BUKIT KAYU HITAM (March 7): Aircraft manufacturer The Boeing Co is bolstering its business segments to protect itself against cyclical demand.

Speaking to reporters at celebrations for the production of the 1.5 millionth part at Aerospace Composites Malaysia Sdn Bhd — its 50-50 joint venture with Hexcel Corp, Boeing Southeast Asia president Ralph L Skip Boyce said the group is looking to be less prone to cyclical demand fluctuations.

"We are trying to establish that Boeing is no longer going to be a cyclical company.

"We started up Boeing Global Services (BGS) 18 months ago, which took the service elements of Boeing defence and Boeing commercial combined into a new business unit," said Boyce.

Its BGS segment deals with follow-up service requirements for both its commercial and defence aircraft.

He added that with the inclusion of BGS, the group now has three business units, allowing the aircraft manufacturer to deal with cyclical demand.

The group's other businesses are its commercial aircraft and defence aircraft segments.

Boyce also said Boeing was introducing new disruptive elements such as artificial intelligence (AI) and that the group is acquiring companies that are supplying such technology.

He added that by 2025, the group is looking at collecting US$200 billion in revenue.

"By 2025, we see that Boeing commercial aeroplanes would be 50% of the revenue. The BGS and defence segments would be 25% and 25% respectively," said Boyce.

Of the 47,000 new planes the group plans to deliver globally over the next 20 years, a third of them would be released in the Asia-Pacific region, said Boyce.

He also highlighted that the current trade war between the US and China was a concern for the group.

"In a perfect world, the trade issues between the US and China are not going to have a major impact," he said while highlighting that the group is looking at more orders in China and Indonesia.