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Fate of Douglas facility could be determined by sales of 717.


In a ceremony filled with balloons, music and congratulatory con·grat·u·late  
tr.v. con·grat·u·lat·ed, con·grat·u·lat·ing, con·grat·u·lates
To express joy or acknowledgment, as for the achievement or good fortune of (another).
 speeches, Boeing Co. rolled out its new short-hop 717 jetliner at the company's Douglas Products Division plant in Long Beach last week.

The only thing missing? Customers.

Although Boeing has a firm order from AirTran Airlines to buy 50 planes (and an option for another 50). plus a firm order from Bavaria International Aircraft Leasing Co. for five planes, Boeing has yet to find a major-airline customer or major lessor One who rents real property or Personal Property to another.

A lessor of land is a landlord. Cross-references

Landlord and Tenant.


lessor n. the owner of real property who rents it to a lessee pursuant to a written lease.
 for its new 717 plane.

"Boeing traditionally would never roll out an airplane airplane, aeroplane, or aircraft, heavier-than-air vehicle, mechanically driven and fitted with fixed wings that support it in flight through the dynamic action of the air.  with as weak an order book as they have on the 717," said Jon Kutler. president of Quarterdeck (Quarterdeck Corporation, Marina del Rey, CA) A pioneering software company, founded in 1983, that offered a variety of utilities, diagnostics, connectivity and Internet products for the PC and Macintosh.  investment Partners Inc., a Los Angeles-based aerospace investment firm.

Boeing officials insist they are working hard to push the 717, which it inherited inherited

received by inheritance.


inherited achondroplastic dwarfism
see achondroplastic dwarfism.

inherited combined immunodeficiency
see combined immune deficiency syndrome (disease).
 as the MD95 in its acquisition last year of McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company.  Corp.

"We have lots of discussions." said Ron Woodard, president of Boeing Commercial Airplane Group. "There is a lot of interest in Europe, and there is a lot of interest in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . And those are the two primary markets."

Bruce Dennis, vice president of marketing for Boeing Commercial Airplane Group, said other Boeing planes have been rolled out with a small number of customers.

"The last plane Boeing launched was a 777, and that was launched with only one customer United Airlines," Dennis said.

But the 777 has a much higher list price between $130 million and $146 million. By comparison, the 717 lists for between $30 million and $34 million (though the resources devoted to launch the 717 are considerably less than for the 777).

Dennis acknowledged that the number of 717 orders is not as high as Boeing would like. "Would we like to have more? You bet. I'd love to sit here saying we have 40 customers," he said.

One reason Boeing has been slow in attracting customers is that the company's marketing and sales staff had to be educated on an airliner that was not part of Boeing until less than a year ago.

"We didn't know much about this thing until the merger last year." Dennis said. "All of a sudden. come Aug. 4 (when the merger was finalized See finalization. ), there was a gear-up time and a training time, and that takes effort. We put a lot of effort into it and I think we're at full speed now."

Dennis said Boeing marketers have met with more than 100 airlines and commercial aircraft lessors about the 717, and that serious discussions are underway with about 50 of those companies. "This thing looks real optimistic op·ti·mist  
n.
1. One who usually expects a favorable outcome.

2. A believer in philosophical optimism.



op
 here," he said.

Whether or not Boeing finds a sufficient number of customers for its 717 could determine the future of Long Beach's Douglas division and the workers who remain there.

Boeing already has cancelled the other three commercial aircraft programs at the Long Beach plant - the MD-11, MD-80 and MD-90 programs - potentially taking with them thousands of Long Beach jobs.

Therefore the plant's future may lie with the 717 program, which employs about 1,500 workers.
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Title Annotation:Boeing Co.'s Douglas Products Division
Author:Taub, Daniel
Publication:Los Angeles Business Journal
Date:Jun 15, 1998
Words:510
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