The Boeing Company announced
its strong support for recommendations released today in Washington, D.C., by
the Commission on the Future of the U.S. Aerospace Industry.

“The Aerospace Commission’s report calls for bold action on a number of
fronts to help preserve America’s global leadership in aviation and space,”
Boeing Chairman and CEO Phil Condit said. “It becomes a natural starting
point for the Administration and the Congress as they look to stimulate an
industry key to helping ensure global security and economic growth.”

Condit said the commission’s work spotlights the critical importance of
the aerospace industry to U.S. efforts for combating terrorism and other
security challenges. He also noted that the aerospace industry plays a
crucial role in the global economy and in economic development in all 50 U.S.
states. An economic impact analysis published separately by the commission
showed that the industry employed more than two million workers in 2001, with
an annual average wage of $47,700.

Boeing is a prime example of this economic impact. It is the world’s
leading aerospace company with major operations in 26 states, suppliers in all
50 states and customers in 145 countries. Boeing employs more than 167,000
people in more than 60 countries and is the nation’s largest exporter with
revenues of $58 billion in 2001.

Boeing singled out several recommendations for priority action:

* Air Traffic Management — A new multi-agency government initiative is needed to significantly enhance the security, safety and efficiency of the nation’s air traffic management system and accommodate future economic growth. A recent highly respected study concluded the cost of air transport delays would approach $170 billion over the next 10 years.

* Global Markets — A rules-based trading system is critical to the global economy. Stable trading relationships promote security and prosperity, translating directly into greater travel among the flying public.

* Export Reform — As the premier U.S. exporter, Boeing supports the export reform measures outlined in the report aimed at streamlining the current system, while protecting national security and critical technologies.

* Investing in the Future — The Commission Report is focused on America’s global aerospace leadership in the 21st Century. It recognizes the critical importance of sustained investments in research and technology and supporting infrastructure to reach new frontiers.

* Workforce — Generating the necessary world-class American aerospace workforce demands a national aerospace vision expressed by this nation’s elected leadership. Such a vision would stimulate education and be crucial for developing a skilled and determined workforce, as well as an informed American electorate in the hi-tech Twenty-First Century.

* Industrial Base — A recurring theme in the report is the importance of the defense and space industrial base. Several areas of concern are identified, including space launch (specifically propulsion) and manned tactical aircraft, which merit further policy study and action.

The report, and the additional views of Commissioner John Douglass,
recognized that charges and fees, including security-related costs, adversely
affect the airline industry’s economic health.

“While it was not part of the commission’s charter to address the airline
financial crisis following the terrorist attacks on September 11, that crisis
clearly is having a major impact on much of the aerospace industry and the
overall U.S. economy,” Condit said. All of us must work together to find
solutions to the challenges facing America’s aviation system.”