Over the next six months, several events and decisions will shape the Boeing Co.’s future and, in turn, Snohomish County’s.
Here’s a look at some of the key issues:
787 fix and schedule
Boeing postponed the first flight of its 787 in June, citing a need to reinforce a structural weakness in the area where the jet’s wings and body join. The company has said it will release a new first flight and delivery schedule for the Dreamliner by the end of September. The mostly composite aircraft is already two years behind schedule. Although it has lost more than 70 orders for the Dreamliner, Boeing has 850 on backlog. But cost overruns and compensation payments to customers for late deliveries have investors wondering just when this fast-selling aircraft will turn a profit.
Air Force tanker bid
After two failed contests, the Pentagon is expected to again launch the competition for replacing the Air Force’s fleet of aerial refueling tankers. As early as September, the Air Force will release its requirements. Boeing will pitch a tanker based on either its 767 or its 777 commercial aircraft, both built in Everett. Its lead rival for the roughly $35 billion deal is duo Northrop Grumman and EADS, which is expected to offer the KC-30, based on an Airbus A330.
Illegal subsidies case
The World Trade Organization is expected to rule shortly on the case the United States made on behalf of Boeing. The company alleges its rival Airbus has received subsidies from European governments, giving Airbus unfair advantages over Boeing. The WTO’s determination could affect future aircraft development programs. But Airbus and the European Union have a similar case against Boeing pending with the WTO that will be ruled on later.
Second 787 line
With a backlog of 850 unfilled orders and a two-year delay, Boeing is considering establishing a second final assembly line for its 787 Dreamliner. The company has said it likely will make a decision by the end of the year. Both Everett and Charleston, S.C., are on the company’s site list, which is expected to include locations in Texas and California as well. Political leaders in Washington state worry that if Boeing picks elsewhere, it could be the company’s first step toward locating future jet lines outside the state.
747-8 progress
After delays in the 787 kept Boeing engineers from moving over to its revamped jumbo jet program, Boeing also had to push back the first flight and delivery of the 747-8. The upgraded jumbo jet borrows some of its new technology from the 787. The 747-8 Freighter is expected to make its first flight by the end of the year.
Production cuts
With the slowdown in passenger and cargo air traffic, airlines have been deferring jet deliveries, canceling orders and scaling back new requests. Boeing already has announced it will slow production on its 777 line in mid-2010 but maintains it will not need to cut rates on its other jet lines. Analysts and investors will be keeping a close eye, in particular, on the company’s single-aisle 737 production.
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