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keesje
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New Boeing Chief Strategy Reporting to Calhoun

Thu Sep 17, 2020 9:39 pm

Marc Allen has been named Chief Strategy officer. His predecessor becomes chief sustainability, reporting to the CFO.

https://www.flightglobal.com/airframers ... 22.article

Hopefully we'll see better strategic priorities and decisions 2020-2030 than we saw 2010-2020.
"Never mistake motion for action." Ernest Hemingway
 
Weatherwatcher1
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Re: New Boeing Chief Strategy Reporting to Calhoun

Thu Sep 17, 2020 10:16 pm

Wasn’t he in charge of the Embraer partnership before it collapsed?
 
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Revelation
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Re: New Boeing Chief Strategy Reporting to Calhoun

Thu Sep 17, 2020 10:21 pm

keesje wrote:
Marc Allen has been named Chief Strategy officer. His predecessor becomes chief sustainability, reporting to the CFO.

https://www.flightglobal.com/airframers ... 22.article

Hopefully we'll see better strategic priorities and decisions 2020-2030 than we saw 2010-2020.

The guy's a Yale Law School grad working at the corporate level i.e. across defense, space and commercial.

Not sure it'll make much of a difference to what BCA does or doesn't do.

On the other hand, the 757neo and 767neo fans should find a way to turn this in to good news for them! :biggrin:
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FLALEFTY
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Re: New Boeing Chief Strategy Reporting to Calhoun

Thu Sep 17, 2020 11:43 pm

Revelation wrote:
keesje wrote:
Marc Allen has been named Chief Strategy officer. His predecessor becomes chief sustainability, reporting to the CFO.

https://www.flightglobal.com/airframers ... 22.article

Hopefully we'll see better strategic priorities and decisions 2020-2030 than we saw 2010-2020.

The guy's a Yale Law School grad working at the corporate level i.e. across defense, space and commercial.

Not sure it'll make much of a difference to what BCA does or doesn't do.

On the other hand, the 757neo and 767neo fans should find a way to turn this in to good news for them! :biggrin:


He's a lawyer who will try to map out strategies for an aerospace engineering and production company. This will not end well...

The mass-firings should be centered in Chicago and go from the top-down, including Calhoun. Then they should shutter Chicago and move the HQ back to Seattle.
 
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 8:12 am

Revelation wrote:

On the other hand, the 757neo and 767neo fans should find a way to turn this in to good news for them! :biggrin:



LOL!!! :mrgreen: :D
:stirthepot: :airplane: "This airplane is designed by clowns, who in turn are supervised by monkeys" :airplane: :stirthepot:
 
Noshow
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 8:57 am

They should bring in more engineers into group leadership positions again. Technology is what Boeing is about it's not a law firm.
 
Opus99
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 9:00 am

I know we talk a lot about engineers at the top. But wasn’t Dennis an engineer by training? I mean I’m not disputing that argument I’m just putting this out there for thought.

Quite frankly, so far as he’s a qualified leader and he’s willing to listen to the engineers. Let the engineering expertise (which I presume includes safety) be THE integral part of your decision making.

Another note. Seems the CSO now reports to the CEO it was previously CSO reporting to CFO.

I imagine it to be a CSO comes up with strategy and CFO makes it “lean”. Which is part of the reason they are where they are now.

There doesn’t seem to be a lot of collaboration with management and engineers it’s more of delegation and I don’t think that’s right.
 
Noshow
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 9:17 am

True but hey must decide about their long term investments in new technologies. A lot will change and a lot of money will be needed. Look at the fast progress of new private competitors and the high risk new technology routes they are taking. Just milking existing structures to please the stock market and bonus payments would be the wrong way to go.
 
eamondzhang
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 10:25 am

I've heard that for years he's been worked as the ultimate CEO for Boeing so moving him to this essentially (I suspect) second-in-line position means he's gonna climb up the ladder shortly

Michael
 
twaconnie
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 10:44 am

Noshow wrote:
They should bring in more engineers into group leadership positions again. Technology is what Boeing is about it's not a law firm.


