Boeing 777X Design
6:16 am
Thu October 31, 2013

Boeing Analyst Says Decision To Design 777X Elsewhere Is A Power Play

A top aviation analyst believes a Boeing announcement to employees is a play for better tax incentives.

While Governor Inslee has already announced a series of incentives and ideas to incentivize Boeing, to build the airplane here, the problem with that is he’s now got his cards on the table and South Carolina sees what he’s offering and they could be looking at this and having their own incentive package being composed to offer Boeing as well.
Credit Thomas Sørenes/Flickr

In an internal memo, Boeing said much of the detailed design work on the triple 7-X jetliner will be done outside of the Puget Sound area. Instead, the company said the work would be going to Boeing engineering teams in Charleston, Huntsville, Long Beach, Philadelphia and St Louis. Scott Hamilton is a Boeing analyst at the Issaquah-based Leeham Company. He calls the internal memo part of a larger strategy to have a bidding process between Washington Governor Jay Inslee and the governors of other states.

Hamilton: “While Governor Inslee has already announced a series of incentives and ideas to incentivize Boeing, to build the airplane here, the problem with that is he’s now got his cards on the table and South Carolina sees what he’s offering and they could be looking at this and having their own incentive package being composed to offer Boeing as well.”

Hamilton also says this may be part of what he called the company’s efforts to “de-emphasize” SPEEA, the union that represents Boeing’s white collar workers in the Puget Sound region. The executive director of SPEEA told the Seattle Times he thought the internal memo caused some panic because of the way it was phrased. He also called it “inflammatory”. Boeing says no final decisions have been made about whether or not all or part of the Triple 7-X will be designed or built in Washington.

Copyright 2013 KUOW

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