Jeff Higgins |
04-12-2005 05:45 AM |
Quote:
Originally posted by Superman
IIf Boeing is abandoning Renton and demolishing buildings, then it might be in order to prepare the area for sale. I mean real estate. That's a big place they have, right on the outskirts of Seattle.
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There was an analysis published last year that looked at the commercial value of that property. It was staggering what they claimed it is worth. The idea was to create a kind of high-end community with upscale waterfront condos, shopping, and cultural/entertainment venues all within easy walking distance. The revenue generated is predicted to be far in excess of building silly old airplanes there.
And yes, Boeing has lost its edge, its willingness to gamble. Most blame it on the merger when MD bought Boeing with Boeing's own money. Anyone who doubts that can look at the current crop of Boeing execs... for the most part former MD. They come from a military contract based no-risk culture; everything is "cost plus". MD bailed from the risky world of commercial aviation quite some time before the merger. That culture of no-risk decision making has permeated the company right down to its lowest levels. The next ******* flunkie middle manager that asks me to make a "business case" for some painfully obvious decision is going to get an ear full...
And finally (as long as I'm at full rant), I had always seen Stonecipher as the "great dismantler". He added nothing to the company. He sold off much of what his predecessors built, and built through great risk to the company. I think we made more money in selling real estate and other assets during his (and Condit's for that matter) tenure at the top than we did selling airplanes. We're back to the quarterly stock reports driving business decisions in an industry that is well known for its long-term ROI's. Even the SEC recognizes the unique finances of commercial aerospace and grants special book keeping rules to help us out (it's called "forward loss" or something like that; it allows development costs to be ammoritized over the life of a program and its projected sales, rather than piled on at the start). Included in this mad rush for quarterly returns is the worst treatment of its workforce I think we have seen in the company's history. In a business notorious for its ups and downs, all of us old dogs have come to accept a bit of that. Throw in a company's willingness, or more like eagerness, to sell of divisions along with employees at those divisions; its willingness to offload design and manufacturing of parts and sub-assemblies and lay off the workforce that produced them, and you have a sure-fired recipe for some major dissenfranchisement (is that a word?). Anyway, if Airbus ever came to town, try to stay clear of the stampede...
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