n FEATURE STORY Biggerthan its size 28 October 2007 BOEING FRONTIERS n FEATURE STORY BY MARIBETH BRUNO he “golden age” of the low-lying part of Europe now known as the Netherlands arrived in the 17th century. While fight- Ting wars and signing treaties with their bigger neighbors, the Dutch used their logistical genius to build a trading empire that stretched from Asia to the Americas. Meanwhile, engineers inno- The Netherlands may be vated increasingly ambitious methods to save fields from flooding and to claim dry land from the sea. geographically minuskuul, In the 21st century, the Netherlands’ internationalism, inno- but this innovative, vation and position at the forefront of environmental issues have proved to be as resilient as the Dutch themselves. These traits now than its strengthen the relationships between Boeing’s commercial, de- environmentally conscious fense and research divisions and the company’s Dutch customers country has gigantisch and supplier partners—with tangible benefits for all. importance to Boeing Royal heritage The earliest sale to the Netherlands in the company’s history size was probably the DC-2. In October 1934—15 years after starting operations—KLM Royal Dutch Airlines entered one of its DC-2s in a race from London to Melbourne, Australia. The DC-2’s second-place finish behind a racing airplane—while making all its scheduled stops—increased its popularity around the world. KLM remains a valuable customer and partner for Boeing to- day. It operates MD-11s; Classic and Next-Generation 737s; and 747s in all-passenger, Combi and Freighter configurations, and has The Netherlands’ iconic windmills and tulips are just two examples of how the country phased out its 767s with the addition of 777-200ERs. In 2004, KLM has managed its environment for centuries. merged with Air France to form AIR FRANCE-KLM Group. The While flood control remains a major concern, group in June made its first joint announcement for new airplane the population is also calling for reductions orders—nine 777-300ERs and seven 737-700s. in carbon-dioxide emissions and noise. “KLM is a long-term customer that, while it naturally has an affinity with European companies, also has strong ties to U.S. in- dustry,” said Tom VanderHoeven, Boeing Commercial Airplanes director, European Sales. KLM runs a subsidiary airline called KLM Cityhopper and the Dutch unit of low-cost, all-737 operator transavia.com. It also owns 50 percent of the shares of European carrier Martinair. The airline’s home base is Amsterdam Airport Schiphol, where in the first half of 2007, 42 percent of the 22.4 million passengers served were between flights. “Transit traffic has lower yields [airfare divided by revenue pas- senger miles], so to succeed you need to keep costs down and of- fer more connections at higher frequencies,” said Jan Witsenboer, KLM senior vice president of Corporate Procurement and Fleet Development. Expanding and updating its fleet with airplanes that are fuel- efficient and can fly long distances is part of KLM’s response to this challenge. For instance, it has increased its service to Los Angeles and Toronto and launched nonstop service to Lima, Peru, with its new 777s. “Boeing builds good aircraft that match our re- quirements,” said Witsenboer. These requirements increasingly involve environmental con- cerns—chiefly fuel consumption, carbon dioxide emissions and noise. By spring 2008, all of KLM’s Next-Generation 737s will have Blended Winglets, which enhance performance and reduce carbon dioxide emissions. The airline also partners with Boeing, E G A Schiphol and air traffic control authority LVNL on ways to reduce M I M environmental impact through advanced air traffic management CO . (see story on Page 33). OTO H One of Boeing’s environmentally progressive solutions is the 787 Dreamliner. Asked if he was considering the 787, Witsenboer ISTOCKP replied, “Yes—who’s not?” He noted that KLM regularly flies BOEING FRONTIERS October 2007 29 n FEATURE STORY 747 Combi aircraft—280 seats, with seven pallets in the rear—to military personnel—restricts deployments to a modest number, it reduce unit costs. Using a 230-seat 787-8 on the same route, he is “lean and mean,” said van Dijk. “A few years ago, they reorga- said, it becomes “the front of a Combi,” flying the same distance nized and reduced their numbers in order to be able to invest in but with better seat-mile costs and the ability to economically open high-quality, flexible, and fully deployable forces and equipment. new routes in Asia. And Boeing was and still is part of that.” “The Netherlands is one of the most densely populated areas in Boeing products procured by the Netherlands Ministry of the world, with an expanding need for air transport and for signs of Defence include 29 AH-64D Apache attack and reconnaissance