SFGate: Boeing to end production of its 717 passenger jet next year

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Friday, January 14, 2005 (AP)
Boeing to end production of its 717 passenger jet next year



   (01-14) 02:43 PST LONG BEACH, Calif. (AP) --
   Boeing Co. will end production of the 717 jet, its smallest passenger
plane, sometime next year, company representatives said.
   The aerospace company has orders for 18 more of the 106-seat jets, and
will shut down the Long Beach assembly plant that makes them in May 2006
or several months thereafter, said Steve Chesser, Boeing's manager of
government and community relations in Long Beach.
   Airlines looking for short-haul planes have in recent years purchased le=
ss
expensive 50- to 90-seat jets from competitors of the Chicago-based
company.
   "The projected demand for our airplane will not sustain a profitable
production line," Pat McKenna, vice president and general manager of the
717 program, told workers in a memo obtained Thursday by the Long Beach
Press-Telegram.
   The first 717 entered service with AirTran Airways in 1999, and more than
130 of the jets have been delivered to customers including Hawaiian
Airlines and Midwest Airlines.
   The program took a blow when Air Canada decided in December 2003 not to
buy the plane. Officials had hoped an order would lead to sales among
other members of the Star Alliance, a group of North American and European
airlines.
   Mike Boyd, an airline industry analyst with The Boyd Group in Evergreen,
Colo., said elimination of the plane was "sort of expected. It's a
difficult plane to sell."
   After the Sept. 11 terrorist attacks, Boeing slowed production of the 717
to one a month to wait out a slow market. Thirteen models were sold in
2003 and 12 last year. Despite accompanying layoffs, Boeing remains Long
Beach's largest private employer. More than 10,000 people produce the C-17
military cargo plane and do other commercial jet work at various plants
near the city's airport.

On the Net:
   www.boeing.com

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Copyright 2005 AP

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