stonecipher says the company will continue to pursue advances in air traffic management. ATM is wrapping up tests under the Global Communications, Navigation and Surveillance System research programme jointly funded by Boeing and the FAA, and plans other smaller-scale technology demonstrations in the USA and abroad.

Boeing Integrated Defense Systems has appointed Pat Finneran vice-president of Aerospace Support, replacing David Spong.

Source: Flight International