7E7 decision praised by officials

SEATTLE — The Boeing Co. announced Tuesday it plans to assemble its proposed new fuel-efficient 7E7 jetliner in Everett, where it has been building planes for decades.

"We are excited to continue our partnership with the state of Washington and the city of Everett on the 7E7," said 7E7 Senior Vice President Mike Bair in a news release.

The company’s board of directors also has given the Commercial Airplanes unit clearance to begin offering the new Dreamliner passenger jet to airlines. Responses will determine whether the project goes forward.

The company’s new CEO, Harry Stonecipher, said he’s optimistic about the 7E7’s prospects.

"We are 10 for 10 in bringing successful planes to market," he told a crowd of thousands of Boeing workers gathered at a downtown convention center.

"Now it’s time to move forward and add a new member to the Boeing family," said Alan Mulally, CEO of the Commercial Airplanes Division.

"Boeing will continue to lead commercial aviation for decades to come, no doubt about it," he said.

The decision was praised by the state’s elected officials.

"What a truly great day for Everett, for our state and for the best aerospace manufacturing workers in the world," said U.S. Rep. Rick Larsen, D-Wash., whose district includes Everett, 30 miles north of Seattle.

"The first Boeing plane was built in Washington and it’s only fitting that the next generation of planes will be made here too," said Sen. Maria Cantwell, D-Wash.

"One hundred years ago this week, the Wright brothers launched the Age of Flight," noted Sen. Patty Murray, D-Wash. "Today we proved that Washington has the Right Stuff to lead the next century of aviation."

The news also brought congratulations from Boeing’s chief rival, the European consortium Airbus.

"We congratulate them on their authorization to offer and we wish them the best of luck," Airbus Commercial Director John Leahy said in France.

Washington, where Boeing was founded in 1916, was one of 14 states invited to submit bids for the project. The company’s wide-body plant in Everett was selected over three other finalists: Kinston, N.C.; Charleston, S.C.; and Mobile, Ala.

Gov. Gary Locke and the Legislature were determined to win the project, especially since being stunned two years ago by Boeing’s decision to move its headquarters to Chicago.

This summer, they agreed to grant the aerospace industry tax breaks totaling $400 million through 2009 — and potentially worth $3.2 billion over 20 years — if Boeing built the 7E7 here.

Aerospace analyst Paul Nisbet of JSA Research said the decision was widely expected.

"Certainly there is a very skilled work force and a lot of people to choose from," he said. "They are getting one whale of a tax break, it sounds like."

Boeing’s board met in Chicago earlier this week to make the final decision on where to build the plane, which would be Boeing’s first new jet since the 777 program was introduced in 1990.

Using more composite materials than metal, the plane would weigh less and use 20 percent less fuel than other models. It also would have bigger windows and slightly wider aisles and seats than other planes. Boeing would sell the jet as a replacement for the 757 and 767, with greater range to handle long-distance routes.

The jet program still wouldn’t be formally launched until mid-2004, after Boeing gets a read on airline interest, and the 7E7 wouldn’t enter the market before 2008. But the decision to offer it for sale is an important landmark for a company that has been overtaken by Europe’s Airbus consortium.

In recent years, Boeing shelved plans to build a 747X jumbo jet and Sonic Cruiser. Analysts have said that if Boeing does the same with the 7E7, it will lose its remaining credibility in the commercial jet market.

Boeing has been battered by bad news since its move to Chicago in 2001, from the post-Sept. 11, 2001, drop-off in commercial aviation to a series of defense-contracting scandals to the recent departures of chief financial officer Mike Sears, who was fired, and CEO Phil Condit, who resigned.

Since 1997, Boeing’s employment rolls have been cut in half, with about 55,000 currently employed in Washington.

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