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Thursday, November 14, 2013

Boeing CEO ‘Open to All Options’ on 777X

Woodrow Bellamy III

Boeing is pursuing "all options" said CEO Ray Conner for its 777X program after the International Association of Machinists and Aerospace Workers (IAMAW) rejected its offer to workers to build the aircraft at its Puget Sound, Wash., facility. 
[Computer rendering of Boeing 777X. Photo, courtesy of Boeing.]
According to a statement, 67 percent of IAMAW members rejected Boeing's offer of an eight-year contract extension to build the 777X in Puget Sound. Under the proposed contact, Boeing would stop contributing to the machinists' pensions in 2016, a provision which explains the group’s dissatisfaction with the contract.
"Our goal was two-fold: to enable the 777X and its new composite wing to be produced in Puget Sound and to create a competitive structure to ensure that we continue market-leading pay," said Ray Conner, president and CEO of Boeing.
Without the terms agreed on the contract extension, Conner said Boeing has "no choice but to open the process competitively and pursue all options for the 777X."
According to RBC Capital Markets analyst Robert Stallard, Boeing is expected to launch the 777X at the Dubai Airshow in the United Arab Emirates next week. 
There are currently two planned variants for the 777X, the 777-8X in a 350-seat configuration and the 777-9X in a 400-seat configuration. The wide-body jet will be a competitor to the Airbus A350 XWB, which is scheduled to enter into service next year.


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