Story ID: 475 BBJ
BBJ Enjoys Banner Year for Sales
By: Kerry Lynch
Caption: The unit has brought in sales for 14 aircraft since last NBAA that have crossed the company's VIP product line.
Word Count: 670
Following a sluggish 2016, Boeing Business Jets sales have bounced back, with the unit logging orders for 14 aircraft valued at $2.7 billion since the 2016 NBAA convention. The sales cut across the product line: seven were for the BBJ/BBJ Max lines, another for a 737, and the remaining split between the 787-8, 777-300ER and 747-8s.

At least a dozen of the orders have come in 2017, making this year one of the strongest sales years for Boeing Business Jets. Greg Laxton, who took the helm of Boeing Business Jets early this year, noted cyclic nature of the business and said, “its very humbling and exciting that we’ve had a good year.”

Laxton attributes the uptick to strengthening of economies worldwide. “The markets are coming back. GDPs are tracking upward, commercial traffic is trending upwards and even the cargo market, which had been lackluster, is trending upward,” he said. “The world has stabilized from an economic standpoint, which makes people comfortable with moving into VIP aircraft.”

While some of the sales have involved heads of state, the sales have been balanced among personal, government, charter and other uses. The sales also have been balanced geographically between Asia, Europe, North America and the Middle East.

Along with a stabilizing economy, Laxton was encouraged by the strong interest in the new Max family. Boeing has sold 16 Max models and expects to begin shipment of the first of the family the BBJ Max 8 to customers in early spring 2018.

The Max 8 already is in commercial service with a half-dozen airlines, Laxton said, noting its entry into service has gone very well and the aiplane is generating increased interest.

Four of the sales in the past year involve traditional BBJs, but the slots for those aircraft are coming to a close as the Boeing 737 line is expected to transition over to primarily a Max line in 2019. “We are starting to see most of the interest to switch to the Max,” he said.

The bizliner unit is highlighting the possibilities of the newest member to join the BBJ Max family, the Max 7, teaming with Paris-based design firm Alberto Pinto on an interior design concept. On display in a cut-away model at Booth C11808, the concept is designed to show clean, modern lines, but also emphasize the additional space and flexibility of the Max 7.

“Our customers can take advantage of multiple living areas, a full bedroom and full-size bathrooms and the new design beautifully highlights these advantages,” Laxton said.

Based on a shortened Max 8 airframe, the BBJ Max 7 will be 6 ft 4 longer than the original BBJ, providing space for a small office or additional space in a bedroom, master bath, and/or living space. In addition to space, the Max incorporates Leap-1B engines and other improvements that enable a 7,000-nm range.

Boeing Business Jets unveiled the Max 7 at last year’s NBAA convention and had secured the first order, from an Asian customer, by the end of that year.

For Laxton, NBAA 2017 is his first. Laxton joined Boeing Business Jets after serving as sales director in the Northeast Asia region, responsible for the sales of commercial airplanes and related services to Air China, Air China Cargo, Shandong Airlines and Shenzhen Airlines. He joined Boeing on the defense side after serving as a fighter pilot in the U.S. Air Force.

Laxton told AIN that he jumped at the opportunity to move over to the commercial side “because my entire life had been on the defense side,” and said he has enjoyed being in the commercial world. That also facilitated his transition to the Boeing Business Jets unit and, he said, adding that he has found the VIP world to be a tight-knit community. “The lure of BBJ is the small family both inside and globally,” he said. But while a small community, he added, “it's as diverse as it possibly can be.”