You are absolutely right,Boeing continues to make choices I don't understand.
 
Noshow
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 10:55 am

Maybe they plan to change their leadership after MAX RTS?
 
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LaunchDetected
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 10:56 am

He was Boeing vice-president for Global Law Affairs.
Law degree from Yale
Political science bachelor from Princeton

Those last years Boeing spent more efforts to sue its opponents than ensuring the quality of its products.
Caravelle lover
 
Noshow
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 11:06 am

But he was more of a technology cooperation guy. Not a bad background and certainly a bright mind. I still would add more engineers to the top league again.
 
MIflyer12
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 11:07 am

Noshow wrote:
They should bring in more engineers into group leadership positions again. Technology is what Boeing is about it's not a law firm.


You don't see engineers running Boeing. You don't see pilots - not people who spent 10+ years as commercial pilots, anyway - running major U.S. airlines. Ever think about why this is?
 
Noshow
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 11:20 am

I see Boeing not investing enough in new programs. And afterwards they all seem to need overly expensive repairs. Boeing has the know how for sure. It should make use of it and do things right from the beginning again. This is what more engineers at the top are needed for. Realistic schedules and budgets and road maps.
 
planecane
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 11:48 am

Noshow wrote:
I see Boeing not investing enough in new programs. And afterwards they all seem to need overly expensive repairs. Boeing has the know how for sure. It should make use of it and do things right from the beginning again. This is what more engineers at the top are needed for. Realistic schedules and budgets and road maps.


What program other than the MAX does this apply to? They sure invested a lot into the 787 and it still need a grounding and (relatively expensive) repair. The 77X hasn't been delivered yet so who knows if it will need a repair.

Surely, based on the sales in the segment, you can't be saying they should have done a clean sheet in the 777 size range?
 
sxf24
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 11:56 am

People running companies and organizations need to be leaders, not subject matter experts. They need to know how to listen, evaluate information and make decisions. At an engineering company, that means empowering engineers so they have a strong voice. This does not require being an engineer.

I make decisions every day on topics where I lack detailed technical knowledge. I make sure I have people on my team that offset my weaknesses.
 
Noshow
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 12:57 pm

From my view: They did not invest enough in the 787 from the beginning. That forced them to build a complex supplier structure including finally buying one of them who could not cope with his obligations. For marketing reasons (7-8-7 date) they put the program under enormous time pressure which led to the next hickups and so on. Finally it's a good airplane but only after double digit billion cost overruns. 30 billion?
The 777X was intended to be new from scratch. Like a big 787. They ended up with using the old fuselage. The 747 got a new wing that required unexpected structural change in the fuselage and created aerodynamic issues. Instead of building the MAX they should have build some NSA (like a small 787) early on to top the A320neo and match the A321neo. Those three types were the idea behind the original yellowstone project..

With a bit more early investments a lot of the later cost overruns could have been avoided it seems. But you will need people that are permitted to break the news early on and who understand the consequences.
 
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LaunchDetected
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 1:14 pm

MIflyer12 wrote:
Noshow wrote:
They should bring in more engineers into group leadership positions again. Technology is what Boeing is about it's not a law firm.


You don't see engineers running Boeing. You don't see pilots - not people who spent 10+ years as commercial pilots, anyway - running major U.S. airlines. Ever think about why this is?


Engineers are running Airbus. Almost all the top management studied in French engineering school (Polytechnique, Supaero) or German technical universities. With subsequent business administration education.
Caravelle lover
 
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keesje
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 1:38 pm

A decade ago a moonshot A320NEO beating 797 Narrow Body would have costed Boeing probably around $10 Billion.
Lack of vision, greet and underestimation of competition and customer loyalty let to groupthink that brought Boeing were they are today.

I remember concepts like this been thrown around by arm chair CEO's 15 years ago. http://1.bp.blogspot.com/-anTpTJSKZKw/T ... 252529.jpg
Over the last 10 years I've been surprised by denial of what's written on the walls and the short term choices.

Marc Allen doesn't have to be techie to be successful, the previous techie CEO wasn't.

