Boeing 7E7 team favors Washington site

Report: New jet likely to be made in Everett

? A Boeing Co. executive team has concluded that the 7E7 Dreamliner commercial jet should be assembled in Everett, Wash., The Seattle Times reported in a copyright article Friday.

Citing an unnamed insider familiar with the team and its eight-month nationwide search, The Times reported that Everett, where Boeing now builds its entire widebody line of 747s, 767s and 777s, was chosen over Kinston, N.C.; Charleston, S.C.; and Mobile, Ala.

The same source has provided accurate information about other important decisions in recent months, according to the article.

The assessment team is headed by Alan Mulally, chief executive of Boeing’s commercial jet subsidiary. Mulally is a Lawrence High School and Kansas University graduate.

Thomas Downey, vice president of communications for Boeing Commercial Airplanes, would not comment on the report or say whether the passenger and cargo jet manufacturing subsidiary had settled on a site recommendation.

“No decision (on where to assemble the plane) has been made, and no decision will be made until the results of our site evaluation are fully vetted with our board of directors,” Downey told The Times.

According to the article, the executive team’s evaluation was prepared for a meeting of Boeing’s board of directors on Dec. 15 at corporate headquarters in Chicago and for review by the company’s new chief executive, Harry C. Stonecipher, who visited Seattle on Wednesday.

Stonecipher’s visit followed close on the heels of the resignation of Philip M. Condit as Boeing CEO amid concern over the methods the company used to secure a lucrative Pentagon contract for Air Force tankers using the 767 airframe.

Assembling the 7E7 in Everett, about 25 miles north of Seattle, would save thousands of jobs in the Puget Sound area.

Nico Buchholz, left, a vice president of Deutsche Lufthansa AG, and Peter Gardner, a vice president at Cathay Pacific Airways, talk about the proposed Boeing 7E7 jet at a news conference Nov. 13 in Seattle. A Boeing executive team reportedly wants to have the new jet assembled in Everett, Wash.

In an analysis of taxes, transportation, facilities, equipment and labor at each site, Everett had higher costs than the other sites in every category except facilities, according to The Times.

Nonetheless, Everett remained competitive because of a $3.2 billion incentive package that was enacted by the Legislature and signed by Gov. Gary Locke in June.

That package cut the estimated advantage of Kinston — the lowest-cost site, according to the report — to roughly $300 million over 20 years out of a total development cost pegged at $7 billion to $10 billion.

The inside source told The Times the assessment team also was concerned about the affect on morale in the company’s Puget Sound work force, which has been reduced by 26,000 jobs since 2001.

Another factor, according to the article, was the state’s congressional delegation, which has provided critical support for Boeing on a number of fronts, including the $22 billion tanker deal.

The Boeing board is set to hear a presentation of the case for the new plane from Michael B. Bair, head of the 7E7 program, who in turn is expected to get formal approval to offer the plane for sale to airlines.

Boeing officials have said they planned to announce a decision on a 7E7 assembly site by the end of the year, but more recently Bair and others have said it might be delayed until sometime next year.