| HeraldNet - Snohomish County's online news source |
 WEDNESDAY, NOVEMBER 11, 2009 9:05 am |
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 Airbus leads Boeing in orders, deliveries Airbus has won more net orders and delivered more aircraft than its rival Boeing, as of Oct. 31. The European jet maker reported Friday that it has received 123 net jet orders through the end of last month. Airbus has delivered 399 airplanes to customers so far this year. In comparison, Boeing lists 84 net orders on its Web site. And the Chicago-based company has handed over 394 jets to customers this year. Also today, Airbus says it inked a deal with Turkish Airlines for three A330-300s (that's not included in its above order total). And Turkish Airlines signed a tentative deal for two A330 Freighters. ... [Read More]
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On Thursday, Airbus put in the air its first A330 Freighter, an airplane that could be the jet maker’s first to be assembled in the United States. Airbus’ parent company, EADS, has said it will put an A330 Freighter assembly line in Alabama should it and partner Northrop Grumman win the U.S. Air Force’s tanker competition. The A330-200 Freighter, Airbus’ attempt to compete with Boeing in the mid-sized cargo market, took off for its maiden voyage from Toulouse, France, on Thursday. The cargo jet flew for about four hours, triggering the start of a 180-hour flight test program. “The A330-200F is the right aircraft at the right time,” said John Leahy, Airbus’ chief operating officer. “We are at the eve of a market recovery, and now is the time for airlines to prepare for future freight growth.” Airbus has long been overshadowed by Boeing in the freight market. The Chicago-based Boeing says its freighters make up about 90 percent of the world’s cargo capacity. Boeing’s latest freighter, based off its 777 passenger jet, made its debut earlier this year. Boeing is looking at offering the U.S. Air Force either a 777 tanker or a 767 tanker. The jet maker has said it could offer both. EADS and Northrop will offer a tanker derived from Airbus’ A330. The duo plan to assemble the tanker in Mobile, Ala. Before the Air Force called off the last round of competition in 2008, EADS declared it also would put an A330 Freighter line in Alabama should it win the multi-billion dollar contest. The Air Force released its draft requirements for its aerial refueling tanker in late September. Already the Pentagon has seen opposition from both sides to its draft. Northrop and EADS claim the Air Force released pricing information to Boeing on their tanker when Boeing protested the Air Force’s initial award of the contract to Northrop and EADS. Government auditors sided with Boeing in the protest, leading the Air Force to cancel its contract with the pair. Air Force officials call the pricing information given to Boeing outdated and irrelevant to the new contest. Boeing wants to see the Air Force include in the tanker contest a preliminary ruling by the World Trade Organization against Airbus over illegal subsidies. Airbus has a counter claim pending with the WTO. The Air Force has said it won’t consider the preliminary ruling. Regardless of the tanker contest, Boeing and Airbus will continue to battle in the commercial realm for a growing cargo business. Airbus estimates that the world will need 3,400 freighters over the next 20 years with 1,600 of those in the mid-size market. Airbus plans to deliver its first A330 Freighter next summer to Ethiad Crystal Cargo. India’s Flyington Freighters originally was scheduled to take the first freighter but has rescheduled its deliveries due to the global market downturn. ... [Read More] E-mail | Print | Comment Some don't like S.C.'s "secret" Boeing deal South Carolina put up $450 million in incentives to land the Boeing Co.'s second 787 production line. But the full details of the state's deal with Boeing may not be made public to the residents of South Carolina for a year, reports The Post and Courier. Some people in South Carolina aren't happy about the state's deal with Boeing or the lack of transparency. Read the South Carolina Policy Council's initial response to Boeing's announcement. “Boeing's decision to expand in South Carolina is good news. Unfortunately, South Carolina taxpayers will have to pay them to do it,” said Ashley Landess, president of the council. “Clearly, legislative leaders misled the public and rank-and-file lawmakers about the purpose of this special session. … A handful of politicians crafted a secret deal to take money from South Carolina businesses and taxpayers and give it to a billion dollar company.” Here's more from the council on “Boeing's bailout.” A couple South Carolina lawmakers have responded to the South Carolina Policy Council's claims. Washington residents won't be too surprised to hear that portions of the S.C. deal with Boeing aren't being made public. When Washington lawmakers passed more than $3 billion in incentives to land Boeing's first 787 line, they agreed to black out some of the agreement, saying that the information was confidential to Boeing. ... [Read More] E-mail | Print | Comment
