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Boeing Looking for Round-the-Clock Port for Dreamliner
Boeing's announcement that it was looking for a new final assembly
site for the Dreamliner has stimulated widespread interest. Since
May 16, when the manufacturer issued its criteria for that decision,
Mike Bair, senior VP for the new program says "there are
very few states that haven't asked -- even some that have a hard
time understanding what a port is." Proximity to a round-the-clock
port capable of handling major airplane subassemblies is essential.
In any event, the final assembly line won't employ anything like
the numbers who work on Boeing airplanes today. "The numbers
will be dramatically less, between 800 and 1,200 Boeing jobs,"
says Bair. The Dreamliner will be assembled from large components
"stuffed" with subsystems, and much of that fitting-out
work is likely to be carried be carried out by suppliers.
Both in design and manufacture, Boeing expects suppliers to carry
out more detailed integration work than they have done in the
past. In all, the amount outsourced is likely to be higher than
the 60-65 % that is normal today, and Boeing in-house sources
will have to compete for a place on the program. "90%? I
don't think so," says Bair.
Bair responds circumspectly to questions concerning financial
incentives offered to Boeing by state governments. Kansas has
offered a $500 million bond issue if Boeing places Dreamliner
work in Wichita-and the state would be repaid out of payroll taxes
that Boeing would normally pay, bond or no bond. It's a sensitive
issue for Boeing, which has long protested about alleged subsidies
to its competitor.
"It's important to realize that Kansas was not so much about
the Dreamliner as about our operation in Kansas, trying to position
themselves to be a preferred supplier," says Bair. In-house
Boeing operations are being assessed in competition with outside
suppliers. The bond discussions "were an independent initiative
by [VP and general manager of the BCA Wichita Division] Jeff Turner,
to make sure he was as well positioned as other partners,"
notes Bair, adding, "We don't have any specific criteria"
for state aid. "We're not out looking for who can write us
the biggest check. This is a 20-, 30-, 40-year program, and what's
important is the ongoing business climate."
By Bill Sweetman
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