Boeing is cutting back and reshaping its aircraft component manufacturing business in Australia with hundreds of workers at its Fishermens Bend facility in Melbourne losing their jobs as activity is transferred to other plants or sent to overseas manufacturing facilities.
The long expected changes in Melbourne will also see Airbus pull out its aircraft component manufacturing contracts with Boeing in Australia.
The reasons for the pullout are confused if the statements by executives from the two companies are taken at face value.
Airbus says that Boeing claims it no longer wants to do the work as it needs to concentrate on Boeing 787 components.
The Australian government contributed $25 million to assist in setting up the B787 facility which has developed state-of-the-art composite aircraft parts manufacturing techniques.
However Boeing told Asia-Pacific Aerospace Report it wants to retain the Airbus work.
The changes have reinforced longrunning rumours that Boeing intends to sell its Hawker de Havilland facility on Bankstown Airport, just outside Sydney.