Cost of Boeing airplanes at heart of job cuts

Boeing’s new cost-reduction plan has deep ramifications for Washington because the bulk of the 4,500 job cuts are likely to land here.

CEO Dennis Muilenburg asked investors to view the savings initiative as “playing offense in a competitive marketplace” even though Boeing has a $431 billion backlog of 5,800 aircraft orders.

Translated, Muilenburg means the aerospace giant needs to find ways to lower the price tag of its airplanes.

Boeing leaders worry because Airbus’ A320 scooped up 63 percent of the orders last year in head-to-head competition with the 737. The 737 has been Boeing’s cash cow...