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10
Tuesday, December 2, 2003
NATlfli
THE BATTALK)
Phil Condit quits abruptly as
Boeing CEO amid controvers)
By Dave Carpenter
THE ASSOCIATED PRESS
CHICAGO — Boeing Co.
chairman and CEO Phil Condit
resigned unexpectedly Monday
amid deepening turmoil over
questionable tactics used
by the aerospace giant in
aggressively trying to win
defense contracts.
The stunning resignation
came a week after two execu
tives were fired for unethical
conduct, including chief finan
cial officer Mike Sears, who
had worked closely with
Condit at Boeing’s Chicago
headquarters.
Condit, 62, said he quit to
try to prevent the company
from getting “bogged down”
after a year of tumult involving
its defense business.
“I ultimately concluded it
was the best decision for the
good of the company,” he said.
“The controversies and dis
tractions of the past year were
obscuring the great accom
plishments and performance of
this company.”
Among other things, the
Pentagon is investigating alle
gations that a former Air Force
official gave Boeing informa
tion about another company’s
competing bid on a contract to
supply the military with air
refueling tankers.
The Air Force official,
Darleen Druyun, was later
hired by Boeing as a vice pres
ident and Boeing eventually
won the estimated $17 billion
contract. Last week, Druyun
was fired along with Sears,
who had talked to her about a
job with Boeing while she was
still at the Pentagon.
Boeing has had other
troubles with the Defense
Department in recent months.
In July, the Pentagon pun
ished the company for stealing
trade secrets from rival
Lockheed Martin to help win
rocket contracts. Boeing has
been barred from bidding on
military satellite-launching
contracts, a penalty that has
cost it seven launches worth
about $1 billion.
Condit has not been con
nected to the ethical issues that
resulted in the recent firings.
The scandal has done seri
ous damage to the image of a
storied company whose roots
date to the invention of the air
plane a century ago. Founded
by William Boeing, the compa
ny had a huge effect on the
development of commercial
aviation in the 1900s.
Boeing employs about
160,000 people and has
churned out thousands of jets
and rockets that have been used
by airlines, the military and
space program.
Condit had been with
Boeing since 1965, when he
joined the company as an aero
dynamics engineer. He became
CEO in 1996 and was named
chairman in 1997.
Condit moved company
headquarters to Chicago from
Seattle in 2001 and reduced
the company’s historical
reliance on commercial jets,
beefing up its defense and
space operations in a strategy
that helped cushion the severe
blow to the aviation business
after Sept. 11.
But he has also been criti
cized for leading Boeing away
from the jetliner business.
Rival Airbus is expected to
eclipse Boeing this year as the
world's largest commercial jet
manufacturer.
Boeing rushed to install new
leaders Monday.
The company brought back
Harry Stonecipher, its 67- year-
old former president and chief
operating officer, from retire
ment in Florida to become chief
executive in what analysts saw
as caretaker leadership.
It also split Condit’s duties in
two. naming boafd member and
former Hewlett-Packard Co.
CEO Lewis Platt as chairman.
Even Boeing backers in
Washington were hesitant to say
the company’s troubles involv
ing the Junker deal are over.
Boeing’s
chairman resigns
The Boeing Company Char?
and Chief Executive Phil Cor.:;
resigned. Boeing, the largest
manufacturer of commercial je5
and the third largest defense
contractor, employs about
156,000 people in over 70
countries.
Annual sales
$60 billion
50
•:
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2002 sales and
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At
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corporation communicalcri
‘Percentages nanus an S813mkr
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n Jun
Food
tries,
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nillion p
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|n every
The l
Boeing Co.; HooveTsfo. J
“I hope this is the et
it,” said Rep. Norm Di
D-Wash., a leading prop«
of the tanker deal. "B
don’t know. There are
other investigations by
1G (inspector general)
internally by Boeing
are under way.”
Pentagon officials said si
resignation was a private t®
pany matter and declined!
comment on the inspetli|
general’s investigation.
Despite Condit’s solid ref;
tat ion. the company’s I
held steady on news ofb
departure. Boeing was fe
just 37 cents \o $38.02 otil
New' York Stock Exchange,
Robert Friedman, an i
space defense analyst for Si]
Equity Group, said nami:;
known “straight shooter"
Stonecipher was clearly
at helping to restore Bi
batterei leptsv^m.
Irgamza
ihowing
is decn
rate. In f
Iteadily
It raised
ifhungr
[he five 1
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NEWS IN BRIEF
First suspect in border city
ambush faces trial
wrong women.
When the shower of gunlire ripped i
their car, the women were returning to thed£ j uc jj c j a i
EDINBURG, Texas — Four women killed
when a shower of gunfire ripped through their
car last year were the victims of mistaken iden
tity, a prosecutor said Monday at the trial of the
alleged triggerman.
“This was a hit that he was told to do,”
prosecuting attorney Joseph Orendein said in
opening statements at the trial of Robert Gene
“Bones” Garza, who has pleaded innocent to a
four-count indictment that charges him with
capital murder.
“He knew what they were going to do,
who they were going to kill,” Orendein said of
Garza and other gang members accused in
the Sept. 5, 2002, slayings. “But they hit the
er they shared near the small border
Donna, about 15 miles north of the M
border and 40 miles west of Brownsville.
A jury of seven men and five women f
decide whether Garza is guilty of capital nw
and should be sentenced to death.
Killed were Celina Linares Sanchez,;
Lourdes Yesenia Araujo Torres, 20; Dante
Lizeth Vasquez Beltran, 21; and Mafia 08
n 178
eral ji
whicl
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of tl
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Americ;
federal
istratior
share it;
Luz Bazaldua Cobarrubias, 31. Two othersW] Eisenhc
in the car but survived.
The women, all illegal Mexican ii
were returning home from their jobs
“ficheras,” or drink sellers, in a rundowncanl
known as Garcia’s Place in Donna.
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