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Boeing starts streamlining effort for military aircraft unit

The Boeing logo is seen at their headquarters in Chicago, April 24, 2013. REUTERS/Jim Young
The Boeing logo is seen at their headquarters in Chicago, April 24, 2013. REUTERS/Jim Young

NEW YORK (Reuters) - Boeing Co said on Monday it was launching a "business optimization" effort for its military aircraft division, according to an internal memo seen by Reuters and confirmed by the company.

As part of the effort, Boeing will set up engineering capability centers and production centers to streamline operations over next two years, said the memo from Shelley Lavender, president of Boeing Military Aircraft (BMA).

"We are competing in an environment where cost, quality, capability and value are all critical to both new business growth and in maintaining existing contracts," the memo said.

"BMA is working to deliver essential capabilities at prices customers are willing to pay and, in doing so, raising the bar beyond our competitors' reach."

(Reporting by Alwyn Scott; Editing by Jonathan Oatis)

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