US based Boeing, a key player in the global aerospace and defence industry, is navigating through a period of significant challenges but remains confident about its future, particularly in India’s growing defence sector.
Torbjorn ‘Turbo’ Sjogren, Vice President and General Manager of Government Services at Boeing Global Services, in an exclusive conversation with FinancialExpress.com expressed cautious optimism for the company’s prospects despite a difficult year in 2024, which included leadership transitions and operational setbacks.
Turbulent Year
Boeing’s performance in 2024 was notably impacted by internal restructuring, a new leadership team, and a significant strike that disrupted its operations. As Sjogren reflected, the company underwent a difficult year, especially in its defence sector. “Last year was a tough year for us,” Turbo stated. “We have a new CEO, new leadership, and several development challenges with our defence programs. But we have taken steps, especially in our culture, leadership, and operations, to move in a more positive direction.”
The company had to secure significant funds to stay afloat, and despite the turbulence, Boeing’s stock price has risen, signaling recovery. Sjogren credits the changes in leadership and the company’s renewed focus on accountability and culture for the optimism. “We are bullish about our future. The defence side of the business is still facing some challenges, but we have made great progress,” he added during his conversation with FinancialExpress.com.
India’s Growing Importance in Boeing’s Global Strategy
India remains a key focus for Boeing, both in the commercial and defence sectors. Sjogren highlighted the continued interest in India’s defence acquisitions, especially in areas such as the P-8I maritime patrol aircraft, Apache attack helicopters, and Chinook heavy-lift helicopters. Additionally, the Apache helicopters still have some pending deliveries, said Turbo, signaling Boeing’s ongoing commitment to fulfilling India’s defence requirements.
Offset Commitments
Boeing has also underlined its commitment to India’s “Aatmanirbhar Bharat” initiative, which aims to strengthen local defence capabilities and boost self-reliance. The company has already established strong partnerships with Indian suppliers, including Rossell Techsys and Air Works, in its drive to deepen its engagement with the local defence ecosystem. “We are fully committed to our offset obligations in India,” Turbo reiterated. “We have been working with local SMEs and other partners to build a more sustainable supply chain.”
One of Boeing’s key offerings in India’s defence sector is its Performance-Based Logistics (PBL) solutions, designed to provide long-term, reliable support for platforms like the Chinook and Apache helicopters, as well as the P-8I aircraft. Sjogren highlighted the critical importance of these services to ensure operational readiness and affordability. “We have seen great success with the C-17 PBL program, and we believe India can enjoy the same benefits with the Apaches, Chinooks and P-8s. These long-term contracts will allow us to reinvest in the Indian supply chain, ensuring the sustainability of operations for the Indian military,” he added.
Boeing’s efforts to expand its footprint in India include not only high-end platforms but also strengthening its service operations. The company is aiming to increase local capabilities, such as in maintenance, repair, and overhaul (MRO), through collaborations with entities like Air India Engineering Services Ltd. (AIESL) and Air Works. Sjogren noted that these partnerships are vital for Boeing’s continued success in the region, providing a comprehensive suite of services to the Indian armed forces.
Challenges and Setbacks in 2024
The 2024 reduction in Boeing’s workforce also had its impact in India, creating some uncertainty about the company’s long-term commitment to the region. Despite this, Sjogren expressed confidence in the ongoing support of Boeing’s Indian customers. “It was a tough year for us in 2024, but we have seen our customers rally behind us,” said Turbo. “They want us to be successful because they rely on our products for their own missions. The encouragement we have received from our customers has been a bright spot in an otherwise challenging year.”
However, he also acknowledged that some of the company’s setbacks, including a reduced workforce and operational delays, had caused concerns among customers. “We had to reshape our business, but the support we received from our customers was a great motivator to push forward,” he said.
India’s Role in Boeing’s Growth
Looking to the future, Boeing is optimistic about its role in India’s defence sector, with Sjogren emphasizing the strategic importance of the country. “We don’t just think of India as a market; we think of it as a capability,” he said.
Turbo also expressed confidence in the growing defence cooperation between India and the US., with both countries focusing on shared security challenges in the region. “India faces many of the same strategic challenges as the US,” he noted. Adding, “This creates a strong foundation for further defence collaboration, and we see significant opportunities ahead.”