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CHICAGO, Jan. 14 (UPI) -- Boeing Co. of Chicago Friday said
it would end production of its 717 passenger jet line and U.S. Air
Force tanker, and take $615 million in charges.
The company will take a pre-tax charge of $275 million
related to the tanker program. Boeing remains a contender for the
tanker program but a $23 billion, 100-plane lease-purchase deal fell
through because a former senior Air Force procurement official held
improper job talks with Boeing while the plan was in negotiation.
The company emphasized it used its own money and received no
U.S. government funding to develop its Air Force tanker, based on
Boeing's 767 passenger jet line. Boeing said it has made no decision
about whether to end production of 767s.
In addition to the tanker charge, Boeing also said it would
recognize charges of $340 million in closing its 717 production line
in 2006.
Related cash payments, supplier termination fees and an
additional $45 million of "period expenses" are expected to occur
between now and 2007, the firm said.
The company said it will continue to provide 717 customer
service for many years to come and would continue to "compete
aggressively" with its 737.