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PARIS: Boeing lands digital service deals worth more than $100m

Boeing's fast-growing services business has disclosed more than $100 million-worth of orders and contracts for digital products with customers including major US carriers and smaller regional operators.

The deals represent continued expansion of Boeing Global Services, and another step toward that unit's goal of achieving $50 billion in annual revenue by around 2027.

During a press event on the third day of the show, Latvia carrier Air Baltic's chief executive Martin Gauss signed an agreement for electronic flightbag services from Boeing subsidiary Jeppesen.

Boeing also announced that Delta Air Lines had signed for digital charting and navigation products from Jeppesen, and that United Airlines had purchased Jeppesen's crew planning services.

JetBlue Airways, Japan Airlines, Cathay Pacific, Uzbekistan Airways and IndiGo's parent also signed agreements for Jeppesen products.

China's SkyCo International Financial Leasing purchased Boeing's aircraft lease and asset management software, while Nigeria carrier Air Peace and Poland's Enter Air signed deals for Boeing's Airplane Health Management services.

The company also landed several sales of its maintenance data products.

Boeing formed Global Services at Paris two years ago in a move that stripped services from other units, placing them under a single division lead by the unit's chief executive Stan Deal.

At the time, chief executive Dennis Muilenburg said Boeing aims to boost services revenue to $50 billion.

Global Services' revenue jumped 17% year-on-year in 2018 to $17 billion.

"That's a challenging goal that we aspire to," Deal says of the $50 billion target. "We will continue a series of organic and inorganic investments, with a primary focus on inorganic."

Boeing's proposed New Mid-market Airplane (NMA) represents an opportunity for Deal to move closer to his target. Should Boeing launch it, the NMA would enter service around 2025.

The airframer intends to continue "vertical integration" in the lead-up to that aircraft's potential development, he says. That means Boeing will acquire more of its supply chain, which means more opportunity to service the components that make up the aircraft.

Boeing previous structure in which services were embedded in other business units resulted in services being "second priority", Deal says.

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