Stage set for battle to woo 7E7

The Boeing Co. laid out its blueprints yesterday for a momentous decision that could determine its long-term future in the Puget Sound region, and that of the tens of thousands of men and women who build Boeing airplanes here.

- Summary of selection criteria
- States fight to attract new jobs

Publicly disclosing the criteria that it will use to evaluate possible final assembly sites for a superefficient plane known as the 7E7, Boeing essentially started the clock ticking on a competition that is expected to lead to a decision late this year on where to build the company's first all-new jetliner since the 777.

States or communities that want to be considered for the site, which Boeing said could mean 800 to 1,200 jobs, have just over a month -- until June 20 -- to submit formal proposals.

"I think we have a very good chance to compete, but I wish we didn't have to compete at all," said Rep. Norm Dicks, D-Wash., one of Boeing's fiercest allies in Congress.

Dicks and other Washington state elected officials, as well as union leaders, were briefed by Boeing on the site-selection criteria.

Like other members of the state's congressional delegation, Dicks promised to do whatever it takes to persuade the company to build the 7E7 widebody jet in the Puget Sound area. He conceded that if Boeing goes elsewhere, it will devastate the region's economy and possibly doom the region's signature industry.

Boeing said the site-selection criteria will focus on such things as transportation, taxes, community and local government support, labor, site-preparation costs and the overall cost of doing business.

POLL

What should the state do to persuade Boeing to build the 7E7 in the Puget Sound region?

53.3%

It should offer whatever it can

17.4%

It has given enough already

29.3%

It should try to show itself in the best possible light without giving more

Total Votes: 1490

Proximity to a water port capable of round-the-clock operations is another important criterion. New ways of manufacturing the widebody 7E7 jetliner will require that big pieces of the plane be brought in by ship and then transferred to the final assembly site.

Everett, where Boeing now builds its 747, 767 and 747 widebody jets, would likely be the home of the 7E7 should Boeing decide to build the plane here rather than in another state -- Boeing yesterday ruled out a final assembly site overseas.

The Everett factory already appears to meet many of the Boeing criteria, but company executives have made it clear that Washington state needs to do much more to improve the region's competitiveness.

Boeing's Machinists union, the most powerful within Boeing, plans to launch a community outreach campaign to emphasize the importance of the new plant to all residents.

The Society of Professional Engineering Employees in Aerospace had a mixed response, upset that the company was turning to outsiders for traditional Boeing work.

"I just think it's not respectful to the people who made The Boeing Co. what it is today," said SPEEA Executive Director Charles Bofferding. "The best bidder gets Boeing heritage."

The stakes could not be higher for the region, which remains the headquarters for Boeing's commercial airplane operations even though the aerospace giant moved its corporate headquarters from Seattle to Chicago two years ago.

Boeing has said it has no plans to move existing jetliner production out of Washington should it pick another state to assemble the 7E7. But many industry experts believe it would be highly unlikely that Boeing would choose to build any future models beyond the 7E7 in the region once the 7E7 die is cast elsewhere.

Other than the McDonnell Douglas programs it inherited through a merger, Boeing has built all its jetliners in Renton or in Everett since the 707 beginning in the 1950s.

Despite an industry downturn that has seen Boeing cut more than 31,000 jobs since the Sept. 11, 2001, terrorist attacks, Boeing still employed 57,000 workers in the state as of May 1, mostly in commercial airplanes. That's down from 103,500 workers in 1998.

"Boeing Commercial Airplanes is proud to call Washington home," Alan Mulally, president and chief executive of the commercial operations, said in a letter to the state's elected officials as part of yesterday's criteria briefings. Mulally did not brief officials personally.

But Mulally, Boeing's top executive in Washington state, made it clear that Boeing is looking for the most competitive place to build the 7E7, even if that means leaving its commercial jetliner roots for the first time.

"We are up against a competitor that brings a strong product line and the support of the European Union to every competition," Mulally said in his letter, referring to rival Airbus.

"We will compete and win with the 7E7. Customer interest is high. But we must do things differently. We must do things better. And we intend to select a location for final assembly that gives us the best chance to bring the 7E7 to market successfully."

Boeing is now working with some 40 airlines around the world to define the new plane's configuration, and hopes to be ready to seek board approval by the end of the year to go forward with the program.

Under that schedule, the 7E7 would enter service with airlines in 2008.