If you're still up at 12:30 a.m., you can watch the first flight of Airbus' A330-200 Freighter. The European jet maker has scheduled the freighter's flight for 8:30 a.m., GMT (or 12:30 a.m., PST), Thursday, Nov. 5. Airbus will stream the A330F's flight live online. ... [Read More] E-mail | Print | Comment Boeing's announcement last week to put its second 787 production line in South Carolina has inspired a couple of cartoons. The PI's David Horsey published this one on Monday. For some reaction from South Carolina on it, read this. A reader sent in the picture to the right of another cartoon depicting South Carolina Boeing workers: ... [Read More]
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Want a job at Boeing Charleston? Got manufacturing skills? Here's a video from a Charleston TV station on how to land a job with Boeing Charleston: ... [Read More] E-mail | Print | Comment Boeing wins 10 jet orders The Boeing Co. picked up 10 new aircraft orders last week, according to an update on its Web site Thursday. All were for Boeing’s 737s. Norwegian Air ordered four and an unknown customer(s) ordered six. The 10 orders brings Boeing’s net tally to 84 as of Oct. 27. Boeing's rival Airbus has won 123 net orders through the end of September. ... [Read More] E-mail | Print | Comment Boeing debuts tanker video In case you missed it in the Boeing 787 news yesterday, there also was some tanker news. Today, Boeing posted on its Web site a new video about its KC-7A7 tanker family: ... [Read More] E-mail | Print | Comment
Machinists: We offered Boeing long-term 'no strike' deal to no avail Machinists union leaders have struck back at the Boeing Co.'s decision to pick South Carolina over Everett for a second 787 line. "No matter what Boeing says or implies, the truth is this: We did offer Boeing a 10-year contract, and even offered to go longer than that. And when we did, they seemed stunned, and stopped talking," said Tom Wroblewski, Machinists' president, in a statement. Boeing's CEO Jim McNerney emphasized last week the company's need for long-term labor stability with its unionized workforce in the Puget Sound. Company spokesman Tim Healy said today that Boeing based its decision to select Charleston over Everett on two major factors: labor stability and competitiveness. He noted that the labor factor played a larger role in Boeing's decision than the competitiveness. Several Washington state leaders say they did all they can to offer Boeing incentives to place the second line here. "This is obviously a very disappointing day for all Washingtonians," said Gov. Chris Gregoire. "We did all we could to demonstrate that Washington is the best place in America to build airplanes." Rep. Rick Larsen, D-Wash., also thought the state had made its best effort to be competitive. “It is now clear, if it wasn’t before, that there weren’t enough training facilities we could build, or a large enough B&O tax break we could give, to keep Boeing from moving their second line to South Carolina. The labor-management divide was just too wide to bridge," Larsen said. But the Machinists say the labor divide was not the problem. "When our team asked Boeing if 10 years was going to be enough for them, they didn't respond," Machinists' Wroblewski said. "And when I asked them to confirm that the extended contract would secure the second 787 line for Washington state, their reply was only: 'Well, it would be helpful.' But they would not commit to anything." ... [Read More]
E-mail | Print | Comment Washington reactions: Murray calls Boeing decision ‘shortsighted' There's a firestorm of reaction on Boeing's announcement to pick South Carolina as the site of its second 787 assembly line. From Sen. Patty Murray, D-Wash. “I am disappointed that Boeing cut off negotiations and passed on a final chance to make this happen,” Murray said, in a statement. “Even when they moved headquarters to Chicago, Boeing's Washington workforce remained dedicated to the quality product they make. “Now, Boeing has decided to take their second 787 line to South Carolina. It's a shortsighted decision.” From SPEEA “We are astounded that Boeing has chosen to compound the problems of the 787 program by further fragmenting the supply chain,” said Ray Goforth, executive director of the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001. “There is no credible business case for this decision.” From Mayor Ray Stephanson "I am deeply disappointed by this turn of events. I had hoped for a different outcome. This decision will have an adverse impact on many loyal and dedicated workers, suppliers and sub contractors here in Puget Sound. The effect of today's decision will be widely felt in families, schools, local small businesses and community services. " From Aaron Reardon, Snohomish County Executive "This could have been entirely avoided," he said. "This should remove all doubt" that other states are willing to be more competitive than Washington, Reardon said. From Gov. Chris Gregoire "This is obviously a very disappointing day for all Washingtonians. ... We did all we could to demonstrate that Washington is the best place in America to build airplanes." ... [Read More]
