BA Boeing Co

By Andrew Tangel 

Boeing Co. said it is ending production of its 787 Dreamliner in the Seattle area after more than a decade and plans to consolidate assembly of the popular wide-body jet to its factory in South Carolina next year.

The Chicago-based aerospace giant's decision Thursday follows a sharp drop in demand for passenger jets as the coronavirus pandemic has sapped demand for global air travel. Boeing had previously slashed Dreamliner production and said in July it would study consolidating production.

"I know this isn't easy, and I appreciate how we have supported each other and stayed nimble while we look at every opportunity to adapt, preserve our liquidity and be more competitive in a very different commercial market," Stan Deal, Boeing's commercial division chief, said in a memo to employees Thursday morning.

The announcement comes amid criticism from elected officials in Washington state. The Wall Street Journal reported late Tuesday that Boeing's decision to consolidate production in North Charleston, S.C., was expected as soon as this week.

--Dreamliner

Rep. Rick Larsen, a Democrat who represents the Seattle area in Congress, earlier this week called Boeing's decision "shortsighted and misplaced."

"As the economy comes back and air travel returns, I will fight to bring 787 production back to Everett," said Mr. Larsen, who is chairman of a House aviation subcommittee.

Write to Andrew Tangel at Andrew.Tangel@wsj.com

(END) Dow Jones Newswires

October 01, 2020 12:03 ET (16:03 GMT)

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