Boeing Co on Monday named a senior General Electric Co executive to head its commercial airplanes division and announced a new services unit, in moves to capture more of the profitable market for parts and repairs after a jet is sold. The changes are “a big and important step” toward Boeing's goal of increasing annual services revenue to about $50 billion in 10 years from about $15 billion currently, Boeing Chief Executive Officer Dennis Muilenburg said on a call with journalists. The changes do not alter plans for developing aircraft, but put a new “emphasis on generating life-cycle value,” Muilenburg said, referring to building an aircraft with an eye to gaining revenue from servicing the plane during its decades-long life.
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Boeing taps GE exec to head airplanes unit as part of services push