http://www.presstelegram.com/Stories/0,1413,204~21474~2000663,00.html#Saturday, March 06, 2004 - The Boeing Co. has told the U.S. Securities and Exchange Commission it is prepared to take a $400 million charge off if sales campaigns for its Long Beach-built 717 passenger jet sputter and forces it to shut down production.
The 717 program has spiraled downward in popularity, dropping from 49 deliveries in 2001 to just 13 last year, and an unidentified "major sales campaign'' was lost in late 2003, "increasing the possibility of program termination,'' according to an annual SEC filing posted late Thursday.
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The problem is the 717 has cheaper-priced competitors that offer the same elements as the Boeing aircraft, Aboulafia said.
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Last year, Air Canada opted to buy regional jets rather than the 717, hurting the plane's chances. Boeing has also been courting the so-called Star Alliance, a consortium of airlines that include Air Canada, and China as a potential 717 buyer.
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Boeing won congressional approval last fall for a contract under which it would lease and sell 100 767 jets to the Air Force for use as refueling tankers. But it was put on hold amid questions about ethical issues surrounding the way Boeing pursued the deal, particularly after the company fired two senior executives for alleged improprieties during the lobbying phase.
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