Pentagon on KC-46 tanker; Boeing Charleston bonuses; engineers vs. ‘bean counters’

Yesterday, Air Force officials said they’ll fly Boeing’s new KC-46A tanker more than initially planned, driving up operating costs over the life of the tanker fleet.

Today, the Air Force says it may have to restructure its contract with Boeing if automatic budget cuts, or sequestration, take place (for more on this see Scott Hamilton’s Leeham Co. blog).

Boeing workers in South Carolina will get their first payout from the company’s employee incentive plan. They’ll get an average of 17.95 days of extra pay, reports the Charleston Regional Business Journal. That’s more than the payout for many commercial airplanes workers in the Puget Sound region, who learned last week they’ll get 14.75 days.

Analyst Richard Aboulafia, with the Teal Group, took Boeing corporate officers to task for their engineering and product development strategy in his monthly column. Aboulafia writes that engineers have been nudged aside by company “bean counters.”

Here’s an excerpt:

Chicago’s view of engineering, as seen in management changes, union negotiations, product launch decisions, and design outsourcing moves, is that it’s a secondary consideration, far behind financial and market considerations.

Aboulafia will speak at the Pacific Northwest Aerospace Alliance conference that will be held next week in Lynnwood.

More in Herald Business Journal

More than 60 Boeing 737s per month: Can suppliers keep up?

There was lots of talk this week about the prudence and pressures of soaring production rates.

Developer proposes an 18-story building in Lynnwood

It would be the second-tallest in the county and include apartments with retail space.

Even as stock markets shook, many investors held steady

Older investors were buying stocks, but at a lower rate than their younger counterparts.

Snohomish County business licenses

PLEASE NOTE: Business license information is obtained monthly from the Washington Secretary… Continue reading

New Everett mayor speaks out about business in city, region

Q&A: Cassie Franklin on what can be done to get Boeing to build the 797 here and attract new industries.

Aerospace analyst explains how he’ll help state’s Boeing bid

Richard Aboulafia will deliver a report on Washington’s strengths and weaknesses in landing the 797.

Air passenger traffic growing faster than airplane capacity

“Our customers are in a good place,” a Boeing marketing executive says of the airlines.

JC Penney to close store at the Cascade Mall in Burlington

Eight store closures will result in about 480 job cuts, according to CNBC.

Budget: Lockheed gets almost as much as State Department

Boeing is in second place with annual sales of $26.5 billion in 2016.

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