environmental innovation and improvement,” said VanderHoeven. helicopters (for which it was the first non-U.S. customer); 11 “If we can work together to find solutions, those products could CH-47D Chinook transport helicopters; two KDC-10 tanker/trans- then be accepted in other areas of the world that will soon be in the port aircraft; one DC-10 passenger/freight aircraft; the RGM-84D same situation.” Harpoon missile; the Joint Helmet Mounted Cueing System for F-16 pilots; and Joint Direct Attack Munition Precision Guidance Advanced ally Kits. The country is also part of a group of nations supporting the Dutch foreign policy focuses on the European Union, the Unit- NATO Airborne Warning and Control System program. ed Nations and NATO. Therefore, the Netherlands “recognizes its In February, the ministry’s Defence Materiel Organization and responsibility for peacekeeping missions, and is willing to take Boeing signed a direct commercial sales agreement for six new- the lead in coalition with other countries,” said Robert van Dijk, build CH-47F (NL) Chinooks to be delivered in 2009-2010—the Boeing Integrated Defense Systems director of Business Develop- first sale of that model outside the United States. ment, Benelux (Belgium, Netherlands, Luxembourg). “The Dutch use their Chinooks not just to fly from A to B, but While the size of the Dutch force—a little more than 50,000 also for special forces deployment,” said van Dijk. “So they oper- ate a special configuration that’s more extensively equipped and weather-independent.” Boeing products in use by the Dutch The Netherlands has some 2,000 troops deployed overseas, of armed forces which 1,600 are stationed in Afghanistan as part of the NATO-led include the AH-64D International Security Assistance Force. Apache attack and “We have a very modern glass cockpit that some countries reconnaissance are jealous of,” said Lt. Col. Bart Hoitink, commander of Royal helicopter (top) and Netherlands Air Force Squadron 298, which has three D-series CH-47D Chinook transport helicopter. Chinooks in Afghanistan, supported by 30 troops. “With it, we The Netherlands can foresee parts of the flight … and the Chinook will tell us if we earlier this year can do the mission. We also have capabilities that came from the became the first Apache for protection against missiles and radar. non-U.S. customer “All that will be brought forward into the CH-47Fs,” Hoitink for the new CH-47F continued, “plus we’re focused on adding growth potential, expan- with an order for six of the aircraft. sion capabilities.” “Defence is a proactive customer, and they pick what they need,” said van Dijk. “In negotiations such as the NATO plan to purchase C-17A airlifters, they can have a lot of influence with other countries.” Partnering with KLM Partnerships are a large and successful element of the Boeing- KLM relationship. Their joint Spares Distribution Center near Schiphol can meet requests for 35,000 types of parts in stock, usu- ally in less than 24 hours. The same facility houses the Next-Generation 737 Component Services Program, which the two companies announced in April 2005. Boeing and Air France formed a CSP for the 777 in Paris in late 2003. Airlines in either of the programs gain access to a pool of high-value parts, reducing their inventory and repair costs by up to 30 percent. Boeing manages the repair of Boeing-proprietary parts, and KLM and Air France handle the rest. OTO H “One of our early Lean initiatives was to bring all our inven- P tory and people together,” said Paul Morgen, Boeing Commercial ENCE F Aviation Services director of Component Services. “Each of us E F D has an equal value of inventory shared into the program, and both O Boeing and KLM people work at the same facility to improve com- INISTRY munication and share best practices.” M S The 737 and 777 CSPs remain mostly separate despite the D Air France–KLM merger, but “one synergy is that when we plan ERLAN H a sales campaign, CAS Sales gets together with both KLM and NET 30 October 2007 BOEING FRONTIERS n FEATURE STORY KLM operates several Boeing jetliner models, including the 777 (below, at Amsterdam Airport Schiphol). The airline was the launch customer for the Boeing 747-200 and the Electronic Flight Bag, and the European launch customer for the 737-900. M KL OR F OTOS H P CAPITAL Air France Sales and we develop an approach together,” said Morgen. “Whoever we all decide has the best relationship with the The Netherlands at a glance customer takes the lead.” Location: Western Europe, bordering the North Sea, between Building business relationships Belgium and Germany Boeing’s defense contracts also provide work for Dutch indus- Area: 16,033 square miles (41,525 square kilometers), about try, due to military offset requirements that say 100 percent of a double the size of the U.S.