Image
https://www.defesanet.com.br/bb/noticia ... m-Embraer/

He has to make sure he gets in some new blood /ideas, rather than continuing building on the "free cash flow" old boys network, that got it wrong.
Apart from draining the company while stuffing their bank accounts. https://www1.salary.com/BOEING-CO-Execu ... aries.html

Maybe Allen is less of the old boys network, Calhoun made him report directly to him instead to the CFO.. maybe something sunk in..
"Never mistake motion for action." Ernest Hemingway
 
Opus99
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 2:35 pm

LaunchDetected wrote:
MIflyer12 wrote:
Noshow wrote:
They should bring in more engineers into group leadership positions again. Technology is what Boeing is about it's not a law firm.


You don't see engineers running Boeing. You don't see pilots - not people who spent 10+ years as commercial pilots, anyway - running major U.S. airlines. Ever think about why this is?


Engineers are running Airbus. Almost all the top management studied in French engineering school (Polytechnique, Supaero) or German technical universities. With subsequent business administration education.

Yes but doesn’t necessarily make you fit to run the business. Running a business the size of Boeing I wonder as an engineer how often you actually use your skill? It’s the same Airbus with leaders that bribed to get their planes off the shelf. Like I said, it’s about being a good leader, teamwork. LISTENING to your engineers. It’s about empowering them to use their imagination and creativity to work hand in hand with the customers to build the the best aircrafts in the world.
 
Opus99
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 2:36 pm

keesje wrote:
A decade ago a moonshot A320NEO beating 797 Narrow Body would have costed Boeing probably around $10 Billion.
Lack of vision, greet and underestimation of competition and customer loyalty let to groupthink that brought Boeing were they are today.

I remember concepts like this been thrown around by arm chair CEO's 15 years ago. http://1.bp.blogspot.com/-anTpTJSKZKw/T ... 252529.jpg
Over the last 10 years I've been surprised by denial of what's written on the walls and the short term choices.

Marc Allen doesn't have to be techie to be successful, the previous techie CEO wasn't.

Image
https://www.defesanet.com.br/bb/noticia ... m-Embraer/

He has to make sure he gets in some new blood /ideas, rather than continuing building on the "free cash flow" old boys network, that got it wrong.
Apart from draining the company while stuffing their bank accounts. https://www1.salary.com/BOEING-CO-Execu ... aries.html

Maybe Allen is less of the old boys network, Calhoun made him report directly to him instead to the CFO.. maybe something sunk in..

According to Jon Ostrower, he hadn’t finished law school when the old boys were in their hay day. He’s about 45.
 
frmrCapCadet
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 3:19 pm

In sports few of the best coaches were also highly rated star players. Job call for different skill sets.
Buffet: the airline business...has eaten up capital...like..no other (business)
 
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Revelation
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 5:42 pm

frmrCapCadet wrote:
In sports few of the best coaches were also highly rated star players. Job call for different skill sets.

Right but it doesn't sound like this guy is a coach it sounds like he's an assistant to the team owner with a the job of creating power points in HQ rather than calling plays on the field.
Wake up to find out that you are the eyes of the world
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Opus99
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 6:16 pm

Revelation wrote:
frmrCapCadet wrote:
In sports few of the best coaches were also highly rated star players. Job call for different skill sets.

Right but it doesn't sound like this guy is a coach it sounds like he's an assistant to the team owner with a the job of creating power points in HQ rather than calling plays on the field.

How are we able to deduce this? It’s not as if he has not held positions of strategic leadership before. He’s clearly shown value if they’ve picked him amongst the array of white old men they could’ve picked. secondly. It’s obvious this role is for two things. To further develop his leadership skills because many are saying he’s up for the top job.

I don’t know how he works but at least let’s give him a shot before we come to a conclusion.

Everybody wants someone from the outside. That was Kevin mcallister from GE; he did nothing

Everybody wants an engineer. That was Dennis; he did worse than nothing.

The person that leads Boeing out of this and to greatness again might very well be this guy, it might very well not be.

None of us here have worked with him before to know if that is true or not.

