Boeing turns to selling the safety of flying

By Allison Linn

Associated Press

SEATTLE — Even as executives at Boeing Co.’s Commercial Airplanes division were preparing to lay off as many as 30,000 people, the nation’s leading airplane maker was aggressively working this week to revitalize the airline industry — and get itself back on track.

Boeing’s plan is partly about hard and fast solutions such as redesigning airplanes to prevent hijackings and helping airlines get federal aid. But perhaps the most important tactic for revitalizing the company is much more subtle: Boeing has to assure travelers that flying is safe.

"The best thing we can all do is go take an airplane trip," Alan Mulally, president and chief executive of Commercial Airplanes, based in Renton, told reporters a week after four Boeing jets were hijacked and used in the deadly terrorist attacks.

It was one of several public appearances in which an upbeat Mulally touted the safety of airplane travel while acknowledging that many people are shocked and scared.

"I’ve been designing airplanes for 31 years, and it’s been my dream and I’ve lived my dream," he said. "And I’ve never in my wildest dreams believed (an airplane) could be used as a weapon."

So far, few seem to be heeding his call to the airports. In a speech to the Greater Seattle Chamber of Commerce a day later, Mulally said most major airlines were flying less than 80 percent of their total schedules — and most of those airplanes are only about 30 percent full.

The already struggling airline industry is now in a crisis. Airlines have announced plans to lay off tens of thousands of workers, predicted billions of dollars in losses and prompted one of Boeing’s biggest layoff announcements.

The aerospace industry has dealt with a fear-based crisis before. During the Gulf War, a fear of traveling led to dramatically reduced demand for about 15 months.

In response, Boeing partnered with airlines and travel associations to launch a formal campaign about the safety of air travel, spokeswoman Susan Bradley said.

Bradley said the company may work with others in the industry for another such campaign, although it’s too early to know what form such plans may take.

Also in Washington, D.C., Boeing is helping the airlines’ effort to get federal financial aid to survive the crisis. Spokesman Tim Neale characterized the efforts as informal.

"We’re really out there just reinforcing the message to members of Congress that the crisis for airlines is very real," Neale said.

Boeing Chairman Phil Condit also sent a letter to President Bush in support of the airlines, he said.

The company has chosen to support the airlines’ bid for aid rather than seek aid itself, in part because Boeing is not facing such dire financial problems, Neale said.

Mulally said the company believes airlines must be healthy for Boeing to survive.

Some analysts contend Boeing’s plan for revitalization is even more subtle: It lies in the layoff announcement itself.

Richard Aboulafia, an aviation analyst with the Teal Group, said he didn’t believe Boeing would lay off 30,000 workers — and he still doesn’t believe it now.

"It’s to their advantage to announce a worst-case scenario," he said. "One, you send a positive signal to Wall Street that you’re concerned about profitability. Two, you send a signal to workers and their unions that they’re no longer in the driver’s seat. … And three, you send a signal to government that you need help."

Aboulafia does not dispute that the aviation industry is in a grim position and that Boeing will take a blow, too. But he questions whether Boeing will really have to reduce its commercial division staff by 20 to 30 percent, as the company has predicted.

Meanwhile in Washington, Bush signed a $15 billion aid package Saturday for the nation’s airline industry, which has suffered mounting economic losses since the Sept. 11 terrorist attacks.

The legislation "will provide urgently needed tools to assure the safety and immediate stability of our nation’s commercial airline system," Bush said in a statement.

The signing came less than 24 hours after the House voted 356-54 Friday night to complete congressional approval of the legislation. It had cleared the Senate 96-1 earlier Friday.

The legislation was opposed by labor groups and Democrats who said it ignored the tens of thousands of Boeing and airline workers who will be laid off since the nation’s worst experience with terrorism.

On the Net: Information on the bill, HR 2926, can be found at thomas.loc.gov