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Boeing wants to finalize the divorce

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Old 30th Oct 2003, 22:47
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Angry Boeing wants to finalize the divorce

Boeing wants to finalize the divorce
Seattle Post-Intelligencer 10/30/03
author: Chi-Dooh Li
(Copyright 2003)




Repugnant. Distasteful. Unseemly. Humiliating.

Those are a few of the words that describe the farcical "Joe Millionaire" script that The Boeing Co. has written for the states of Washington, Texas, Alabama, California, Kansas, Indiana and who knows how many other suitor states competing to provide the home for assembling the new 7E7 airliner.

Dutifully playing by that script, Gov. Gary Locke and his counterparts gussy up and parade themselves before Boeing, each cooing sweet and tender words of tax relief, expedited permits, low-cost power and undying devotion.

Washington state has as much chance to win this sham of a contest as an elderly widow laying on thick makeup and bright red lipstick to win the love of a young gigolo who has not the slightest intention of a committed relationship.

By moving its corporate headquarters to Chicago, Boeing has already told us loud and clear that its long-time love affair with Seattle and the Puget Sound region has come to an end.

In matrimonial terms, Boeing has already divorced us.

Sure, they still have assembly plants in Everett and Renton. But expect more and more of the work to be done elsewhere, including overseas.

Watch closely, and you'll see Boeing acting like the husband who has found a new love, who can hardly wait to extricate himself completely from the wife he is abandoning.

Last month our overeager governor jumped the gun and announced that our state had made the final cut for the 7E7. Boeing promptly denied even the existence of a short list.

A few days later, just to remind us the love really has gone cold, Boeing's commercial airplane chief Alan Mullaly uttered four unforgettable monosyllabic words to the cream of the Seattle business establishment gathered at a Rotary Club luncheon: "I think we suck."

If you're not into current lingo and don't know what that charming little expression means, let me translate: "You're really ugly. You've got a face no one could love."

The grim probability is that years before the public announcement of its corporate move, Boeing had come to a strategic conclusion that it could no longer thrive and compete in this state.

All the desperate attempts by the governor and Legislature to put together a sweetheart deal for the 7E7 will be for naught. The recently rejected transportation tax package, even had it passed, would still have been far short of what Boeing and others regard as vital to the economic health of our state.

The recommended actions by the governor's Competitiveness Council, considered by many as the essential checklist for restoring a healthy business environment, only address symptoms of our state's malaise.

The root problem is that we have become a selfish and capricious people.

We righteously decry special interests, but by our ballots on such issues as the transportation tax package and rolling back auto license taxes, too many of us vote only for our self-interest.

We've lost our sense of a greater common good.

In the process, we have become unwilling or unable, as a people, to make the hard and sometimes sacrificial decisions required so that Boeing would never have moved in the first place, and so that our state would be a place where other businesses would want to locate.

Things will get a lot worse in transportation, higher education and K-12 funding and other essentials before they get any better.

We might blame it on the lack of strong, visionary, statesmanlike leadership. But through the initiative process, we have effectively stripped from our elected officials the ability to lead in any meaningful sense of the word.

Any significant legislative solution carefully knit together by the governor and Legislature to address the serious problems we face is only one Tim Eyman initiative away from being completely unraveled.

What business looking to make multibillion-dollar capital investments can live with that kind of uncertainty?

The challenge for this and the next generation of political leadership in our state is to find a way to inspire and rekindle the public spirit now buried deep in the recesses of our civic souls.

We need to be challenged to look far beyond ourselves if we are to face up to the tough and costly choices involved in rebuilding our transportation infrastructure, funding our educational system at all levels, revamping our patchwork taxation schemes and streamlining our regulatory systems.

Which one of us in this state does not wish that some day, the Joe Millionaire script can remain the domain of that tawdry genre known as reality television instead of the real-life burlesque that it now is with the 7E7 competition and with other projects in the future?

Chi-Dooh Li is a Seattle attorney.
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Old 30th Oct 2003, 22:59
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Chi-Dooh Li is a Seattle attorney.

No surprise he missed the MAIN reason Boeing is moving: Ranier may erupt.

I talked with Gene Stewart (N700GS) the lead SWA Mechanic/Tech guy who spent two years in SEA during 700 development. He said most of that time they were on volcano watch. Computer projections show that if the West face fails (believed to be the most weak) the resulting mud and ash flow will fill the valley that Renton sits in with 14 feet of material. It will wreak total havoc on the environment in SEA and any commercial concern there, like Boeing, will be brought to a standstill with much damage to facilities, employees and product.

Boeing is distributing its production base to escape the inevitability of the SEA environment. After the earthquake in 2001 Boeing found 1/3 of their buildings condemned.

SEA is not a friendly place for Boeing. Irrespective of Mr. Li's arguments, their move is a matter of self preservation.

