Boeing to build new jet in U.S., lists demands

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Boeing to build new jet in U.S., lists demands

SEATTLE (Reuters) =97 Boeing said on Friday that it would build its proposed=
=20
super-efficient 7E7 jetliner in a U.S. location offering good weather,=20
ample facilities, skilled labor, low taxes, and relaxed business=20
restrictions. After briefing officials from Washington state who hope to=20
keep the world's biggest jet maker at home, Boeing laid out a laundry list=
=20
for competing sites to mull over as it solicits bids for the 7E7 assembly=20
site, a mid-sized jet planned for delivery in 2008. "We will do everything=
=20
in our power to win the Boeing 7E7 final assembly so we can keep and grow=20
Boeing jobs in our state," Washington Gov. Gary Locke said in a prepared=20
statement. "The criteria that Boeing released today include many of the=20
issues that Washington is already working on or has already completed."

Gov. Locke Thursday signed a bill easing shoreline rules to help the city=20
of Everett build a rail-barge terminal to ship large airplane parts for=20
assembly at Boeing's wide-body jet plant =97 the likely home for a=20
Washington-based 7E7. Even if it completes every task on Boeing's wish=20
list, Washington still might not house the plant that builds the 7E7, a=20
mid-sized jet that would slash airline operating costs by up to 20 percent.=
=20
The "E" is for "economy." And even if Boeing builds the 7E7 in Washington,=
=20
it may not boost the company's local payroll of some 58,000 workers.=20
Streamlined production and increasing use of subcontractors will slash the=
=20
in-house 7E7 labor force to perhaps hundreds, from the thousands working on=
=20
current Boeing models.

Boeing has cut some 35,000 commercial jet workers, including 22,000 in=20
Washington, as the Sept. 11 attacks and other events have crippled the=20
airline industry. Other key Boeing concerns included: Costs of land and=20
construction; proximity to runways and major seaports; road and rail=20
systems; quality of public schools; employee absenteeism rates; and natural=
=20
disasters including earthquakes, tornadoes and hurricanes. Boeing has not=20
listed any other potential sites, but officials in Texas and Arizona have=20
publicly expressed interest and some observers have mentioned Alabama as a=
=20
candidate.

Company officials originally said they would even consider a non-U.S.=20
location for the 7E7. Seattle-area politicians, stung by Boeing's decision=
=20
to move its headquarters to Chicago in 2001 and shift thousands of jobs to=
=20
contractors elsewhere, have attempted to address many of the issues the=20
company has raised. Boeing officials and other big businesses have chafed=20
at the state's failure to ease unemployment and workers compensation=20
burdens or pass tax increases to fund roadway improvements. Washington=20
voters have rejected business-backed tax reforms. Boeing is battling=20
European rival Airbus SAS for dwindling aircraft orders and plans to=20
deliver 280 jetliners this year, which would be its lowest total since=20
1996. Airbus plans to build 300, which would push it past Boeing for the=20
first time ever.


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