Boeing taps GE exec to head airplanes unit as part of services push

Boeing on Monday named a senior General Electric 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 $50b in 10 years from about $15b currently, Boeing CEO Dennis Muilenburg said. 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. "We've always said growing services is a core part of our strategy, and now you see us emphasizing and investing accordingly," Muilenburg said. Boeing tapped Kevin McAllister, 53, to lead its $66b commercial airplane business, succeeding Ray Conner, 61, effective immediately. Conner, who started as a Boeing mechanic nearly 40 years ago, will serve as vice chairman through 2017 to help with the transition, the world's biggest planemaker said.<br/>