Boeing will keep some operations in Renton

By Allison Linn
Associated Press

RENTON, Wash. — Boeing Co. will continue to produce its Boeing 737 and 757 commercial airplanes in Renton "for some years," Alan Mulally, head of Boeing's Commercial Airplanes division said yesterday.

But, Mulally said, the Seattle area will have to become more competitive and fix traffic congestion more quickly if it wants to keep Boeing's airplane production in Renton over the long term.

"This is not the most competitive business environment that we operate in," Mulally told members of the Greater Renton Chamber of Commerce at an annual luncheon.

Doing business in Renton, a 51,000-resident town centered around Boeing's massive airplane production plant, can be costly and frustrating, Mulally said. Traffic has gotten so bad, he said, that aircraft parts much be delivered in the middle of the night, at considerable cost.

Nevertheless, Mulally said Boeing is not immediately thinking of moving its Renton production operations to Everett, north of Seattle, where its wide-body passenger jets are produced. The company has acknowledged studying such a move.

"I see operations in Everett and Renton for some years to come," Mulally told reporters after the luncheon.

Area businesses dependent on Boeing paychecks are already having to cope with Boeing's plan to eliminate up to 30,000 jobs this year and next, many in the Puget Sound region.

The layoffs follow a massive downturn in the aviation industry, made worse by the September terrorist attacks, which has left many airlines in dire financial straits.

The layoffs are the second major blow to the area. In September, Boeing moved its corporate headquarters to Chicago, although its commercial division and most of its employees stayed here.