E-mail | Print | Comment Boeing calls emergency meeting of 787 employees in Everett, SPEEA says Boeing's engineers union says that the company has called an emergency meeting for 787 employees in Everett. SPEEA's executive director Ray Goforth sent out the tweet. According to FlightBlogger, Boeing Charleston will hold a mandatory there at 2 PST. ... [Read More] E-mail | Print | Comment Another indication SC has won Boeing? Snohomish County Executive Aaron Reardon has issued a “if Boeing chooses S.C.” statement (which could be viewed as an indicator that Boeing hasn’t chosen Everett): “In the event a successful conclusion cannot be reached, we must all recognize that the Boeing Company and the IAM will maintain a strong presence in the Puget Sound and throughout our state. To go forward, we all must understand why these two parties could not reach an agreement so that we may all play a role in rebuilding this relationship and making Washington state the most competitive state in the union,” Reardon said. On Twitter, one South Carolina real estate agent already is hopeful that Charleston has snagged Boeing’s second 787 line. The tweet: “I am looking forward to help relocate boeing employees to SC charleston area” ... [Read More] E-mail | Print | Comment Boeing, Machinists have obligation to community to try more talks, Inslee says Rep. Jay Inslee has joined the effort by Washington state politicians to force the Boeing Co. and its Machinists back into talks over Boeing's second 787 line. "It is my belief that both parties have an obligation to the community at large to leave no stone unturned in this regard," Inslee wrote in a letter to Boeing's Tim Keating and the Machinists' Rich Michalski. The communities of Washington state and its people will be affected by Boeing's decision, Inslee said. The state, counties and cities "have all contributed to the Boeing endeavor by means of massive tax breaks, infrastructure development, job training and politicial support for decades," he wrote. Washington offered more than $3 billion in incentives to Boeing and aerospace companies in 2003 in order to land the first 787 production line. "The community fairly expects some effort by both parties to engage some third party," Inslee said. Sen. Patty Murray contacted both the Machinists and Boeing this morning offering to facilitate further discussions. Boeing spokesman Tim Healy said today that the company has what it needs to make its decision between Everett and Charleston, S.C. South Carolina lawmakers are expected to pass tax incentives aimed at Boeing during a special session today and send that bill to the governor shortly. ... [Read More] E-mail | Print | Comment Boeing: 'We have the info we need' for 787 decision The Boeing Co. said this morning that it has the information it needs to decide where to site its second 787 assembly line. "No decision has been made," said Tim Healy, Boeing spokesman. But Healy's comments made clear that last ditch efforts to sway the company likely are pointless. "We have the information we need to make the decision," he said. Sen. Patty Murray, Rep. Norm Dicks and Gov. Chris Gregoire all said this morning that they are urging Boeing and its Machinists union to continue talks about how to keep the 787 line here in Everett. Everett Mayor Ray Stephanson also asked Boeing and the Machinists to resume talks. "I strongly urge Boeing and the Machinists to return to the table with Senator Patty Murray to bring this matter to a conclusion. "These decisions have a profound impact on families, the economy and the community. In fact, thousands of livelihoods in our community are at stake," Stephanson said. But Boeing's Healy made it sound that time had run out for discussions with the union. "We were very clear with the union about when we needed their best and final proposal," he said. ... [Read More] E-mail | Print | Comment Northrop ponders no bid, legal action in AF tanker contest The Air Force hasn't yet released its final tanker requirements to competitors the Boeing Co. and duo Northrop Grumman and EADS, but the Pentagon already faces trouble. Northrop Grumman told reporters today that it's not ruling out boycotting the contest altogether. The defense contractor began raising concerns about pricing information that the Air Force gave Boeing during the last contract. Although the Air Force said it didn't believe its actions harmed Northrop, the agency did ask Boeing permission to release its tanker pricing from the last contest to Northrop. Boeing said no. Northrop officials this morning said they also haven't ruled out taking legal action over the pricing info. For its part, Boeing has raised concerns about the draft request for proposal. The company and its supporters want the Air Force to take into consideration a recent WTO ruling against Airbus (EADS is its parent company) in the tanker contract. The Air Force says it won't do so. Also this morning, the Boeing Machinists released comments regarding Northrop and EADS' tanker partnership: From the IAM's general vice president Richard Michalski “EADS/Airbus is currently promoting its phantom tanker program around the world without Northrop Grumman. So here's the ‘big why:' if Northrop Grumman is a full partner with EADS/Airbus on the tanker program, why aren't they being marketed around the world alongside the French company? “It turns out that the ‘big why' is a big lie. EADS/Airbus is using Northrop Grumman as mere window dressing on its latest ploy to steal American jobs.” ... 