URGENT: Get Set For Boeing Layoffs

September 18, 2001 By KOMO Staff & News Services

SEATTLE - The Boeing Company plans to lay off 20 percent to 30 percent of its commercial airline work force -- roughly 31,000 people -- in the wake of the four hijackings that terrorized the East Coast and the airline industry.

A congressional source tells The Associated Press that the company will make the announcement Wednesday morning.

The company will reportedly not be announcing specific locations for the layoffs, but is telling lawmakers they are expected to be implemented by early next year.

A Boeing spokesman said he was not at liberty to comment on that at this time.

Roughly 93,000 people work for Boeings' commercial airline sector, much of which is centered around the company's former headquarters in Seattle.

Inevitable Side Effect

Boeing's stock has taken a tumble since markets reopened. On Monday, the first regular day of trading since the attacks, the stock price fell $7.60. The price was down $2.66, to $33.14, when trading closed Tuesday.

The total drop since trading resumed was $10.32.

Major airline carriers have warned they would be laying off at least 26,000 people -- a number that could grow to 100,000. Many, including American, Continental, Delta, Northwest and United, have also scaled back their schedules by about 20 percent.

With such declines, analysts have said layoffs at Boeing could be an inevitable side effect as orders for commercial aircraft are certainly expected to drop.

Federal Aid Package

The White House and Congress are considering a federal aid package for the airline industry to help them recover from last week's attacks.

The industry has asked for $24 billion. The House floated a $15 billion relief plan last Friday that could include $2.5 billion in immediate grants and $12.5 billion in loans and credits.

Though the White House and congressional leaders suggested a multibillion-dollar package was on the way, they weren't offering a final dollar figure or timetable for debate.

The Bush administration could propose an aid package next week, Transportation Secretary Norman Mineta said. The House may move

http://www.komotv.com/stories/14154.htm

-- Martin Thompson (mthom1927@aol.com), September 18, 2001