| HeraldNet - Snohomish County's online news source |
 FRIDAY, NOVEMBER 20, 2009 4:46 pm |
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 Boeing, SPEEA wrangle over education benefits The Boeing Co. and its engineers union can't agree over education benefits. In September, Boeing said it would make changes to its tuition-reimbursement program this year. Employees will be reimbursed only for work-related courses. And the company will set some tuition caps and require workers in certain educational programs to remain with the company for a set amount of time following the completion of their degrees. At the time of Boeing's announcement, its unions said the changes didn't apply to their members due to labor contracts already in place. Nearly two months later, Boeing and the Society of Professional Engineering Employees in Aerospace remain at odds over the education benefits. The union says Boeing is trying to make cuts to a benefit that's already covered in their contract, thus violating labor law. The company says the tuition reimbursement plan isn't explicitly covered in the contract with SPEEA. In a letter to SPEEA, Boeing's Jeffrey Janders gives union leaders until Nov. 30 to “bargain” over the program. Janders notes that the program is “clearly not in the contract” but could be part of mid-term negotiations if the union wants to do so. In an email to other union leaders, SPEEA's executive director, Ray Goforth, said he had offered to hold off-the-record “discussions” with Boeing but said the union has no duty to bargain a benefit it already has. The two sides seem “poised on the brink” of litigation, Goforth wrote, adding that Boeing “chose the path of conflict.” ... [Read More] E-mail | Print | Comment Dicks: Add $5M to Northrop's tanker bid One of Boeing's biggest supporters in Congress wants to add as much as $5 million to Northrop-EADS' U.S. Air Force tanker bid. The Air Force is trying for the third time to replace its aging fleet of KC-135 tankers. It released its draft requirements for its tanker fleet in late September but immediately ran into troubles with its two bidders. Boeing and its supporters want the Air Force to weigh a trade ruling against Airbus in its competition. EADS is Airbus' parent company. Northrop and EADS are using an Airbus' A330 as the basis for their tanker. Rep. Norm Dicks, D-Wash., is arguing that the Air Force should add as much as $5 million per tanker to Northrop-EADS' bid, according to Reuters. Boeing would build its tanker in Washington. The Air Force says the World Trade Organization ruling is still preliminary, so it won't consider the ruling. Plus, Airbus has a counter-complaint against Boeing pending with the WTO. For its part, Northrop and EADS are upset with the Air Force for giving Boeing its tanker pricing information during the last contest in 2008. The Air Force said the info isn't relevant, but it did ask Boeing to release similar info to Northrop-EADS. Boeing said no. ... [Read More] E-mail | Print | Comment
The Boeing Co.'s first 747-8 Freighter has been painted. The cargo jet left the paint hangar in Everett last night. Painted in a "light" livery -- white with blue accents, the 747-8 Freighter unveiled a new twist on the Boeing Commercial Airplanes livery. It features an oversized "8" on the background of the tail as well as "747-8" on the belly. The light livery, which saves time and expense compared to the full Boeing livery, will remain on the airplane until the flight-test program is completed. After flight test, it will be refurbished and delivered to a customer. Boeing plans to fly the freighter for the first time in early 2010. ... [Read More] E-mail | Print | Comment
Two lawsuits over 787 ‘without merit,' Boeing says The Boeing Co. faces two lawsuits over its delayed 787 Dreamliner. Although the company deems the lawsuits “without merit,” Boeing says it will defend itself “vigorously," according to a filing with the Securities and Exchange Commission. Last week, a firm filed a lawsuit in northern Illinois over the 787. Yesterday, another law firm filed a similar complaint in southern Illinois. Both essentially are complaining that Boeing executives gave misleading statements this summer when they assured investors the 787 would fly by the end of June. Within days of making those statements, Boeing halted the Dreamliner's first flight. Boeing's stock dropped 6.5 percent the first day and another 6 percent the following day. ... [Read More] E-mail | Print | Comment Boeing scores 737 orders in Dubai The Boeing Co. landed orders for its 737 single aisle aircraft on the third day of the Dubai Air Show. Air Algerie placed an order for seven 737-800s, Boeing announced Tuesday. The carrier, based Algeria, will have 22 Next Generation 737s with the new order. "Our purchase of Boeing 737-800s is a natural