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S.C. lawmakers give OK on incentives to lure Boeing South Carolina state senators have approved incentives meant to lure the Boeing Co. into siting its second 787 production line there. State legislators convened during a special session today to look at economic development incentives the state can offer to three companies, including Boeing. Boeing's chief executive Jim McNerney said last week that the company had narrowed its second line search to Charleston, S.C., and Everett, home of Boeing's original 787 line. Company leaders have been meeting with representatives of the Machinists union to discuss one of McNerney's major concerns about production in Everett: labor strikes. Boeing workers in South Carolina voted out union representation there last month. Boeing is expected to announce the site of its second 787 line within a few weeks. This morning, South Carolina's Finance Committee OK'd low-interest construction bonds and incentives that include a sales tax exemption on fuel used in test flights. To qualify, a company would have to bring at least 3,800 full-time jobs and at least $750 million in investment to the state over seven years. The S.C. Senate approved the tax incentives by a vote of 44-0. “We've got an opportunity before us now ... to bring jobs to our people that are so desperately needed,” said committee chairman Hugh Leatherman, R-Florence. The measure, which does not name a specific company, now heads to the House and leaders believe it could be approved this week. The five-part legislation, which expands existing law, includes sales tax incentives that would exempt fuel used in test flights and flights to transfer aircraft between manufacturing facilities. It would also exempt computer equipment purchases and allow a qualifying company to immediately pay no sales tax on construction materials, rather than wait for a 2011 phase-in. It would ensure the company could negotiate with state officials to pay little corporate income taxes for 10 years. It deletes the minimum pay requirement from the break already allowed for companies investing less and creating fewer jobs. The proposal would also allow the state to issue up to $170 million of economic development bonds that would allow a company to build using a lower interest rate, making the project cheaper, if approved by the Legislature on a two-thirds vote. The Associated Press contributed to this report. ... [Read More] E-mail | Print | Comment Political support grows for Northrop-EADS tanker Northrop Grumman and EADS got a boost of support for their Air Force tanker offering Monday. The Aerospace Alliance rounded up 500 supporters at a rally for Northrop and EADS, reports the Mississippi Press. The newly formed group has the backing of the governors of Mississippi, Alabama and Louisiana. Northrop and EADS would build their tanker in Mobile, Ala., should the Air Force award its roughly $35 billion contract to the duo. The Boeing Co. is also competing for the lucrative deal. Its tanker would be built here in Everett, with some finishing work likely being done in Wichita, Kan. "One might suspect that someone has made a political calculation that it is a lot easier to say 'no' to Alabama, Louisiana, Mississippi and Florida, because it's too hard to say 'no' to Kansas and Washington state," said Sam Adcock, senior vice president, government relations, with EADS, according to the Mississippi Press report. Alabama Sen. Richard Shelby will speak later today about some of the "flaws" that he has identified with the Air Force's draft requirements for replacing its aging fleet of KC-135 tankers. In a letter to Defense Secretary Robert Gates, Shelby said the contest -- the Air Force's third try -- already favors one competitor. ... [Read More] E-mail | Print | Comment
IBM names Boeing’s McNerney to board IBM has elected Boeing’s Jim McNerney to its board of directors. McNerney has been president and chairman of Boeing since 2005. He also serves as director of Procter & Gamble, trustee of Northwestern University and The Field Museum of Chicago. By picking McNerney, IBM’s board increases to 13 members. ... [Read More] E-mail | Print | Comment Ala. senator calls Air Force tanker contest flawed Sen. Richard Shelby, R-Ala., today called the U.S. Air Force tanker contest unfair, saying the agency’s draft request for proposals “clearly favors one competitor.” I’m guessing that competitor isn’t Northrop Grumman and its partner, EADS, which would assemble their tanker in Mobile, Ala. Northrop and EADS’ rival, the Boeing Co., would assemble its tanker here in Everett. “The draft RFP creates a cost shootout where the lowest priced bid wins, regardless of capabilities offered – capabilities that could save the lives of our warfighters. Such a race to the bottom is unworthy of our men and women in uniform. The draft RFP needs a serious rewrite to ensure that the taxpayer and the warfighter are equally protected. We cannot have our military flying in paper airplanes simply because it’s cheaper,” Shelby said in a statement. Tomorrow, Shelby will hold a press conference with the rest of the Alabama delegation over the Air Force tanker competition. This is the Air Force’s third try at replacing its KC-135 tanker fleet. Although the draft request for proposals was released just a month ago, this new competition already has run into problems, raising concerns that the contest is headed for another lengthy protest and delay in replacing the Air Force’s aging fleet. ... [Read More] E-mail | Print | Comment Boeing approves dividend, pension payment Boeing’s board of directors gave the OK today for a quarterly dividend of 42 cents per share for shareholders on record as of Nov. 6. The dividend is payable Dec. 4. The board also approved a $1.5 billion contribution of Boeing common stock to the company’s defined benefit pension plan. “By using stock rather than cash, Boeing can bolster its pension plans while preserving its financial flexibility,” the company said, in a statement. ... [Read More] E-mail | Print | Comment
