SF Gate: Boeing executive visits rival Airbus headquarters

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This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2001/12/18/f=
inancial1023EST0060.DTL
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Tuesday, December 18, 2001 (AP)
Boeing executive visits rival Airbus headquarters
JAMEY KEATEN, Associated Press Writer


   (12-18) 12:47 PST TOULOUSE, France (AP) --
   Setting aside rivalry and competition, Boeing's commercial aircraft chief
ventured into the home turf of Europe's Airbus for cordial talks on ways
to improve airplane security after the Sept. 11 attacks.
   At a news conference on Tuesday, Boeing's Alan Mulally said he and Airbus
chief executive Noel Forgeard also discussed efforts to help speed the
recovery of the battered airline industry and reduce environmental damage
and noise caused by planes.
   The two executives met Monday at Airbus headquarters in the southern city
of Toulouse. Mulally spoke to reporters a day later at a Toulouse business
school.
   Despite the competition between the world's two biggest commercial jet
makers, Mulally said he and Forgeard found common ground on safety issues.
   "We had a very productive meeting with Mr. Forgeard and his Airbus team =
to
do what we can to further improve the security of the transportation
system," Mulally said.
   Forgeard recently criticized the U.S. government for what he called its
unfair policy of subsidizing Boeing after the Sept. 11 attacks. In an
interview published in Les Echos, a French financial daily, Forgeard
called the U.S. aid a "veritable Boeing Marshall Plan."
   Mulally said it was "absolutely not true" that the government support is
unfair.
   "We follow very clear rules," he said.
   The Boeing executive sought to put to rest tensions between the two
companies.
   "We are not the evil empire, and we really are pretty nice people,"
Mulally said. It was his second visit to Airbus headquarters.
   The two executives also discussed new locks for cockpit doors and special
surveillance cameras for planes.
   "As far as the industry goes, we work together on (safety) continuously,
but the horrible events of Sept. 11 have accelerated our thinking on
that," Mulally said.
   Mulally sidestepped questions about Airbus' A380, its planned 555-seat
airplane.
   "I would like to talk to about the 747. We have a lot of experience with
large airplanes," he said.
   He added: "We think the average size of airliners will continue to
decrease."
   Mulally also touched on Boeing's program for the Sonic Cruiser -- a 200-
to 250-passenger airliner that would fly higher and faster than current
airliners -- saying that the program is "going very well."
   Both companies have been hard-hit by the fallout from Sept. 11.
   Airbus plans to cut 500 jobs in Britain and will reduce the total number
of employee work hours by 20 percent to cope with declining demand. The
company also recently lowered the number of commercial aircraft it expects
to deliver in 2002 to 300 from 375 before the attacks. Forgeard has said
it is too early to provide a forecast for 2003.
   Chicago-based Boeing Co. has said it plans to slash as many as 30,000 jo=
bs
by the middle of next year.
   Boeing also plans to cut passenger jet production rates in half by
mid-2002. It will deliver 522 jetliners this year, about the same number
it had forecast before the attacks, but only 350 to 400 next year and even
fewer in 2003.

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Copyright 2001 AP

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