progression for Air Algérie," said Abdelwahid Bouabdallah, CEO of the carrier. "The 737-800 adds great value to our fleet because it is very high-tech and reliable. Reduced operating and maintenance costs mean our airplanes spend less time on the ground and more time in the air making money." Tassili Airlines, also based in Algeria, also placed an order for 737-800s. "Tassili's selection of the Boeing Next-Generation 737 is a testament to the airplane's versatility, range and other performance factors," said Marty Bentrott, Boeing's sales vice president in the region. "We offered a comprehensive package to support its unique employee-transport needs, including spares, support equipment, ground-handling equipment, tooling and training." Boeing's rival Airbus, which already announced orders for its A320s and A350s, also announced an order for two A380s on Tuesday. The order came from Air Austral, based in Saint Denis, La Reunion. The carrier will configure the superjumbo jet to seat 840 passengers. ... [Read More] E-mail | Print | Comment
Airbus A350 orders top 500 Among the orders that Airbus has collected at the Dubai Air Show is request for A350s that pushes the jet over the 500-order mark. Ethiopian Airlines placed an order for 12 A350 XWBs, which puts the firm order total for Airbus' new jet at 505. “The A350 will serve our market well, and I think this initial order will be the beginning of a very long relationship with Airbus,” said Ethiopian Airlines CEO Girma Wake during an afternoon press conference at the air show. “It is a very good start for a long journey together.” Ethiopian Airlines is the 32nd A350 customer. Airbus also picked up an order for 10 A320s from Yemenia Airlines. And Comlux has ordered another Airbus Corporate Jet. So far, Boeing hasn't announced any new orders at the air show. ... [Read More] E-mail | Print | Comment
The Boeing Co. has finished modifications on two more 787s as the company races to put the Dreamliner in the air by year's end. Over the weekend, workers in Everett finished reinforcing a structural weakness on the the static test aircraft and the second 787 flight test airplane, Boeing said Monday. The company completed modifications to the first flight test aircraft last week. "Our focus now is on completing the static test later this month, which will validate the modification," said Scott Fancher, vice president and general manager of the 787 program. "Concurrently we are restoring the airplanes and completing the functional tests required to fly by the end of the year." Boeing discovered a weakness in the 787's side-of-body area shortly before the jet was supposed to make its first flight in June. The company postponed the Dreamliner's first flight for the fifth time. But Boeing officials say the 787 will fly before Jan. 1 and that the first Dreamliner will be delivered in the fourth quarter of 2010, more than two years late. ... [Read More] E-mail | Print | Comment
Lawsuit brewing over Boeing's 787 The Boeing Co. could face a class action lawsuit over its 787 Dreamliner, reports Dow Jones Newswire. The complaint, filed on behalf of an institutional investor, alleges that Boeing's executives made false and misleading claims about the 787's schedule earlier this year. Boeing has fallen more than two years behind schedule on the 787. The company postponed the Dreamliner's first flight in June, shortly after giving assurances that the mostly composite jet would fly by July 1. Just yesterday, Boeing said it had installed the structural reinforcements on the first 787. Boeing says the Dreamliner will fly by year's end. ... [Read More] E-mail | Print | Comment Are airlines afraid of the number 13? It's Friday the 13th. That led Airline Reporter's David Parker Brown to look into airlines' (and passengers') superstitions about the number 13. He found several airlines, including Air France, Continental, Ryanair and Air New Zealand, do not have a 13th row. Airlines aren't alone in shunning things numbered 13. Many hotels also refrain from using "13" for floor levels. ... [Read More]
E-mail | Print | Comment New problem with 787? Yesterday, the Boeing Co. confirmed that it had finished installing the structual reinforcements needed on its first 787 Dreamliner. Today, the Wall Street Journal, in this story, describes a how a new problem was uncovered with the 787 while fixing the last one. Boeing told the publication that the Dreamliner remains on track to fly by year's end. Dec. 22 is the anticipated date of first flight. In this blog post, Boeing's Randy Tinseth discusses the 787's progress. Several readers question Boeing's process -- of fixing airplane one before validating the fix on the static test plane -- and ask about the WSJ story in the comments section. ... [Read More] E-mail | Print | Comment
