The Boeing Company

The Boeing company is one of the pioneers of the aircraft and military defense industry. Since Boeing is considered the world's largest aerospace company, the multimillion dollar corporation stresses the importance of having strong financial services. Boeing tackles the task of having strong financial services with Boeing Capital Corporation, or better known as Boeing Capital. Boeing Capital is a division of Boeing's company that strictly deals with all the financial aspects that affect the company. Boeing Capital's headquarters is located in Renton, Washington and is led by Scott Scherer. Scott Scherer is the vice president and general manager of Boeing Capital Aircraft Financial Services. As an asset-based financier, Scott "specializes in arranging creative finance and lease structures, managing technical assets, and offering a broad range of financing options and solutions."(Aircraft Financial Services 1) Scott leads a group of experienced experts in the aerospace industry. These experts combine their knowledge of aircraft financing with their wide-ranging customer knowledge, to mold the future of aircraft industry. Boeing Capital's efforts come from the desire to expand its global market and wipe out their competition. Although Boeing seems like it's making all the right adjustments to be successful, they are facing some major issues that are affected the growth of the company.

Two major issues that are hampering Boeing are raising fuel costs and the weakening economy. Both of these issues are affecting the aerospace industry a great deal. When fuel cost skyrocketed it forced airliners to jack up the price of airfare. The price increases ultimately lead to a decline in the amount of people flying. As if price increases weren't enough reason not to fly, the weakening economy was the icing on the cake. The weakening economy made inflation and unemployment rates to reach all time highs. This led to many Americans becoming more aware of how they would spend their money. Since the price of airfare is up and people have less disposable income to spend, the aerospace industry is taking a big hit.

Boeing in particular is being hit the hardest because not only is its aircraft industry suffering, it military defense industry is suffering as well. One of the weaknesses of Boeing is its dependence on U.S budget spending. 50% of Boeing's total revenues come from government spending on military defense. Since the economy is declining, the government is more reluctant to spend money on military defense. Boeing last reported its total revenues at $60.9 million at the end of the fiscal year in December 2008. This is an 8.25% decrease from 2007 when Boeing reported total revenues at $66.3 million. Also in 2008, Boeing reported their net income at $2.6 million. This is a 34.41% decrease from 2007 when Boeing reported a net income of $4.1 million. With percentages down for previous years, every sale