GOTEBORG, Sweden, June 15, 2003 (PRIMEZONE) -- The Boeing Company (NYSE:BA) and Volvo Aero Services have extended their Marketing and Distribution Agreement through December 2009. Under this Agreement, Volvo Aero Services will continue to market and sell Boeing Surplus Inventory for commercial aircraft in addition to developing new joint customer offerings.
Mark Owen, Vice President of Spares for Commercial Aviation Services at The Boeing Company, said, "Boeing and Volvo Aero have had an excellent working relationship since the first contract was signed in 1999, and we look forward to continuing this partnership through 2009. The renewal of this agreement allows us to continue to reduce our inventory, generate additional revenue by leveraging Volvo Aero Services sales team to market these parts, and allow us to make them more readily available to our customers. At the same time, we'll be able to focus Boeing resources on our main spare parts operation."
Boeing and Volvo Aero Services will continue to manage the existing programs that they have jointly developed from the initial relationship. It is further agreed that they will jointly develop and establish new spares related initiatives. This will provide a greater array of support offerings designed to further enhance the needs of their airline customers as well as services provided by MROs and repair stations around the globe.
Claes Malmros, President of Volvo Aero Services, said, "Through the extension of this relationship, Volvo Aero and Boeing have demonstrated the ability to rapidly adapt to the changing aviation environment by continuing to provide innovative and value added services to our customers and partners."
Volvo Aero Services will use its existing sales force to market the expanded service offerings as well as to continue its distribution of Boeing surplus parts to aircraft operators and maintenance and repair stations worldwide.
June 15, 2003
For further information, please contact:
Ann-Sophie Berner, Director of Communications, Volvo Aero Services, phone +1 561-809-9600
Ed McGinn, Senior Manager, Communications, Boeing Commercial Airplanes, phone +1 206-766-2161
Facts:
Commercial Aviation Services (CAS) is a business unit of Boeing Commercial Airplanes. CAS offers a wide range of products, services and integrated solutions to fleet operators. Capabilities of the organization include global customer support, spares and logistics support, maintenance and engineering services, fleet enhancements and modifications, and flight operations support.
Additional information on CAS and The Boeing Company is available on the Internet at www.boeing.com.
Volvo Aero Services LP is the aviation service provider within Volvo Aero, a US$1-billion company with broad operations in the aerospace industry.
Volvo Aero, a subsidiary in the Volvo Group, develops and manufactures components for commercial aero engines and rocket engines with a high technology content as a partner to the world's leading manufacturers in this segment. Volvo Aero also develops, manufactures and services military engines. In its service operations, the company offers a broad range of products, including sale of spare parts for aircraft engines and aircraft, sale and leasing of aircraft engines and aircraft, and overhaul and repair of aircraft engines. Business Area Land & Marine Gas Turbines develops, produces and provides power generation and propulsion applications with gas turbine engines as well as after-market services. Additional information on the company is available on the Internet at www.volvoaero.com.
The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 71,000 people, has production facilities in 25 countries and sells their products in more than 185 markets. Annual sales of the Volvo Group amount to 18 billion euro. The Volvo Group is a publicly-held company headquarterd in Goteborg, Sweden. Volvo shares are listed on the stock exchanges in Stockholm, London, Brussels and Frankfurt and on NASDAQ in the US.
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