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.

Talk to us

More in Herald Business Journal

The 214-foot tall cranes work to unload their first cargo shipments at South Terminal at the Port of Everett on Thursday, April 8, 2021 in Everett, Wa. (Olivia Vanni / The Herald)
Renovated Port of Everett terminal gets first cargo customer

The 655-foot Westwood Columbia is the first ship to call at the newly upgraded South Terminal dock.

Project Roxy is a proposed 2.8 million square foot distribution center that would be built on a 75-acre parcel at the Cascade Industrial Center. The rendering depicts the proposed project at 4620 172nd Street in Arlington from a northwest perspective.
1,000 jobs: Amazon to open distribution center in Arlington

The company is the tenant behind Project Roxy, a $355 million building at the Cascade Industrial Center.

Garry Clark, the new CEO of Economic Alliance Snohomish County (Kevin Clark / The Herald)
At a tough time, a new CEO leads local economic development

Garry Clark has taken the helm at Economic Alliance Snohomish County, where job one is pandemic recovery.

Kathy Coffey (left) and Courtney Wooten
Leadership Snohomish County offers racial equity conference

The fifth annual day-long Step Up: Moving Racial Equity Forward will be held online on April 30.

FILE- In this Sept. 30, 2020, file photo, a Boeing 737 Max jet, piloted by Federal Aviation Administration (FAA) chief Steve Dickson, prepares to land at Boeing Field following a test flight in Seattle. Boeing says it has informed 16 of its customers that they should address a possible electrical issue in certain 737 Max aircraft before using them further. Boeing said Friday, April 9, 2021, that the recommendation was made “to allow for verification that a sufficient ground path exists for a component of the electrical power system.” (AP Photo/Elaine Thompson, File)
Boeing: possible electrical issue in some 737 Max aircraft

The company said that the new problem was unrelated to the flight-control system.

Aerospace supplier with Everett site files for bankruptcy

Wichita-based TECT Aerospace filed for Chapter 11 and plans to sell an Everett manufacturing facility.

Edmonds grocery store workers may soon earn hazard pay

Some employers are required to increase wages by $4 an hour, the city council voted Tuesday.

What local firms are doing to promote diversity and equity

Here’s how some of Snohomish County’s biggest companies and organizations say they are making a difference.

Boeing President Ron Woodard, fifth from left, breaks ground with Boeing officials to make way for the Boeing Commercial Airplane Group Headquarters Office Building at the Longacres Park site in Renton Wash. Wednesday, May 14, 1997. (AP Photo/Loren Callahan)
For sale: Boeing’s Commercial Airplanes headquarters in Renton

A large warehouse on the Bomarc property in Everett also is for sale.

Snehal Patel, Global Head of Cell Therapy Manufacturing at Bristol Myers Squibb, stand outside the facility on Monday, March 29, 2021 in Bothell, Washington. A Bristol Myers Squibb facility in Bothell is one of four facilities in the United States where the company supercharges a person's T-cells to better fight blood cancers. The facility uses a virus  -- a viral delivery system -- to add punch to an individual's T-cells. The T-cells are then returned to the person better-equipped to destroy cancer cells.  (Andy Bronson / The Herald)
Cancer patients nationwide send their blood cells to Bothell

At a Bristol Myers Squibb lab, the cells are altered and returned to patients fighting non-Hodgkin’s lymphoma.

Brett Smith, CEO of Propeller Airports, shares a scene from the March 4, 2019 opening of the commercial airline terminal at Paine Field during a Lynnwood Chamber of Commerce virtual gathering on March 17, 2021. From a screenshot.
Passenger service at Paine Field is gradually bouncing back

Terminal operator Propeller Airports foresees a possible upswing by June as air travel rebounds.

Terrie Battuello (Port of Everett)
Port of Everett economic director to join Economic Alliance

Terry Battuello will fill a newly created economic development position at the public-private nonprofit.