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Boeing executive flies to new pastures

2014-03-20 13:09 China Daily Web Editor: qindexing
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The Boeing Co's aircraft model showcased at an international airshow in Beijing. Boeing delivered 168 aircraft to China in 2013. Zou Hong / China Daily

The Boeing Co's aircraft model showcased at an international airshow in Beijing. Boeing delivered 168 aircraft to China in 2013. Zou Hong / China Daily

Bertrand-Marc Allen, for the past three years China president of The Boeing Co, settled into a new and significant position back in Seattle on March 14.

Thirty-six months ago, it was a surprise that the then 38-year-old was called to lead one of the US airplane manufacturer's key markets, but his promotion after completing his term of office in China seems a natural move.

The Chinese market is vital for Boeing because it is already the second-largest market for the airplane builder - and will become the largest before the end of this decade.

Boeing was clear about the company's expectations of the regional president. "The Chinese market is as important, and eventually may well be even more important, than the US market. The people who will lead our company in the future have to have personal experience in China," Jim McNerny, chief executive officer, said in an interview.

Allen's new position is president of Boeing Capital Corp, which is one of Boeing's three major divisions. It is concerned with helping clients find financing from capital markets and also leasing aircraft to them.

The new position was devised by McNerny three years ago.

"If he continues to do well, he will be part of the senior leadership of the company," McNerny said then.

Allen said he focuses on the present rather than future possibilities. He was still fully hands on in charge of Boeing's development in China until he left, including government relations and industrial cooperation.

"I think about life literally one step at a time, one day at a time," said the law school graduate.

As then president of Boeing China, Allen said his priority was the acceleration of the company's partnerships with China, including the authorities, clients and the whole aviation industry.

During the past three years, Boeing announced cooperation programs with China - and more will be announced over the course of 2014, he added.

A significant one is the Boeing-COMAC Aviation Energy Conservation and Emissions Reductions Technology Center, which was launched in August 2012 in Beijing. It is working on several projects, such as bio-fuel and air traffic control.

"I think those partnerships are really important because through them we work with China on safety, capacity and efficiency," Allen said.

Chinese manufacturers also play an important role in Boeing's global supply chain.

Xi'an Aircraft Industry Co Ltd became the first Chinese supplier of the Boeing 737 Max to produce inboard flaps in October 2013.

Airbus SAS assigned Eric Chen, an ethnic Chinese Frenchman, as president of Airbus China in 2013. He was responsible for the European aircraft manufacturer's sales in China for many years.

The priorities of the two companies' presidents in China - Allen and Chen - are different, some business insiders said, indicating they had different management methods.

"Airbus China can make some decisions on purchasing negotiations, while Boeing China's staff must report to their headquarters, or at least the regional headquarter for Asia," said a manager from a domestic airline who has previously worked with both companies.

Allen focused his attention on building up good relationships with the Chinese, he said.

"I see it as Boeing's emphasis on the China market, because the relationship is not directly related to sales numbers," he added.

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