=20 ---------------------------------------------------------------------- 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/2003/10/16/n= ational1736EDT0788.DTL ---------------------------------------------------------------------- Thursday, October 16, 2003 (AP) Boeing to shut down 757 jetliner production in late 2004 HELEN JUNG, Associated Press Writer (10-16) 18:12 PDT SEATTLE (AP) -- Boeing will shut down its 757 passenger jet production line next year, after building more than 1,000 of the jetliners over the past two decades, the company said Thursday. The announcement came only hours after Continental Airlines said it want= ed to convert six orders for the jet to less-expensive 737-800 jetliners. "This decision reflects the market reality for the 757," said Alan Mulally, Boeing Commercial Airplanes chief executive. He said the plane would be replaced by Boeing's newest 737s and its planned 7E7 jetliner. The single-aisle 757s once were popular for their fuel-efficiency and versatility in handling everything from short runways to high-altitude airports, all while meeting noise restrictions. But the terrorist attacks of 2001 threw the jet's biggest customers -- U.S. airlines -- into turmoil. The jet also faces competition from the 737, which has grown in size to handle more passengers while costing roughly $20 million less per jet. There have been only five new orders for 757s in the last 21 months, and the backlog of 757s remaining to be built has shrunk to 18. "It's been thought for a couple years now that the 757 program could be shut down due to lack of new orders," said Peter Jacobs, an analyst with Ragen MacKenzie in Seattle. "It was just a matter of whether it was next year or three years from now." Boeing's proposed new 7E7 jet is also being touted as a possible eventual replacement for the 757 and the widebody 767, making some airlines less willing to buy a jet on its way out. Boeing did not immediately say what effect the production halt might have on employment. Since the terrorist attacks, Boeing has eliminated 35,560 jobs, mostly through layoffs, and expects that total to reach 40,000 by the end of the year. Boeing will take a pretax charge of $184 million, or 14 cents per share, through 2005 for ending the 757 line. Boeing shares rose 45 cents Thursday to close at $37.45. The news was announced after the market closed. On the Net: www.boeing.com/flash.html =20 ---------------------------------------------------------------------- Copyright 2003 AP