Not satisfied with just building planes, Boeing wants to increase its share of the lucrative after-sales aircraft service business. The company sees a bright future and high margins in its parts and maintenance unit.
Image: picture-alliance/dpa/W. Grubitzsch
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Boeing announced Tuesday that it reached an agreement to acquire Florida-based aerospace parts distributor KLX for $4.25 billion (€3.5 billion) in an effort to boosts its aviation services business.
Executives at Boeing described the move as another significant step in growing its specialized global services arm, which was launched last year and aims to increase its initial annual revenue of $15 billion to $50 billion within five years.
"This acquisition is the next step in our services growth strategy, with a clear opportunity to profitably grow our business and better serve our customers in a $2.6 trillion, 10-year services market," said Stan Deal, head of Boeing Global Services.
Nuts and bolts
KLX provides aerospace parts and services to commercial, business and defense jet customers worldwide. In December, the company first announced it was considering options, including selling itself. In 2017, the company reported $1.7 billion in revenues.
Under the all-cash deal, Boeing will pay $63 per share and assume $1 billion in debt. As part of the deal KLX will divest its energy services business, which provides oilfield tools and services to the oil business.
Environmentally friendly air travel? Electric planes of the future
Flying in planes is bad for the climate. Do we need to give up flying for our environment? Not if electric planes being developed see success. Here's what the futuristic inventions look like.
Image: Eviation
Small, lightweight and emissions-free
Planes powered with renewable energy don't produce CO2 or other climate-damaging emissions such as nitrogen oxide and particles. They are smaller, lighter and more efficient than planes powered by kerosene. The Alpha Electro from the Slovenian start-up Pipistrel is already proving this since 2015, when it had its maiden flight.
Image: Pipistrel
Hop on the flying bus
Most companies and scientists see the future of electric planes in regional transport. The Israeli start-up Eviation plans to revolutionize commuting with their nine-seater. The prototype Alice can fly for up to 650 miles (1,000 kilometers), and will take to the sky in 2019 for the first time, according to the company.
Image: Eviation
Up, up and away
The flying taxi of the German company Lilium had its first successful flight in April 2017. The five-seater can take off and land vertically, has a reach of 190 miles and travels from London to Paris in just an hour. The goal of the company is for people to one day be able to order their flying cab via app for the price of a regular taxi ride.
Image: Lilium
A mix of old and new
Some plane manufacturers don't dare go all-electric just yet. In November 2017, Airbus, Rolls-Royce and Siemens announced they will jointly develop a commercial hybrid-electric prototype. The e-Fan X will be powered by three gas turbines and one electric motor. The companies aim to replace a second gas turbine with another electric motor at a later stage. A prototype is anticipated to fly in 2020.
Image: Airbus
Orange goes green
As part of British budget airliner EasyJet's plans to become more climate-friendly, it has entered into a cooperation with the United States startup Wright Electric. The goal is to develop a completely electric-powered plane for up to 150 passengers. It's not known yet when we can expect to see a first prototype.
Image: Wright Electric
Electric future
Experts believe that we could be flying in electric planes within 20 years. Various prototypes companies are working on have a range of a 155 to 650 miles. But technology is developing at an ever-faster pace. Who knows? One day, we might be able to travel around the world in emission-free planes completely powered by renewable energy. There's hope for all environmentally conscious travel addicts!