Boeing: No to releasing tanker pricing to Northrop, EADS – report The Boeing Co. apparently refused to give the OK for the Pentagon to release its KC-767 pricing from the 2008 tanker contest to Northrop Grumman and EADS, reports Reuters. As the Air Force prepared to start a new contest in September, it downplayed a complaint by Northrop that the agency had provided Boeing with its KC-30 pricing from last year. To pacify Northrop and EADS, the Air Force requested Boeing's approval for providing Northrop and EADS its KC-767 pricing from the last contest. Boeing said no. Yesterday, Reuters also published this report on early problems that have surfaced with the Air Force's new contest. Boeing's tanker spokesman, Bill Barksdale, responded this morning to the Reuters' report on the company's tanker Web site. The Air Force is on its third attempt to replace its aging KC-135 tanker fleet. Its 2008 award to Northrop was halted after government auditors, working at Boeing's request, found significant flaws in the competition. The Air Force is hoping to announce a winner next summer for roughly $35 billion contract. ... [Read More] E-mail | Print | Comment
Confidence growing in South Carolina over Boeing? A Charleston, S.C., city councilman seemed pretty confident about Boeing expanding its 787 site there, according to this story in the Post and Courier. During a Charleston County Aviation Authority board meeting, Tim Mallard, who apparently is a board member and city councilman, wanted to talk about Boeing's future in the region. According to the publication: "From what I hear we are going to have the opportunity for some job creation here by Boeing ... " Mallard began before authority chairman David Jennings cut in and told him to wait until closed session. ... "Suppliers for Boeing are going to start coming, and it will be more than one in the next year," he continued. Boeing is looking at both Charleston and Everett for its second 787 assembly line. The company is expected to make its decision in a few weeks, Boeing CEO Jim McNerney told reporters and analysts yesterday. ... [Read More] E-mail | Print | Comment If offered, how should Machinists vote on no-strike deal with Boeing? Machinists' leaders have responded to media reports that they secretly are negotiating a no-strike deal with the Boeing Co. The major thing to keep in mind: union leaders don't have the final say on any such contract, the members do. With that said, how do you think the Machinists should vote, if it ever came to that? ... [Read More] E-mail | Print | Comment Machinists leaders: No secret talks with Boeing Responding to a media report that they are engaged in secret talks with Boeing, Machinists leaders put out this statement today. “The Union has continually reported to our members and the public. Issues including jobs, the second 787 line, the replacement airplane for the 737 and bringing our work back in house where it belongs are just some of the topics being discussed.” The key point in the leaders message: Members would get a vote on any agreement being discussed (including the rumored no-strike deal). Boeing is considering where to locate its second 787 assembly line. The company has noted Machinists' strikes as a reason it's looking at Charleston, S.C., as well as Everett. ... [Read More] E-mail | Print | Comment
McCain calls for more oversight of Boeing-Northrop tanker contest Sen. John McCain wants to see a watchdog group get involved in the Air Force's latest aerial refueling tanker contest between the Boeing Co. and duo Northrop Grumman and EADS. McCain played a major role in putting an end to a contract awarded by the Pentagon to Boeing. A senior weapons buyer was found to be steering the contract Boeing's way in lieu of jobs at the Chicago-based aerospace company for she and her family. In 2008, the Air Force awarded the contract to Northrop Grumman and EADS. But that contract also was halted when government auditors found the Air Force's contest to be unfair. Last month, the Air Force kicked off its third attempt to replace its aging KC-135 Stratotanker fleet. McCain told Reuters that he would like to see independent government auditors involved from the get-go. From the Reuters story: "I'd like to see them track it along the way," the Arizona Republican said. "And I would trust their judgment as to whether the whole process is biased toward one side or the other." "Given Boeing's past experience, it's just hard for me to believe that they would try to skew the process in an unfair fashion," added McCain. "But that's why we have watchdog agencies that have the talent and expertise, I think, to make those kind of judgments. I cannot make a judgment." ... [Read More] E-mail | Print | Comment Call for Boeing CEO's exit – wise or unfounded? Within hours of Boeing's release of its third quarter loss, a call for the ousting of Boeing chief executive Jim McNerney hit the Web. I had Boeing's management shakeups on my mind this morning when I attended an Economic Development Council of Snohomish County quarterly meeting. Two years ago, Boeing's Mike Bair appeared at the meeting a few weeks after being moved from his position as 787 chief. After the 787 delay this summer, Boeing's