He led that embraer Boeing deal even with the difficulties associated with it he managed to overcome a lot of them and it would’ve probably closer if not for Covid.

I mean so let’s see. Time will tell

Another thing I’d like to add is he comes from a different side of the business one I believe that does not involve cost cutting
 
AirlineBob
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 7:03 pm

Boeing needs a lot of things.

However, I think the thing that would get them ~75% of the way there is this: Leadership willing to invest in the long term, and not beholden to the stock price, or the quarterly earnings.

I think a lot of the things that currently bedevil Boeing can be traced to those simple concepts.

I'd love to see a CEO come out and say they're not going to be held hostage to the stock ticker. I'm not going to hold my breath though.
 
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FiscAutTecGarte
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 8:13 pm

It is time to clean out some cobwebs...
learning never stops...

FischAutoTechGarten is the full handle and it reflects my interest. It's abbreviated to fit A.net short usernames.
 
Noshow
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 8:16 pm

I like the old Boeing business style more than the inherited MDD way that pleased the stock exchange so much more. MDD only milks what is left without investing. Except for stock buybacks. They should bring back some healthy long term investments. Commercial airplanes should be one of them. Yellowstone, BWB and such.
 
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Revelation
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 8:41 pm

AirlineBob wrote:
Boeing needs a lot of things.

However, I think the thing that would get them ~75% of the way there is this: Leadership willing to invest in the long term, and not beholden to the stock price, or the quarterly earnings.

I think a lot of the things that currently bedevil Boeing can be traced to those simple concepts.

I'd love to see a CEO come out and say they're not going to be held hostage to the stock ticker. I'm not going to hold my breath though.

I agree on both counts (it's a good idea, but it'll never happen).

In essence we're saying Boeing needs to change the way it's done business for the last two decades or so, yet that would require replacing or retraining two decades of management hires rather than just promoting one guy. Then the question becomes where do you find the replacements, who does the retraining when most US b-schools preach "shareholder value", etc. Then there's the question of how do you deal with all the "captains of industry" on the BoD.

Expecting this guy to undo all the DNA that the ex-McDD and ex-GE people spread around the place is IMO not a realistic thing to ask.
Wake up to find out that you are the eyes of the world
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frmrCapCadet
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Re: New Boeing Chief Strategy Reporting to Calhoun

Fri Sep 18, 2020 9:50 pm

Boeing is competing with a company that has strong governmental support, in an economy where the company is not expected to finance most of the social safety net out of its profits, a labor force that does not aim at killing the company with it strikes*, and is suppose to make a little profit to boot. I have no major objections to that favorable economic climate. I wish the US would be pro business enough to do the same.

* European unions will announce a strike, typically it takes place a week or so later and last for a couple days. Points are made. Work resumes. There may be different laws and regulations. Anyone know?
Buffet: the airline business...has eaten up capital...like..no other (business)
 
Noshow
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Re: New Boeing Chief Strategy Reporting to Calhoun

Sat Sep 19, 2020 8:02 am

Companies and employees in Europe pay high taxes to fund their social system. And Boeing gets quite a bit of government contracts to start with. Boeings current situation is more a result of their own strategic decisions. They were not willing to move when Bombardier came up with the CSeries. So they tried to kill BD instead of replacing the 737.
The first thing to start with now is NMA. Then NSA.
 
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par13del
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Re: New Boeing Chief Strategy Reporting to Calhoun

Sat Sep 19, 2020 1:08 pm

Noshow wrote:
Companies and employees in Europe pay high taxes to fund their social system. And Boeing gets quite a bit of government contracts to start with. Boeings current situation is more a result of their own strategic decisions. They were not willing to move when Bombardier came up with the CSeries. So they tried to kill BD instead of replacing the 737.
The first thing to start with now is NMA. Then NSA.

With whose money, the higher taxes that the US Federal Government should institute to pay for higher salaries and social programs, or the money that the investors already received for their investment in Boeing via the stock buy back scheme?
Perhaps rather than giving tax breaks and deferrals when the Federal Government is encouraged to implement higher taxes for social programs they should also look at implementing a US equivalent to RLI, one cannot ignore the impact of the ability to secure low interest loans to start clean sheet designs.
 
