There's folly in pursuing Boeing's 'dreamliner'

Notwithstanding crippling budget crises, 19 states have risen to bait set out by the Boeing Co. and proffered bids -- some breathtakingly large -- to land the assembly plant for Boeing's proposed new, fuel-conserving 7E7 jetliner. Appropriately, the new machine is dubbed the Dreamliner.

The biggest bidder of all is Washington state, which put together a subsidy package estimated to total $3.2 billion (yes, billions!) in value.

For 1,000 jobs -- midpoint of the 800 to 1,200 Boeing is estimating -- that works out to roughly $160,000 per worker per year over a plant life span of about 20 years.

Yet the jobs will average just $65,000 a year in pay.

Announcement comes on top off 35,000 layoffs already set

SEATTLE, July 17 - The Boeing Co. plans to cut 4,000 to 5,000 more jobs than previously planned from its commercial airplane division by the end of the year, as the airline industry remains mired in the worst downturn in its history.

The cuts will come through attrition and layoffs, Boeing spokesman Bill Cogswell said Thursday. Since the terrorist attacks of Sept. 11, 2001, Boeing had said it would need to cut 35,000 from its work force by the end of 2003.
Now, with the continuing aviation slump, worsened by the Severe Acute Respiratory Syndrome outbreak this year, Boeing believes it needs to further slash its employment levels, Cogswell said.

"The industry still is in trouble and we continue to have to monitor the situation closely and update our plans accordingly and size production to meet the demand," he said. The additional cuts disclosed Thursday represent up to 8 percent of the commercial airplane division\ufffds work force of 61,000.