Arrow-right Camera
Go to e-Edition Sign up for newsletters Customer service
Subscribe now


News >  Business

Boeing mulls relocating division headquarters to Everett

UPDATED: Wed., Oct. 21, 2020

The logo for Boeing appears above a trading post on the floor of the New York Stock Exchange on Monday, July 22, 2019.   (Associated Press)
The logo for Boeing appears above a trading post on the floor of the New York Stock Exchange on Monday, July 22, 2019.  (Associated Press)
Associated Press

EVERETT – Boeing is considering relocating its commercial airplane division headquarters in Washington state in an effort to reduce costs during the coronavirus pandemic.

Boeing Executive Bill McSherry confirmed earlier reports that the company was mulling whether to vacate the Boeing Commercial Airplanes headquarters in Renton and move to either the Boeing Field in Seattle or the campus in Everett, The Daily Herald reported.

McSherry told participants at an Economic Alliance Snohomish County virtual gathering on Tuesday the pandemic has forced the airline to take “some very difficult steps” and drove the company “to respond to the new normal here for the next few years.”

McSherry suggested that both locations are possibilities, and some employees have already moved to the Everett campus after vacating a 338,577-square-foot office building it had leased in Mukilteo.

“Certainly, Boeing Commercial headquarters will always remain here in the Puget Sound region, but we do think our leaders will get closer to where our production and delivery facilities are,” he said.

The company borrowed $25 billion from the capital markets instead of taking any federal relief aid during the pandemic, and is scrutinizing operations “to ensure we can bridge this gap with available funds,” McSherry said.

The assembly plant at Paine Field in Everett, where the company’s largest planes are made, will continue to see a lull in production as officials believe sales of wide-body jets aren’t expected to rebound for years. The larger jets dominate international travel routes flown by Boeing aircraft.

Production of the bigger planes is expected to pick up again when travel resumes, which is estimated in 2023 or 2024, McSherry said.

The assembly plant is still expected to continue operations, but production is now being consolidated as a result of the decline in air travel.

“The decision to consolidate was a business decision,” Everett Mayor Cassie Franklin said at the virtual meeting. “And I know many of us here on this call today have to make similar difficult decisions this year.”

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Subscribe to the Coronavirus newsletter

Get the day’s latest Coronavirus news delivered to your inbox by subscribing to our newsletter.

Annual health and dental insurance enrollment period open now

 (Courtesy Washington Healthplanfinder)

2020 has been a stressful year for myriad reasons.