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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Friday, June 19, 2009 New signals from Boeing that Everett may lose second 787 line The first 787 still is scheduled to fly by the end of the month. Meanwhile, talk of a 777 tanker is heating up. By Michelle Dunlop, Herald Writer EVERETT -- Three questions keep Puget Sound region aerospace workers and local government leaders awake at night. When will Boeing's 787 fly? Will Northrop Grumman and EADS defeat Boeing in the U.S. Air Force tanker contest? And is Boeing serious about putting a second 787 final assembly line elsewhere? We should have the answer to question No. 1 within the next 12 days -- that is, if Boeing meets its latest schedule and puts the delayed Dreamliner in the skies before June 30. The answer to question No. 2 got more interesting this week when Boeing's Jim Albaugh revealed that the company may offer the Air Force a tanker version of its commercial 777 jet, built in Everett. The 777 is closer in size to the offering of Boeing's competitors, Northrop Grumman and EADS, than is Boeing's previous pitch, its KC-767. Defense Secretary Robert Gates told reporters Thursday that he still expects the contest to begin again in late summer. As for a second production line for the 787, Boeing's Pat Shanahan this week fanned fears that the company will look outside the Puget Sound region. In an interview with Flight Global's Jon Ostrower on Wednesday, Shanahan indicated the company could be getting closer to making a decision about the second line. Washington state gave out $3.2 billion in tax incentives to the aerospace community in an effort to lure Boeing into picking Everett for the first 787 final assembly line. But both Boeing and analysts have hinted the Puget Sound region may lose out on future Boeing projects, like a second line. Avoiding labor strikes seems to be a major factor driving Boeing's choice. Shanahan told Flight Global that Boeing has "lots of geographical options ... the real options are around 'how do you secure assurance of delivery?' And I think that's been a discussion topic around some of the disruption we've realized ... at Boeing." Boeing Machinists went on strike for 57 days last fall. Although analysts generally split the blame between Boeing and the union, at least one Boeing customer couldn't care less who is to blame. The Machinists strike only shoulders a fraction of the blame for the nearly two-year delay to the 787 program. However, the strike did push back the delivery of a 777 to V Australia, angering Virgin Group's Sir Richard Branson. When Boeing finally delivered the 777 in February, Branson took the occasion to lash out at the company and the Machinists. "It really does make us think, 'Do we want to take a risk with Boeing in the future?'" Branson said. Local business organizations have identified Texas, South Carolina and Alabama as potential competitors for the second 787 line. Unions have less influence in those states than they do in Washington. Tom Wroblewski, the Machinists' president, says his union members are focused on proving they're the most qualified workers to build Boeing Co. jets. The Machinists pitched in to help out when Boeing's global suppliers stumbled on the 787, shipping incomplete structures to Everett for final assembly. "We've got to make sure this plane is up and running," Wroblewski said. With the strike behind them and the 787's first flight in sight, the Machinists are hoping to strike up a more positive tone to their relationship with Boeing. After meeting with Boeing executives in Chicago earlier this year, Wroblewski said he believes there's a "strong shared commitment" to improving the relationship between the company and the union. "We're doing everything we can to make this first line successful to show this is where they should put a second line," Wroblewski said. Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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