Boeing will move its headquarters to DC area from Chicago

May 4, 2022, 11:22 PM | Updated: May 5, 2022, 6:00 pm
FILE - In this July 13, 2021, photo, the logo for Boeing appears on a screen above a trading post o...

FILE - In this July 13, 2021, photo, the logo for Boeing appears on a screen above a trading post on the floor of the New York Stock Exchange. Boeing Co., a leading defense contractor and one of the world's two dominant manufacturers of airline planes, is expected to move its headquarters from Chicago to the Washington, D.C., area, according to two people familiar with the matter. The decision could be announced as soon as later Thursday, May 5, 2022, according to one of the people. (AP Photo/Richard Drew, File)

(AP Photo/Richard Drew, File)

Boeing Co. said Thursday it will move its headquarters from Chicago to the Washington, D.C., area, where company executives would be closer to key federal government officials.

The company said it will use its campus in Arlington, Virginia, as its new headquarters, and it plans to develop a research and technology hub in the area.

“The region makes strategic sense for our global headquarters given its proximity to our customers and stakeholders, and its access to world-class engineering and technical talent,” Boeing CEO David Calhoun said.

The move marks a win for Virginia’s Republican Gov. Glenn Youngkin, who campaigned last year on a promise to bring new businesses and jobs to the state.

“The decision to call Virginia home shows that the Commonwealth is the premier location for aerospace companies,” Youngkin said in a statement. “I look forward to working with Boeing to attract even more talent to Virginia especially given its reputation for engineering excellence.”

Youngkin retired in 2020 as co-CEO of private equity giant the Carlyle Group. He was personally involved in discussions about the move and had a prior business relationship with Calhoun, who also was an executive in the investment industry, according to a person familiar with the matter who was not authorized to discuss the negotiations publicly.

A spokeswoman for Virginia’s economic development agency said the project will not receive any state incentives, nor will it receive any from Arlington County, a spokeswoman there said.

Boeing is a major defense contractor, and the move will put executives close to Pentagon leaders. Rival defense contractors including General Dynamics, Lockheed Martin and Northrop Grumman are already based in the D.C. area.

Company executives would also be near the Federal Aviation Administration, which certifies Boeing passenger and cargo planes.

Boeing’s relationship with the FAA has been strained since deadly crashes of its best-selling plane, the 737 Max, in 2018 and 2019. The FAA took nearly two years — far longer than Boeing expected — to approve design changes and allow the plane back in the air. Certification of new Boeing planes will take longer too.

The company has suffered financial setbacks in building a refueling tanker for the Air Force. And it has been hurt by the pandemic, which undercut travel and demand for new planes. Boeing lost $1.2 billion in this year’s first quarter.

Boeing’s roots are in the Seattle area, and it has assembly plants in Washington state and South Carolina. The company moved its headquarters to Chicago in 2001 after an unusually public search that also considered Dallas and Denver.

Cai von Rumohr, an aerospace analyst for Cowen, said there were advantages for Boeing moving its headquarters to the Washington, D.C., area — or back to Seattle, where leaders again would be closer to the company’s important commercial operations.

“Chicago does nothing for them,” von Rumohr said.

Boeing had 142,000 employees at the end of 2021, including 12% based outside the United States, according to a regulatory filing. The filing did not say how many work in Chicago.

Richard Aboulafia, an analyst with consultant AeroDynamic Advisory, said Boeing’s Chicago work force “is minimal,” making the move easier.

Boeing said it would maintain a presence in Chicago and the surrounding region and did not say how many additional employees would begin working in Virginia.

Rep. Peter DeFazio, chairman of the House Transportation Committee, which investigated Boeing and the FAA after the Max crashes, criticized Boeing’s move to be closer to federal policy makers.

“Boeing should focus on making safe airplanes, not lobbying federal regulators and Congress,” he said.

Meanwhile, many of Virginia’s elected officials celebrated the news.

Democratic state Senate Majority Leader Dick Saslaw called it “one hell of a catch.”

Democratic U.S. Sen. Tim Kaine, a member of the Senate Armed Services Committee, said Boeing’s decision was a testament to Virginia’s skilled workforce and strong national security community.

U.S. Sen. Mark Warner, also a Virginia Democrat and a former entrepreneur and investor, indicated the deal had been in the works for quite some time.

“For well over a year, I’ve been making my case to Boeing senior leadership that Virginia would be a great place for its headquarters, and late last year, I was happy to learn that my efforts were successful,” he said in a statement.

In an interview, Warner said he thought the new headquarters would reinforce Virginia’s prominence as a home for businesses but that the research and technology hub might have an even longer-term economic impact.

The company’s statement thanked both Youngkin and Warner.

Boeing will be following in the footsteps of Amazon, which decided to put a second headquarters in Arlington. Last month, local officials approved Amazon’s plans to erect a 350-foot helix-shaped building.

Boeing’s decision was first reported by The Wall Street Journal.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

People walk toward the border crossing between Georgia and Russia at Verkhny Lars, as they leave Ch...
Associated Press

Fewer Russians cross border to flee despite military call-up

TALLINN, Estonia (AP) — Fewer Russians have crossed into neighbouring countries in recent days, according to local authorities, despite persistent anxiety over the partial mobilization the Kremlin launched less than two weeks ago to bolster its forces fighting in Ukraine. The mass exodus of Russian men — alone or with their families or friends — […]
1 day ago
Associated Press

Catalans commemorate 5th anniversary of failed breakaway

BARCELONA, Spain (AP) — Thousands of Catalans gathered in Barcelona on Saturday to commemorate the fifth anniversary of an independence referendum that marked the high point of their movement to break away from the rest of Spain. The 2017 vote, which was declared unconstitutional by Spain’s top courts, was marred by clashes with police who […]
1 day ago
This photo provided by Administrative office of Pennsylvania Courts shows Max Baer, the chief justi...
Associated Press

Max Baer, Pennsylvania Supreme Court’s chief justice, dies

PITTSBURGH (AP) — Max Baer, the chief justice of the Pennsylvania Supreme Court, has died only months before he was set to retire, the court confirmed Saturday. He was 74. Baer died overnight at his home near Pittsburgh, the court said in a news release. The court didn’t give a reason for his death but […]
1 day ago
Associated Press

Poland adds pregnancy to patients’ medical data

WARSAW, Poland (AP) — A new regulation that came into force in Poland Saturday requiring pregnancy information to be uploaded to the national digital system has raised concerns among women’s organizations that it could be another means for the conservative government to control women’s lives. Women’s groups suggest the Health Ministry regulation would enable authorities […]
1 day ago
Associated Press

Czechia’s ruling coalition wins election in Senate

PRAGUE (AP) — A senior government party in the Czech Republic linked to conservative Prime Minister Petr Fiala has won an election for a third of the seats in Parliament’s upper house, with the ruling coalition parties retaining a dominant position in the Senate. With all the votes counted Saturday by the Statistics Office, the […]
1 day ago
In this photo provided by the Armed Forces of Denmark, a view the disturbance in the water above th...
Associated Press

Danes: Nord Stream 2 pipeline seems to have stopped leaking

COPENHAGEN, Denmark (AP) — The Danish Energy Agency says one of two ruptured natural gas pipelines in the Baltic Sea appears to have stopped leaking natural gas. The agency said on Twitter on Saturday that it had been informed by the company operating the Nord Stream 2 pipeline that pressure appears to have stabilized in […]
1 day ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
Boeing will move its headquarters to DC area from Chicago