Boeing towed its first 747-8 Freighter outside the factory here in Everett on Thursday. “It is very rewarding to see this airplane transition to the flight test phase,” said Mo Yahyavi, 747 program vice president and general manager. Boeing is expected to put its 747-8 Freighter in the air early next year. The first freighter will be delivered to Cargolux. ... [Read More] E-mail | Print | Comment
The Boeing Co. has finished installing the fix on its new 787 jet, which it plans to fly by year's end. “Completing this work is a significant step toward first flight,” said Scott Fancher, vice president and general manager of the 787 program. “We continue to be pleased with the progress of the team and remain confident the first flight of the 787 Dreamliner will occur before the end of the year.” Boeing postponed the first flight of its mostly composite 787 jet in June, after finding a structural weakness in the airplane's side-of-body area. Workers at the company's Everett factory have been modifying the first 787 aircraft to strengthen the side. The modification entails installing new fittings at 34 stringer locations within the joint where the wing is attached to the fuselage. The modifications were completed yesterday, Boeing said. The company expects to complete the installations on the static test airframe and the second flight-test airplane in the coming days. "We will test the modification on the full-scale static test airframe later this month,” Fancher said. “As soon as we confirm the loads are being handled appropriately in the joint we will complete preflight activities on the airplane.” After modifications are complete on the static test airframe, it will be refitted with strain gauges and instrumentation required for testing. Boeing also is restoring access doors, systems, seals and fasteners that were removed from the first 787. When that task is finished, the flight-test team will perform another set of gauntlet and taxi tests to ensure that all systems are ready for flight. Fancher noted that with the exception of a single high-speed taxi test, all remaining flight-test activities have been successfully completed on the first flight-test airplane. Overall, the work on modifying airplanes is progressing well, Fancher said. Boeing has won 850 orders for its 787 Dreamliner and expects to deliver the first aircraft in the fourth quarter of 2010, more than two years late. ... [Read More] E-mail | Print | Comment Boeing to break ground in SC next week The Boeing Co. has scheduled a groundbreaking ceremony next week for its new 787 facility in South Carolina. Last month, Boeing picked Charleston, S.C., as the site of its second 787 assembly line over Everett, the location of its wide body factory and original 787 line. Earlier this year, Boeing bought out supplier Vought's 787 parts factory in Charleston. The groundbreaking ceremony is scheduled for Fri., Nov. 20. Boeing's new facility will be located near the Charleston International Airport. The company intends to have the second line operational in 2011. Boeing's all-new fuel-efficient 787 has won 850 orders. But the company has fallen more than two years behind schedule in delivering the mostly composite Dreamliner. Boeing has said the 787 will make its first flight by the end of the year. For more about the construction jobs, and traffic concerns Boeing's factory is bringing to South Carolina, read this. ... [Read More] E-mail | Print | Comment Boeing brings construction jobs, traffic concerns to SC The Post and Courier has a story this morning on Boeing's new 787 facility in South Carolina. In October, Boeing picked Charleston over Everett as the home of its second 787 production site. The company plans to break ground at its new South Carolina location next Friday. The contractors have been given 22 months to build the factory. That could mean between 600 and 700 construction jobs at the peak, Luther Cochrane, CEO for contractor BE&K told the newspaper. And here's where it gets interesting: Those construction workers will add “to the traffic in an already highly traveled corridor that includes the airport, a major shopping destination, hotels and the Charleston Area Convention Center.” The Charleston County Council is meeting today to determine whether to spend $150,000 for a study on how to address traffic near Boeing's new site. I'm sure many readers will remember that Boeing and local government officials butted heads in the early 1990s when Boeing's 777 expansion meant $50 million in transportation and infrastructure costs. Also check out the reader comments to the Post and Courier story for locals' reaction to the traffic issue and their concerns about who will get those construction jobs. ... [Read More] E-mail | Print | Comment
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 |
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