SF Gate: Boeing board readies 7E7 decision

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Sunday, December 14, 2003 (AP)
Boeing board readies 7E7 decision
DAVE CARPENTER, AP Business Writer


   (12-14) 11:25 PST CHICAGO (AP) --
   Twice in the past three years, Boeing Co. has halted new airplane progra=
ms
before takeoff: the super-sized 747X and the fleet Sonic Cruiser.
   This time, the fuel-efficient 7E7 Dreamliner appears to have a strong
chance of getting off the ground.
   Boeing's board of directors is widely expected to sign off Monday at the
end of a two-day meeting in Chicago on offering the 7E7 for sale to
airlines -- a step that could lead to a formal launch of the program in
mid-2004, assuming there is sufficient demand from customers.
   Boeing officials remained tightlipped about the 7E7 approval process and
said they would not even confirm when the board meeting had begun Sunday
as planned.
   But industry observers have said they would be shocked if Boeing didn't =
go
ahead with the program, citing not only their lack of a new airplane
program for the past decade but the dramatic gains that rival Airbus has
made in taking over the market-share lead in commercial airplanes this
year. And newspaper reports have said Everett, Wash., has been recommended
by an executive team as the 7E7 assembly site.
   "The only doubt is what kind of launch we're talking about here," aviati=
on
analyst Richard Aboulafia of the Teal Group said. "Boeing has always done
a real launch. But McDonnell Douglas (which it acquired in 1997) did a
bunch of halfhearted, highly conditional launches in the '90s where things
didn't go anywhere."
   Boeing is led for the first time by a McDonnell Douglas veteran, Harry
Stonecipher, who returned from retirement this month to take the CEO's
post after a rash of ethics scandals within the company's defense business
prompted Phil Condit's resignation.
   Stonecipher voiced his strong support for the 7E7 program on the day he
took over. He is expected to try to assuage any concerns among the other
10 board members about whether Everett is the best site, given the
potential for labor problems which could be greater than elsewhere.
   Boeing spokesmen have said that if there is positive news from Monday's
board meeting, company executives would first announce the decision to
employees on Tuesday in Seattle.
   Boeing expects to plan three versions of the 7E7. The standard model wou=
ld
carry 200 passengers for more than 8,900 miles; a stretch model would have
a capacity for 250 passengers and go 9,500 miles, and a short-range
version would have room for 300 passengers and fly 4,000 miles.
   About 800 to 1,200 jobs are expected to be created for assembly.

On the Net:
   www.boeing.com

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Copyright 2003 AP

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