PT
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Old 30th Oct 2003, 23:06
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Never mind - you don't get many earthquakes, volcanoes or tidal waves in Toulouse!

Just plagues of frogs?
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Old 30th Oct 2003, 23:13
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The volcanic imperative is a forceful argument. On this point:
We might blame it on the lack of strong, visionary, statesmanlike leadership. But through the initiative process, we have effectively stripped from our elected officials the ability to lead in any meaningful sense of the word.
I wonder if the attorney has considered asking the people who play the stock exchanges, if they might not ease up a bit easier on Boeing?

After all, if they did not demand such a high rate of return. If they did not ask for a quick profit from a long term business, then Bowing would not need to find so many ways to save money, to keep it's figures looking good.

In the recent thread about 7E7 being manufactured around the world and only assembled in the USA, it comes down to the same thing. If they move to other locations, they can get funding, rebates and (almost certainly) start new staff on lower priced salaries.

Volcano? Yes.
Money? Certainly.
Nice? No.
Modern Business? Yes.
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Old 30th Oct 2003, 23:51
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Glad my house is on a hill.

But I got to argue that the 7E7, if it is ever built at all, will be built in Everett and there is no way that Rainier will get mud up there that far. The ash would be bad though.
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Old 31st Oct 2003, 00:39
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I think you'll find that only ONE building was condemned following the 28 Feb earthquake, the 10-81 in Renton.
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Old 31st Oct 2003, 01:31
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The reason Mobile is a prospect is that folks HATE unions down here. Ask Mercedes, Honda, DeGussa, Ciba-Geigy, etc....
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Old 31st Oct 2003, 02:44
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I would say a volcano was a pretty good reason for relocating.
As long as Boeing dont relocate out of the USA is it really an issue? being a major employer places they have been based in the past will have had a good time of things.Maybe its time other areas of the USA got abit of jam on their bread by having Boeing in their back yards.
As for the post mentioning DeGussa is that the company I read somewhere recently who were stopped from supplying anti grafitti products to a Haulacaust memorial site in Europe when it was found back in the past they just happened to produce Ziclon B gas used by the Nazi's.Maybe iam wrong but it just sprung to mind having read a recent article.
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Old 31st Oct 2003, 03:41
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We need to be challenged to look far beyond ourselves if we are to face up to the tough and costly choices involved in rebuilding our transportation infrastructure,
----------------------------------------------------------------------------------
Didn't Phil Condit in his "farewell Seattle" speech cite Seattle's non-existant public transport policy as a reason for abandonong the Emerald City ? Seattle public transport and Interstate system suck, it has the second worse traffic in the nation and is making a once beautiful city ugly. The writer of this article is absolutly right that it is time to pony up the taxes and stop the rot.

The diversification of Boeing out of the Puget Sound area has been on the cards for years, it was strongly hinted at that Boeing wouldn't be able to afford to build the B777 in Washington, and personally I don't see the 7E7 being a Washington native either. I once met some sailors from the Queen Elizabeth II, they told me that they ran their ship with a crew of thirty four nationalities, why ? because they were cheap and easily dividable. How much easier for an aircraft manufacturer if aircraft modules are assembled in plants thousands of miles apart ? The 7E7 business model already calls for three B747 freighters to ferry the components to final assembly.

And one other point, the Commercial Airplanes group I believe is down to about 60,000 employees from 90,000. Even after the 757 dies next year, if the remaining lines get back up to maximum production, won't that put the employee figures back to close to 90,000 ? You need $300,000 to get a half descent house in Seattle, maybe the area could do with some stagnation for a while, there'd be fewer of us living in the shadow of Rainier then.
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Old 2nd Nov 2003, 05:41
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Cirrus,

Ultimately, you may correct on the final number. I was gathering information from Boeing for a book I wrote shortly after the earthquake and the nice lady in corporate communications told me there were three people per desk at some locations because about 1/3 of their structures were either closed pending structural analysis, condemned. or under renovation. The damage was extensive.

As for comments about Everett being out of the fray, the damage caused by ash alone could shut down production there for months. You don't dare run an engine in that stuff. Clearly, they are tied to the largest building in the world for aspects of the product line. If they could wave a wand and make that structure reappear in Witchita, you know they would.

PT
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Old 4th Nov 2003, 05:44
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Never mind - you don't get many earthquakes, volcanoes or tidal waves in Toulouse!
Just the prostitutes and dog $hit then.

Nice town, fab food and nightlife, you get to kip all afternoon at airbus after your red wine lunch.
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Old 4th Nov 2003, 07:46
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I drive past the empty site that was the 10-81 building quite regularly, but it was the only Boeing building that was condemned. Some needed pretty substantial repair (including the one I was in at the time!).
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