Boeing Builds Saudi Relationships

By WENDELL MINNICK, ABU DHABI, United Arab Emirates

Boeing Integrated Defense Systems (IDS) is Riyadh-based Alsalam Aircraft Company expanding its relationship with Saudi Arabia by working with Riyadh-based Alsalam Aircraft Company to create a subsidiary focused on aviation logistics support, training and maintenance.

Alsalam provides commercial and military aircraft maintenance, modification, manufacturing and related services.

“Boeing is setting up a new subsidiary incorporated in Saudi Arabia utilizing Alsalam’s infrastructure to facilitate low-cost services to Boeing and other aviation manufacturer products,” said Boeing IDS vice president Jeffrey Johnson, who runs the firm’s Middle East business development. “The subsidiary will market and execute logistics support, engineering, training, maintenance, modifications, upgrades, assembly, repair and supply chain programs. The subsidiary will provide Alsalam better access to Boeing expertise and OEM date.”

This is part of Boeing’s strategy of building relationships with foreign firms in the form of partnerships and joint ventures.

“Boeing is looking for additional opportunities in the region to partner with local industry to provide value-added solutions to customers in the areas of military maintenance, upgrades and training,” Johnson said. “Additional partnerships would provide value-added solutions to customers in the areas of military maintenance, upgrades and training. Boeing is committed to strengthening its long-term partnership with the Middle East region.”

Formed in 2002, IDS had sales of $32.4 billion last year, half of Boeing’s total 2006 revenue of $61.5 billion.

IDS is organized into three parts: support systems (19 percent), network and space systems (37 percent), and precision engagement and mobility systems (44 percent).

Johnson said there is interest in the region for the F/A-18 Super Hornet, F-15 Super Eagle, C-17 Globemaster, and sustainment and integrated training programs.

Recent Boeing achievements include: a contract signed last week for six Chinooks with the Dutch government; successful initiation of the C-130 AMP flight test program, and pursuit of the U.S. Air Force tanker requirement with its KC-767.