Boeing Team Reportedly Decides on Site for 7E7
A Boeing Co. executive team has concluded that the 7E7 Dreamliner commercial jet should be assembled in Everett, Wash., according to a newspaper report Friday.
Everett, where Boeing builds its entire wide-body line of 747s, 767s and 777s, was chosen over Kinston, N.C.; Charleston, S.C.; and Mobile, Ala., the Seattle Times reported, citing an unidentified insider familiar with the team and its eight-month nationwide search.
“No decision [on where to assemble the plane] has been made, and no decision will be made until the results of our site evaluation are fully vetted with our board of directors,” said Thomas Downey, vice president of communications for Boeing Commercial Airplanes.
According to the article, the executive team’s evaluation was prepared for a Dec. 15 board meeting at corporate headquarters in Chicago and for review by the company’s new chief executive, Harry C. Stonecipher, who visited Seattle on Wednesday.
Stonecipher’s visit came soon after the resignation of Philip M. Condit as CEO amid concern over the methods the company used to secure a lucrative Pentagon contract for Air Force tankers using the 767 airframe.
Assembling the 7E7 in Everett, about 25 miles north of Seattle, would save thousands of jobs in the Puget Sound area, although the number of direct Boeing jobs would be relatively small because more work is being subcontracted.
In an analysis of taxes, transportation, facilities, equipment and labor, Everett had higher costs than the other sites in every category except facilities, the newspaper said. But Everett was competitive because of a $3.2-billion state incentive package.
The source told the paper that the assessment team also was concerned about the effect on morale on the company’s Puget Sound workforce, which has been cut by 26,000 since 2001.
A third factor, the article said, was the state’s congressional delegation, which has provided crucial support for Boeing on several fronts, including the $18-billion tanker deal.
Boeing shares Friday fell $1.11 to $38 on the New York Stock Exchange.
