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Sat, Dec 06, 2003

7E7 To Be Built In Everett, Washington?

Local Paper Quotes Insider Close To Executive Team

It's taken eight months, but the Dreamliner appears to have finally found a home: Everett (WA).

The Seattle Times quotes an anonymous source close to the team who says the recommendation will be finalized at the December 15th meeting of Boeing's board of directors.

Officially, the Boeing line is, "No decision has been made and no decision will be made until the results of our site evaluation are fully vetted with our board of directors." That word from Thomas Downey, Boeing Commercial Aircraft VP of communications.

The Seattle Time's insider says Everett was more expensive than some of the other communities vying for the 7E7 assembly plant. The other three finalists were listed as Kinston (NC), Charleston (SC) and Mobile (AL). But the execs picked Everett -- even though it's more expensive than the other sites. They reportedly included:

  • Moses Lake (WA)
  • Tulsa (OK)
  • Stennis (MS)
  • Jacksonville (FL)
  • Savannah (GA)
  • Harlingen (TX)
  • Millington (TN)
  • Blytheville (AR)

Why Everett, then, given the fact that costs are so much higher? Because, according to the Times, Washington Governor Gary Locke kicked in a $3 billion tax incentive. With that in hand, the extra cost of keeping Boeing's jetliner manufacturing operation in Everett is only about $300 million over 20 years. Compare that to the Dreamliner's development costs -- as high as $10 billion -- and that's a drop in the bucket.

But the Times reports there are other considerations. For instance, morale at Boeing's other operations near its former home in the Puget Sound area. The company laid off 26,000 workers in the Seattle area over the past two years. The company needs the cooperation of those who are left. That could cost the aircraft manufacturing side of Boeing a huge strike by union machinists.

And, as Boeing reels from a trio of defense-related scandals, it has a wary eye on the nation's capitol. Washington's Congressional delegation has staunchly defended and even lobbied for Boeing on projects like the Supertanker. The Pentagon this week put that project on hold while it investigates a former USAF deputy secretary-turned Boeing executive who might have helped Boeing win the KC-135 replacement tanker contract, worth an estimated $18 billion.

But Boeing, which shopped cities all over the country for the Dreamliner's assembly site, doesn't appear ready to set down roots just yet. There's always the possibility that another locale might just up the ante. And, if Boeing decides down the road it doesn't like Everett after all, the company says it'll consider picking up all its toys and moving on.

FMI: www.boeing

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