Boeing has forecast the market for the 7E7 could be as many as 2,000 to 3,000 planes over the next several decades. It would replace Boeing's existing 757 and 767 jets.

Many states and communities already have contacted Boeing to say they want to be considered for the 7E7 final assembly site.

They must now submit a formal application as part of an RFP, or request for proposal. This will be done through McCallum Sweeney Consulting Inc., a Greenville, S.C., firm that specializes in site selection.

Although Boeing already builds jetliners in Western Washington, the state must also make a formal proposal to be considered for the 7E7 site.

"We want to make the playing field level for everyone," a Boeing spokeswoman said.

In his letter, Mulally made clear Boeing does not want the 7E7 site-selection process to become a public beauty contest. That happened in 2001 when Boeing publicly announced it would choose Dallas, Denver or Chicago as its new world headquarters.

The 7E7 site-selection competition will be kept confidential, Mulally said.

"Out of respect for potential participants, we will not comment publicly on the proposals we receive, nor will we attempt to negotiate better terms via the media," Mulally said.

But with so much at stake and so many powerful politicians likely to be involved at the highest levels of whatever states end up being considered, it remains to be seen just how quiet Boeing can keep the competition that is about to unfold.

WHAT PEOPLE ARE SAYING

Politicians, labor leaders, business owners and people in the community react to Boeing's criteria for building its next plane:

Mark Blondin, president, International Association of Machinists District Lodge 751: "You look down the criteria, about half of it is already here, better than half."

Blondin ticked off the region's three airports -- Seattle-Tacoma International Airport, Paine Field and Renton Municipal Airport -- its deep-water ports and the army of highly skilled laid-off Boeing workers.

"They have got a heckuva of a labor force."

Steve Vergala, who works at Boeing's Everett plant: "We can do all of this there is no doubt ... I think it's easier for us to do it than anybody else."

Michael Moshowitz, smoking outside of Jet City Espresso in Renton: "I say they've gotten more than enough money. When does the blackmail end? ... The corporate heads have robbed us blind for the last 20 years. It's shameful, it really is."

Karin Zaugg, spokeswoman for the Greater Seattle Chamber of Commerce: "The criteria list doesn't have a whole lot of surprises, but certainly reaffirms the important issues that we in the business community have been working on."

Everett carpet store manager Scott Widen: "Too many people have been taking them for granted for too long," he said. "Shoot, they oughta be here, and we should have given them stuff long ago."

Ted Abernethy, owner, Motorcycle Works in Renton: "I would hate to see Boeing leave Renton," he said. "I don't mind paying higher taxes if it keeps the workers in the area. ... If you ask any retailer around here, you'd be hard-pressed to find anyone whose business is up. ... The city has got to do what it can to keep these kind of jobs in the area."

Seattle City Council President Peter Steinbrueck: "This might provide some incentive, it's a call to action," he said, adding that transportation issues are crucial and could be the most difficult to resolve. "I think we could do a lot better to show we are committed to keeping Boeing in our region. ... We are still a Boeing town in many respects."

Gov. Gary Locke: "The criteria that Boeing released today include many of the issues that Washington is already working on or has already completed," Locke said. "There were no surprises in the list."

Sen. Maria Cantwell, D-Wash: "The stakes are high, not just for jobs at Boeing, but for the health of our economy. It will be a challenge to develop a plan that satisfies the criteria Boeing laid out today, but it is a challenge we can meet."

Rep. Jeff Morris, D-Anacortes: Morris said that Boeing's June 20 deadline for proposals gives Washington an advantage, since leaders have been working on Boeing's needs for years. "That gives us a huge credit for the infrastructure that we've already built in the state."

Sen. Patty Murray, D-Wash "I expect that the competition to build the 7E7 will be stiff. Every community in America would love to build this plane, and some state legislatures have already taken steps to lure the 7E7 to their state."

JoAnn Morken, waitress at an Everett restaurant: "I guess I'd have to say give them what they want. When I think of all this I think of the people who have invested so many years in that company. If it were to move, where would they go, what would they do?"

More headlines and info from Auburn, Everett, Kent, Renton.

P-I Washington correspondent Charles Pope and P-I reporter Paul Nyhan contributed to this report. P-I aerospace reporter James Wallace can be reached at 206-448-8040 or jameswallace@seattlepi.com

Add P-I Business headlines to