Wed, Mar 03, 2010
But Labor Issues May Force The Company's Hand, CEO Says
Boeing Commercial Airline CEO Jim Albaugh says the company
would prefer to build airplanes in the Puget Sound region, with the
caveat that the preference holds only if the Machinists union
moderates its future wage demands and avoid strikes.
"This is where our people want to live. This is where we want to
be. We've had a great partnership with the people of Washington,
and I hope it continues for a long, long time," Albaugh told the
Seattle Times. However "(I)t's going to be a much more competitive
environment out there in the future. And work anyplace is not an
entitlement."
Albaugh told the paper that if Boeing wins the KC-X competition
with the Air Force that Everett will see growth from the contract.
He also said he thinks Boeing will again deliver more airplanes
than arch-rival Airbus in about two years.
Albaugh said the overriding factor in picking South Carolina for
the second Dreamliner line was the strike threat from the
Machinists Union. "(W)e can't afford to have a work stoppage every
three years. And we can't afford to continue the rate of escalation
of wages," he said. Building a new factory and hiring from an
inexperienced labor pool is far less expensive than shutting down a
production line, Albaugh added.
Boeing's James Albaugh
He also stressed that, if Boeing wins the tanker competition,
many of the structural modifications on the 767 airframes will be
done in Everett, though the specialized equipment making the
airplane a tanker will be added in Wichita.
As to Boeing's position relative to Airbus, Albaugh predicted
that when the company starts to deliver Dreamliners in quantity,
beginning in 2012, the company should regain its position as the
worlds top plane maker.
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