The Boeing Company (BA) is consolidating its North American flight and maintenance training operations in Miami. As a result of the consolidation, fight training capabilities in North America, which include 787 flight and maintenance training, will move out of the Seattle area to Miami.
Boeing intends to relocate all full-flight simulators and other devices from Seattle to Miami, starting with two 787 training suites. The consolidation comes on the heels of the company’s focus on customer commitments and its objective of meeting market demand for Boeing products, services and support.
Also, the growing need for pilot training has compelled the company to go ahead with a strategic positioning of its global training network around the world. Boeing believes that the aviation industry will need 460,000 new pilots and 601,000 new maintenance technicians in the next 20 years.
Miami is Boeing's largest commercial aviation training campus. The Miami facility is one of the largest commercial flight training campuses in the world with 20 simulator bays. The space currently has only 11 training devices with the capacity to accommodate 9 additional full-flight simulators. This consolidation will make Miami the primary flight training location for Boeing in the Americas. It is an ideal training location for customers in Latin America as well as the U.S. Customers from the Middle East and Europe would also stand to gain from the relocation.
The plan to locate 787 training in Miami was initially announced in 2008. Miami is a major center and a leader in finance, commerce, culture, and international trade. Therefore, apart from providing the best product support and services in the industry, this initiative would help the company in getting close with its customers.
As part of a long-term effort to reduce facilities and costs, Northrop Grumman Corporation (NOC) has also designated five U.S. centers of design and integration excellence a few days back. The centers will support Northrop’s Aerospace Systems business in the areas of manned aircraft, unmanned systems, and electronic attack, and integrate work from elsewhere at sites in Florida, New York, and California.
Based in Chicago, the Boeing Company is a premier jet aircraft manufacturer and one of the largest defense contractors in the U.S. The company’s customers include domestic and foreign airlines, the U.S. Department of Defense, the Department of Homeland Security, the National Aeronautics and Space Administration, other aerospace prime contractors, and certain U.S. government and commercial communications customers.
Boeing is among the best-positioned in its sector due to its balanced exposure to commercial aircraft and defense equipment. With the gradual recovery of the global economy, we believe freight and passenger traffic will improve going forward. Overall, the growth momentum will be maintained by its order backlog, planned production rate increases and a globally diversified customer base. The company presently retains a short-term Zacks Rank #2 (Buy).
Other stocks worth considering are Lockheed Martin Corporation (LMT) and Alliant Techsystems Inc. (ATK). Both these stocks also carry a Zacks Rank #2 (Buy).
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