AirlineBob
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Re: New Boeing Chief Strategy Reporting to Calhoun

Sat Sep 19, 2020 6:29 pm

par13del wrote:
Perhaps rather than giving tax breaks and deferrals when the Federal Government is encouraged to implement higher taxes for social programs they should also look at implementing a US equivalent to RLI, one cannot ignore the impact of the ability to secure low interest loans to start clean sheet designs.


RLI?

I poked around the web, but still couldn't figure out what this stands for. Something Something Investment?
 
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Revelation
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Re: New Boeing Chief Strategy Reporting to Calhoun

Sat Sep 19, 2020 6:38 pm

AirlineBob wrote:
par13del wrote:
Perhaps rather than giving tax breaks and deferrals when the Federal Government is encouraged to implement higher taxes for social programs they should also look at implementing a US equivalent to RLI, one cannot ignore the impact of the ability to secure low interest loans to start clean sheet designs.


RLI?

I poked around the web, but still couldn't figure out what this stands for. Something Something Investment?

"repayable launch investment", a politically correct term for what was once known as "launch aid".
Wake up to find out that you are the eyes of the world
The heart has its beaches, its homeland and thoughts of its own
Wake now, discover that you are the song that the morning brings
The heart has its seasons, its evenings and songs of its own
 
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keesje
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Re: New Boeing Chief Strategy Reporting to Calhoun

Sat Sep 19, 2020 11:05 pm

Reporting to the boss, is different than to the CFO. The others cannot overrule you if they don't like / agree, they have to talk to the boss. Big difference.
"Never mistake motion for action." Ernest Hemingway
 
Tan Flyr
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Re: New Boeing Chief Strategy Reporting to Calhoun

Tue Sep 22, 2020 1:38 pm

FLALEFTY wrote:
Revelation wrote:
keesje wrote:
Marc Allen has been named Chief Strategy officer. His predecessor becomes chief sustainability, reporting to the CFO.

https://www.flightglobal.com/airframers ... 22.article

Hopefully we'll see better strategic priorities and decisions 2020-2030 than we saw 2010-2020.

The guy's a Yale Law School grad working at the corporate level i.e. across defense, space and commercial.

Not sure it'll make much of a difference to what BCA does or doesn't do.

On the other hand, the 757neo and 767neo fans should find a way to turn this in to good news for them! :biggrin:


He's a lawyer who will try to map out strategies for an aerospace engineering and production company. This will not end well...

The mass-firings should be centered in Chicago and go from the top-down, including Calhoun. Then they should shutter Chicago and move the HQ back to Seattle.


I fail to understand why they even moved to a hi tax, anti- business city like Chicago in the first place. And the taxes of the State of Illinois are not much better, if at all.

IF ever there was consideration to moving HQ again, for fresh start..I'd pick a pro-business state at least and the most pro- business city/metro area I could find in it.
 
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Revelation
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Re: New Boeing Chief Strategy Reporting to Calhoun

Tue Sep 22, 2020 2:02 pm

Tan Flyr wrote:
I fail to understand why they even moved to a hi tax, anti- business city like Chicago in the first place. And the taxes of the State of Illinois are not much better, if at all.

It's not like they are making airliners, rockets or fighters in the State of Illinois. All they are making is PowerPoints, XLS, and emails.

This is the corporate level mucky-mucks. It doesn't really matter where their offices are.

The general idea was they wanted to be in a location that was not seen as being overly influenced by the various divisions of airliners (Seattle), military (St. Louis) and space (SoCal). They also felt they needed more access to Washington. They chose Chicago because they could hop on a plane from Chicago and be in any of those places quickly.

Personally I would have avoided the Chicago winters, but they didn't ask me. But it does have some great ethnic food choices.
Wake up to find out that you are the eyes of the world
The heart has its beaches, its homeland and thoughts of its own
Wake now, discover that you are the song that the morning brings
The heart has its seasons, its evenings and songs of its own

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