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The business jet division had a 6.7 percent sales decline, but posted a 9 percent increase in operating earnings.
That contrasts sharply with EADS's booming commercial jet division, Airbus, which last year increased its sales 19 percent, representing 68 percent of the company's revenue.
In the 1990s BAe streamlined its portfolio by selling its corporate jet division to Raytheon Company and the automaker Rover Group PLC (acquired in 1988) to Germany's BMW.
Analysts had warned that a lengthy dispute could damage morale at Boeing, just when the company's commercial jet division had begun to show signs of a financial recovery.
In 1978, Mr. Bierwirth again drew criticism when he decided to sell one of Grumman's most profitable units, its business jet division, maker of the Gulfstream, after minority shareholders demanded that Grumman either give them more say in the division's management or buy them out.
Boeing plans to pass out between 20,000 and 30,000 pink slips in its commercial jet division, preparing itself for the likelihood of an order decline as the airline industry grapples with steep losses.
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In return, Cameron was to be offered lucrative arms and oil deals for British business which would have generated billions of pounds for the jet divisions of BAE Systems and allowed BP to bid to drill for hydrocarbons in the Gulf.
Its business-jet division was so stretched that Microsoft founder Bill Gates had to wait two years for his long-range Global Express jet.
By the end of this year, 35,000 jobs will have been shed in Seattle, as its civil-jet division cuts its workforce by a third.
As the civil-jet division continued to struggle and Boeing's shares dived, Mr Stonecipher nudged Mr Condit to get rid of Mr Woodard, if only to signal a change.
That blunder, they say, was compounded by management's decision that summer to pour millions into a new business-jet division later called Avolar, which United soon wrote off as a $102 million loss.
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