Strike-Hit Boeing Gets $2.7-Billion Northwest Jet Order

Northwest Airlines today announced a $2.7-billion order for Boeing jets in a deal that could involve 90 planes and reach $5.2 billion if the airline exercises all its purchase options.

The order was for six Boeing 747-400s, the world’s largest passenger jet, and 40 757-200s, a shorter-range, highly fuel-efficient twin jet.

In addition to those firm orders, Northwest took options on four additional 747-400s and another 40 757-200s.

Chris Longridge, vice president of sales at Boeing Commercial Airplanes, said the show of confidence in Boeing, which has been hit with a strike by production workers, was appreciated.

“Boeing is happy with the good relationship our companies have enjoyed over the years, and we look forward to working closely with Northwest’s new management to further strengthen those ties,” Longridge said.

The planes, to be delivered from late 1993 through 1998, will be powered by Pratt & Whitney engines.

Striking Boeing workers, who had heard reports of Northwest’s impending order, said the news bolstered their contention that Boeing can afford a better wage and benefit offer.

“It doesn’t change anything,” said Matt Bates of the International Assn. of Machinists and Aerospace Workers. “When you’ve got an $80-billion backlog . . . it just underscores our position.”

Striking machinists say five consecutive years of record orders for the world’s largest aircraft manufacturer should result in employees getting a bigger chunk of the gains.

The company’s order backlog stretches into the late 1990s. Orders before the walkout amounted to 736 jets worth $38.5 billion this year.

The Northwest order was not the first placed during the strike by the machinists, who represent 57,800 Boeing workers.

Cathay Pacific Airways Ltd. of Hong Kong said this week that it has placed orders for two Boeing 747-400 freighters and secured options for two additional models, in a transaction valued at about $600 million.

Last Friday company officials announced an order by Evergreen Airways Corp. of Taiwan for four 747-400s and two extended-range 767-300ERs and options for a like number of the same planes worth as much as $1.93 billion.

Four planes have been delivered since the strike began Oct. 4.

No talks had been scheduled, federal mediator Doug Hammond said Wednesday.

Boeing’s three-year offer to the machinists featured wage hikes of 4%, 3% and 3%, bonuses of 8% of gross pay this year and 3% in 1990, a cost-of-living clause to virtually match inflation, a reduction in mandatory overtime and increases in some benefits.

Another 28,000 Boeing workers start contract talks Monday. They are members of the company’s second-largest union, the Seattle Professional Engineering Employees Assn.

Dan Mahoney, general counsel for Boeing, predicted the talks covering engineers and technical workers would have little effect on or be much affected by the machinists’ strike. He said the two unions coordinated strategies in recent years, but this year the machinists decided not to.