Updated Single Aisle Jetliner May Not Be Build In Renton, WA

The re-engined Boeing 737 promised as part of a massive order with American Airlines will not necessarily be built in Renton, WA, according to a statement by Boeing Chief Executive James McNerney last week. In fact, the executive said it might not even be built in the Puget Sound region.

Boeing CEO James McNerney

The Seattle Times reports that, in a briefing on a report showing strong second-quarter earnings, McNerney said that "We haven't made the final decision about where we're going to produce the re-engined airplane." He said that major investments would be needed in Renton to boost production beyond rates which are already planned to increase from 31 to 42 planes per month by the latter part of 2014. "Until we sort that all out, we can't confirm where we're going to put it precisely," he said during a conference call.

In a statement released by Boeing shortly after the conference call, the company said McNerney's remarks "stand as delivered. While Renton, WA, logically would be our first location considered, no decision has been made, nor would one be made at this point in the program. The decision on where to build the airplane will be made in due course as we move through the process of launching the airplane and evaluating production requirements."

The airframe of the workhorse single-aisle airliner will have to be slightly modified to accommodate the more fuel-efficient engines planned for the aircraft. While McNerney said Renton was not out of the running, he mentioned the new Charleston, SC plant built for assembly of the Dreamliner as a possible location for the increased 737 work. The final choice would "depend as we studied it how competitive they are as compared to Renton or compared to another site."

The paper quoted two Boeing public relations executives as saying that jobs were safe in Renton, and that McNerney "didn't intend to signal that anything would move out of Puget Sound."  In his statement, McNerney said those executive has spoken out of turn, and that their statements "were neither accurate nor representative of the company’s or BCA’s position."

Currently, 737 parts made all over the world eventually wind up in Renton, WA, for final assembly. While the capacity there will accommodate the planned 42 aircraft per month, Boeing says it could raise production rates to as high as 60 airplanes per month by the end of the decade. An option under discussion would be to move assembly of the 737-based P-8 Poseidon to Boeing Field to make room for additional civilian airliners to be build at Renton. But "(a)fter 42 per month, we do run into some challenges if Renton were the choice," McNerney said. "We have to study that and figure it out."

FMI: www.boeing.com