Scott Carson announced his retirement a few months later. Both Carson and McNerney said the retirement was voluntary and not related to the 787's troubles. In June, analysts generally didn't feel a management shakeup was likely over the 787 delay. Although Boeing's loss reported today was slightly more than expected, many analysts seem unsurprised if not upbeat about Boeing. Readers: Is the call for McNerney's ousting fair? ... [Read More] E-mail | Print | Comment Boeing posts $1.6 billion 3Q loss on 787, 747 charges The Boeing Co. recorded a $1.6 billion loss in the third quarter after taking charges on its delayed 747 and 787 jet programs. "The 787 cost reclassification and the 747 charge for increased costs and difficult market conditions clearly overshadowed what continues to be otherwise solid performance across our commercial production programs and defense business," said Jim McNerney, Boeing CEO, in a statement. The loss of $2.23 per share is more than what analysts had predicted. Various analysts polls by Bloomberg and MarketWatch predicted a quarterly loss of between $1.93 and $2.10 per share. Despite recent speculation that Boeing's troubled 787 may be delayed again, the company reiterated the jet's schedule with first flight taking place this year and first delivery in late 2010. "We look forward to getting the 787 and 747-8 in the air soon and moving forward with flight test and certification for these two important programs," McNerney said. Last month, Boeing disclosed a $1 billion charge on its 747-8 jumbo jet program. In August, Boeing had announced it would take a $2.5 billion charge on its 787 Dreamliner program, saying the first three airplanes would be sold as the company had planned previously. On Thursday, Boeing announced that it wrote down another $138 million on the program between August and September. As a result of all the charges, Boeing reduced its earnings per share estimate from July by more than $3 per share to between $1.35 and $1.55 per share from $4.70 to $5.00 per share. Boeing said it would issue its 2010 earnings estimate in the fourth quarter. Revenues for the first nine months of 2009 rose 4 percent to $50.3 billion due to higher commercial deliveries and growth in the defense segment. Earnings for the first nine months declined to $0.06 per share, including the third-quarter charges. Boeing booked 96 gross orders for commercial jets in the quarter but logged in 17 jet order cancellations. The company delivered 113 aircraft in the third quarter. That's up from 84 deliveries in the third quarter of 2008. However, 2008's performance was affected by the Machinists' strike. The company's total backlog stood at $320 billion at the end of the quarter, down 2 percent. ... [Read More] E-mail | Print | Comment
EADS increases its focus on tanker contest EADS North America's chairman will focus on the company's bid with Northrop Grumman to win the U.S. Air Force tanker contest, according to an announcement today. Ralph D. Crosby, Jr. has been EADS North America's chairman and CEO. Crosby will turn over his CEO responsibilities to Sean O'Keefe, a former Navy secretary and NASA administrator. “I am delighted to have the opportunity to lead the EADS team in expanding its presence in the U.S. defense industry,” O'Keefe said, in a statement. “Our focus will continue to be offering the most capable defense and homeland security solutions available, investing in America and its workforce, and performing beyond our customers' expectations. Crosby will stay on as chairman and oversee EADS' role in the Northrop Grumman tanker offer to the Air Force. The Air Force opened its multi-billion dollar aerial refueling tanker competition late last month. As the Seattle PI reported this morning, the Air Force answered some questions it has received thus far in the contest. The Air Force will issue a final request for proposals after responding to initial queries by bidders Boeing and duo Northrop and EADS. The Pentagon plans to pick a winner by next summer. ... [Read More] E-mail | Print | Comment Boeing shares downgraded on 787 concerns Boeing Co. shares have dropped more than 3 percent this morning after Morgan Stanley downgraded the aerospace giant's stock. According to a Wall Street Journal report, Morgan Stanley is concerned that Boeing's 787 will be delayed even further. Boeing already has pushed back the jet's first delivery by two and a half years. Last Friday, FlightBlogger, an industry blog, suggested Boeing may miss its goal of putting the 787 in the air by the end of 2009. Morgan Stanley said it's not only worried about first flight but is "even more concerned first delivery could be 6 months delayed to Spring 2011." The company could fall short on guarantees to customers, including weight and fuel burn assertions, which would entitle airlines to remuneration, the firm said. Boeing will report its third quarter earnings tomorrow and is expected to provide an update on its troubled 787 Dreamliner program. ... [Read More] E-mail | Print | Comment
Three opinions on the AF tanker contest The Air Force is 8 months or more away from awarding a multi-billion dollar tanker contract either to the Boeing Co. or to duo Northrop Grumman and EADS. But contest generates plenty of opinion: This cartoon, which likens Boeing's tanker spin to balloon boy, from Alabama's Press-Register. This opinion piece, which argues that more weight should be given to U.S.-job creation, from the Wichita Eagle. And an opinion piece, suggesting Airbus subsidies should be counted against the Northrop-EADS' bid, by the Connecticut's AFL-CIO president in the Hartford Courant. ... [Read More] E-mail | Print | Comment
