NYTimes.com Article: Boeing Board Quiet on 7E7 Decision

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Boeing Board Quiet on 7E7 Decision

December 15, 2003
 By THE ASSOCIATED PRESS





Filed at 12:58 p.m. ET

CHICAGO (AP) -- Boeing Co. kept a tight lid Monday on a
much-awaited decision by its board of directors to proceed
with the new 7E7 jet, saying no announcement was planned
until a day later.

With the board gathered to meet for a second day in
Chicago, all signs continued to point to a go-ahead to
offer the planned new fuel-efficient aircraft for sale, and
to selection of Everett, Wash., as the assembly site.

Boeing spokesmen reiterated that if there was positive news
from Monday's board meeting, company executives would make
the first announcement of the decision at a special
gathering of employees on Tuesday in Seattle.

``If we do have news to share, it will be done out of
Seattle,'' spokesman Ken Mercer said. ``But there will be
nothing sooner than Tuesday.''

He confirmed that the 11-member board met Sunday at the
company's downtown headquarters building as scheduled and
would be in session again Monday, but declined to discuss
timing of the meeting or vote or any other details.

Boeing has not approved an all-new airplane program since
the 777 in 1990. Pressure to commit to the 7E7 has
intensified since the aerospace giant pulled away from
launching the 747X and the Sonic Cruiser in the past three
years, even as rival Airbus was pulling even in the
commercial airplane market Boeing has long dominated.

Analysts say Boeing can ill-afford to turn its back on yet
another new plane -- especially one that seems to have
solid market potential. New CEO Harry Stonecipher, a
veteran board member, seemed to signal similar thinking
when he strongly endorsed the building of the 7E7 on his
first day in the top post this month.

Everett reportedly was chosen by a team of Boeing
executives over Kinston, N.C.; Charleston, S.C.; and
Mobile, Ala., after an eight-month site selection process,
according to recent newspaper reports in Seattle, where
Boeing's commercial airplane division is based. Everett is
located 25 miles north of Seattle.

Further details about the plane and the assembly process
are expected on Tuesday, when Stonecipher is expected to
appear along with commercial airplanes chief Alan Mulally
in Seattle.

Offering the 7E7 for sale is the first of two steps needed
to go ahead with the airplane. If enough customers are
lined up, the board would then formally launch the program
in mid-2004, clearing the way for the mid-size jet to enter
service in 2008.

Boeing's stock rose 31 cents to $39.68 a share in morning
trading on the New York Stock Exchange.

^------

On the Net:

www.boeing.com


http://www.nytimes.com/aponline/business/AP-Boeing-7E7.html?ex=1072514849&ei=1&en=30d1b98b1b317497


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