The Suspense is Over: Boeing to acquire Jeppesen

The Suspense is Over: Boeing to acquire Jeppesen
by Rich Lane

SEPTEMBER 2000

After several years of high level negotiations and proposals, long-time Jeppesen Sanderson, Inc., the world's principal provider of aviation flight information, based near Centennial Airport in Denver, was recently sold to Boeing Aircraft Corporation for $1.5 billion. A logical match, Boeing and Jeppesen can now provide their worldwide customers in the aircraft industry with both manufacturing (Boeing) and services and management (Jeppesen). No major schism or disruption in Jeppesen's normal day-to-day operations is anticipated or expected.

To pilots throughout the world, the word Jeppesen is synonymous with flying. Both private and commercial pilots always have their Jeppesen route maps within arm's reach if not on their laps while flying. And the textbook, or bible, for pilots in training is Jeppesen's flight training materials.

Begun in the 1930s by Captain Elrey Jeppesen plotting his own route maps into a little black book for his own future reference, today the company is worldwide. Fourteen hundred people make up the workforce in the U.S., the United Kingdom, Germany, China, and Australia. Approximately 900 work at the world headquarters at 55 Inverness Drive East, near Centennial Airport.

From Captain Jeppesen's personal little black book of flight routes, the company has evolved into a multimillion dollar business that produces aviation information such as VFR and GPS charts, GPS/Navdata services, computerized flight planning, navigation software, pilot training materials, test preparation materials, reference manuals, up-to-the-minute global weather conditions, pilot supplies, and maintenance training products.

Jeppesen also provides marine maps and navigation software for real-time navigation via GPS. Jeppesen's marine maps include coastlines, world ports, cities, lakes, rivers, fathom lines, tides, and navigation aids for maneuvering across bodies of water.

"There isn't a square inch of the globe that Jeppesen doesn't have in its database," says Horst Bergmann, CEO. Although "not a pilot anymore," in his own words, Bergmann served in the German Air Force from 1957 to 1963 in flight operations and navigation. Upon leaving the German Air Force in 1963, Bergmann hired on with Jeppesen in Frankfurt, the base of international operations. The acquisition of Jeppesen by Boeing creates a new plateau, or a "new frontier," as Boeing Chairman, Phil Condit, said in his remarks to employees at a gathering of company employees recently to discuss the Boeing/Jeppesen arrangement.

"Services, with a capital S," elaborates Bergmann, "because there are higher margins and a higher growth potential in the services industry as compared to simply manufacturing. New products and new services for both existing and new customers is where the growth potential exists." An example is Jeppesen's move into marine navigation.

Another new venture for Jeppesen is into the telecommunications industry. For example, to erect a tower for cellular telephone use, or a TV antenna, the user must procure FCC and FAA approval. Jeppesen already has the information that a potential user will need. "For example," says Bergmann, "we have the overlying airspace information for approaches to airports so that we can show the potential user if they will be infringing upon that airspace. And, then, if a tower is erected, we can update our charts with that tower obstruction information for pilots."

When asked what's the latest and greatest from Jeppesen, Bergmann mentioned "Jepp View," which is an electronic airway manual service on CD-ROM. Jepp View displays and prints Jeppesen charts from a PC, using CD-ROM technology to provide quick and easy access to flight charts and other operational information in a variety of geographical coverages. Subscribers receive an updated CD-ROM every two weeks. But paper maps are not and will not become pass�; afterall, any discerning pilot is still going to want his or her paper flight charts readily handy. So, Jeppesen has gone from little black book to CD-ROM.

Considering that Boeing and Jeppesen both cater to the same customers, this acquisition should prove to be ideal. The aviation manufacturing aspect of Boeing, and the aviation services aspect of Jeppesen is a natural combination that will provide a standard of excellence for both the general aviation private pilot and commercial and airline pilots throughout the world. It's a win/win situation.

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