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American Morning

Boeing Headed to Chicago

Aired May 10, 2001 - 11:20   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: We're going to get back to the Boeing story now. Indeed, we have confirmed that the Boeing Corporation will move from the northwest in Seattle to the Chicago area. In fact, we've learned that there will be a 3:00 p.m. news conference at Midway Airport. With more on this, let's go to Chicago and our Lisa Leiter. Lisa, Chicago is the winner over the other two cities

LISA LEITER, CNN CORRESPONDENT: Yes, Daryn. You'll definitely see the champagne corks flying in this city today. That's for sure. A state source confirming to me that Boeing has chosen Chicago as a site of its new corporate headquarters. And Boeing employees are expected to be notified via e-mail at any moment.

Now, as you said, there will be an afternoon press conference expected here at Midway Airport. Today's decision ends a very highly public and very unusual process by Boeing to choose a new corporate home. Boeing had narrowed its choices down between Chicago, Dallas and Denver, saying that one of the reasons why it wanted to move from Seattle, the place it's called home for 85 years, is to be more centrally located.

Boeing also wanted to separate itself from its three major business units, its military, its space, and also its commercial aircraft business. Now, that manufacturing operations for its commercial airplanes will remain in Seattle, as well as tens of thousands of employees that work for it.

Boeing is actually only bringing 500 new jobs to the city of Chicago. It's paring down its current staff of 1,000 at Boeing headquarters in Seattle, only bringing 500 jobs to the city of Chicago. And while that won't be major economic boom for this city, it's certainly a huge boost to the city's image, Daryn.

KAGAN: Lisa, any word on why Chicago did win out over Denver and Dallas?

LEITER: Well, no word, obviously, from the company yet. They're remaining mum for the time being. But local officials say certainly its central location would be one reason. Also, the city and the state played up huge tax breaks for the company. They apparently offered the sweetest deal to Boeing of the three cities involved, more than $20 million in tax breaks.

And also, the fact that this city is a huge transportation hub, very easy access to the East Coast and overseas, as well as the fact that it's a culturally diverse city as well. And Chairman Phil Condit is said to be a lover of opera. And Chicago has a great opera house, that's for sure.

KAGAN: Well, that could have sealed the deal. Lisa Leiter, thank you for that report from Chicago. Once again, that news conference taking place 3:00 p.m. Eastern, 2:00 p.m. Chicago time. You will see that here on CNN.

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