Boeing opens MRO hangar in Shanghai Boeing Shanghai and Shanghai Airlines opened a two-bay hangar at their joint venture, Boeing Shanghai Aviation Services Co., Ltd. The new hangar, located at Shanghai Pudong Airport, will play a role in Boeing’s plan to “become a world-class facility and an aviation services leader in China,” the company said Thursday. China is the world's largest international market for Boeing commercial airplanes. Boeing Shanghai, an MRO (maintenance, repair and overhaul) facility, performs line maintenance and heavy maintenance as well as upgrades for airplane interiors, avionics and in-flight entertainment systems. "Boeing Shanghai's increasing capabilities will provide our Chinese airline customers and the international market the services that will help them expand safely and efficiently," said Lou Mancini, senior vice president, Commercial Aviation Services for Boeing. "China and Asia are the global leaders in aviation growth, and the newly expanded facility provides an incredible opportunity to support these expanding fleets throughout their life cycle." Boeing is the largest foreign customer of China's aviation industry. China produces parts and components for all Boeing commercial airplane programs ... [Read More] E-mail | Print | Comment Governor allocates $1.5 million to aerospace training Gov. Chris Gregoire allocated $1.5 million of federal funds to aerospace training in Washington state. The governor spoke Thursday morning at Everett Community College's aviation school at Paine Field. Her announcement comes as the Boeing Co. makes up its mind where to put a second production line for its 787 Dreamlner jet. "We are investing in our people, but we are also investing in our future," Gregoire said. Gregoire used discretionary Workforce Investment Act funds from the federal government for the one-time $1.5 million allocation. About $600,000 of that will be alloted to the Washington Aerospace Training and Research Center, which encompasses training sites in Spokane and here in Snohomish County. That money will be used for coordinated training programs at the centers. About $500,000 will be used to buy equipment for the centers and state's community college programs, said Linda Lanham, who directs the Aerospace Futures Alliance, an industry based group. "We're really happy to see this moving forward," Lanham said. The governor's decision was applauded by industry, education and government representatives alike. “I thank Gov. Gregoire for supporting our efforts and stepping forward to help us maintain our competitive edge when it comes to building commercial airplanes,” said Aaron Reardon, Snohomish County executive, in a statement. “We know we make the best commercial airplanes in the world, and we want to protect those thousands of jobs at all costs." The state has about 80,000 people working in the aerospace industry, including roughly 35,000 in Snohomish County, the location for Boeing's widebody jet factory. Boeing has been considering other locations for its second 787 line, beside Everett where the first assembly line remains. The company took "procedural" steps in applying for permits to expand its South Carolina 787 parts factory but says no decision has been made. Boeing is expected to name the second line's site by year's end. ... [Read More] E-mail | Print | Comment
Charleston still a Boeing favorite, says S.C. lawmaker South Carolina is still in the fight for Boeing's second 787 line, says State Representative Chip Limehouse. "I think things are going pretty well not saying we're not going to fumble on the five yard line, you asked me if I was a betting man, I'd bet on South Carolina,” he told ABC News 4 Charleston. Limehouse's remarks come a day after top CEOs around the state sent Boeing's Jim Albaugh a letter urging him to keep the second line in Washington state. South Carolina is seen by many as Everett's top competitor for the final assembly location. Limehouse says that Charleston will win because of the state's “low union presence” and business friendly climate. ... [Read More] E-mail | Print | Comment ‘McBoeing' and Moody's Crosscut has this interesting piece today on Boeing and its McDonnell Douglas past/future. “It is time to say out loud what we local airplane dorks have been thinking for years. Boeing has finally, irrefutably become the thing that we loathed and found most pitiable in our youth: McDonnell Douglas. … The old Boeing embodied stout Northwest qualities. The company was strong, capable, and above all else relied on technical achievement as the ultimate arena of success or failure.” I know many readers have expressed concerns over the McDonnell Douglas mentality still at work within Boeing. And this piece, which quotes analyst Richard Aboulafia, explores the McDonnell influence on Boeing today in light of the company's embarrassing 787 and 747-8 delays. Word of warning to the reader: The Crosscut piece doesn't paint a pretty picture for Boeing's future here in Washington state. “The most realistic thing for all of us fans of the Old Boeing to do is use a new filter when evaluating anything Boeing does or says it will do: "What would McDonnell Douglas do?" Will