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... 's defense budget, and is the principal customer of Boeing's Military Aircraft and Missile Systems segment.
Six Crucial Issues:
Recession. Principal factors that underlie long-term growth in air traffic are sustained economic growth in developed and emerging countries, and political stability. Other notable factors are airline industry profitability, world trade policies, government-to-government relations, environmental constraints, technological changes, and price and other competitive factors. (10-K, 2/03) This market was negatively affected by the recession and September, 11th terrorist attacks and continued to decline through 2002. The market for commercial jets is determined by the volume of passenger air travel. Boeing's market performance has reflected weaknesses in the airline industry. It should be noted, however, that Boeing enjoys an international market for its aircraft and fluctuations due to political instability are only partially experienced by markets outside the United States. The functional strategy I recommend would be to continue the longstanding effort Boeing has of signing contracts to build aircraft years before they are built. This will insure that market cycles don't negatively effect business. This is a functional Strategy.
The SARS Epidemic. According to Byron Callan of Merrill Lynch, the potential impact of SARS would extend beyond civil aircraft demand for airlines serving ...

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