McBoeing try to move as much production as possible to union-free South Carolina? Of course it will. Will McBoeing attempt to extract as many concessions as possible from local and state governments under the ruse of keeping jobs here in the Northwest? Of course it will. Will those concession do anything to change the outcome? Of course not.” Also today, Moody's lowered Boeing's ratings outlook to “negative” from “stable” based on the company's 787 troubles, writes the Associated Press. ... [Read More] E-mail | Print | Comment Marysville supports Boeing, too The city of Marysville joined a growing list of organizations, companies and government entities that want the Boeing Co. to put its second 787 assembly line here. The city recently passed a resolution in support of the Washington Aerospace Partnership's efforts on behalf of Boeing's interests in the state. The partnership and city are urging the U.S. Air Force to award its $35 billion aerial refueling tanker contract to Boeing over rival Northrop Grumman and partner EADS. Marysville, like a number of businesses in the state, also urge Boeing to pick the state for the site of its next assembly line for the company's 787 Dreamliner. Boeing already has its first 787 line here in Everett. But the company has been filing permits in South Carolina to expand its 787 parts factory there. Boeing says the permits are a “procedural” step, not an indication that it has picked South Carolina over Washington state. Boeing is expected to make a decision by year's end. The Air Force plans to announce its tanker winner next summer. ... [Read More] E-mail | Print | Comment
Wash. biz leaders urge Boeing to site second 787 line here A group of CEOs in the state recently sent Boeing's Jim Albaugh a letter urging him to site the company's second 787 assembly line here. Here's the letter: Dear Mr. Albaugh: Washington is justifiably proud of the fact that Boeing's presence here has firmly established the state as the commercial aerospace capital of the world. From William Boeing's original 1916 seaplane, to the 707 that revolutionized commercial air travel, to today's innovative 787, Washington has benefited greatly from Boeing's tremendous economic and community contributions. We also believe that, in return, the State of Washington has provided a supportive and productive home for Boeing and its employees. As you make a significant decision - where to site a second production line for the 787 - we encourage you to locate that line here in Washington, where we have a long track record of demonstrable success together. Like that of Boeing, our companies' histories provide clear evidence that companies can be built and operated successfully here in this state. We recognize that Washington continually must improve its competitive standing in today's global economy. In recent years, we have made progress on a number of issues that are important to both Boeing and the rest of the business community, but agree that more work remains to be done. As leaders of the local business community, our commitment is to work closely with you and state officials to create a business climate that allows all Washington firms to attract the talent, capital and other resources necessary to compete successfully in the competitive global economy. In particular, we pledge our support to you and your entire company in working to ensure Washington remains the single best place for you to design, build and market commercial airplanes. Thank you for considering Washington as a location for the next 787 production line. We join many others in our community in looking forward to building on our great history with Boeing and creating an even more successful future together. Sincerely, William S. Ayer, Chairman & CEO, Alaska Airlines Colleen B. Brown, President & CEO, Fisher Communications Jeff Brotman, Chairman & Co-Founder, Costco Wholesale Phyllis J. Campbell, Chair/Pacific Northwest, JPMorgan Chase Craig Cole, President & CEO, Brown & Cole, Inc. Robert W. Cremin, Chairman, President & CEO, Esterline Technologies, Inc. Craig Dawson, President & CEO, Retail Lockbox, Inc. Fred Devereux, President, Wireless Operations, West, AT&T Andrew Doman, President & CEO, Russell Investments Melanie Dressel, President & CEO, Columbia Bank Reginald Fils-Aime, President & COO, Nintendo of America, Inc. Michael Hughes, President, Safeco Insurance Companies Barbara Hulit, President, Fluke Corporation Michael Kluse, Director, Battelle Tod Leiweke, Chief Executive Officer, Seattle Seahawks Bill Lewis, President, Lease Crutcher Lewis Howard Lincoln, Chairman, Seattle Mariners Steve Loeb, President & CEO, Alaska Distributors Stan W. McNaughton, President & CEO, PEMCO Financial Services Colin Moseley, Chairman, Green Diamond Resource Company Carol Nelson, President & CEO, Cascade Financial Corporation Kirk R. Nelson, President-Washington, Qwest Communications Jeff Pitzer, Business Unit Leader, BP Cherry Point Stephen P. Reynolds, Chairman, President & CEO, Puget Sound Energy George W. “Skip” Rowley, Jr., CEO & Chairman of the Board, Rowley Properties, Inc. Johns W. Stanton, Managing Partner, Trilogy Partnership Brad Smith, Sr. V.P. & General Counsel, Microsoft Corporation Randall H. Talbot, President & CEO, Symetra Financial Corporation Jim Warjone, Chairman & CEO, Port Blakely Tree Farms ... [Read More] E-mail | Print | Comment |
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