Boeing moves to Chicago

Chicago is already home to McDonalds and Motorola

By BBC News Online's North America Business Reporter, David Schepp

Boeing's shopping spree has ended and the winner is ... the Windy City.

Chicago is Boeing's choice for its new world headquarters, edging out Denver and Dallas after a high-profile US-wide search.

Boeing confirmed the move on Thursday after a surprise announcement in March that it was leaving Seattle for a more central location.

The company plans to move to its new headquarters on 4 September from Seattle, where it was founded in 1916.

"We looked at three very exciting metropolitan areas in which to base our company," Boeing chairman Phil Condit said.

"It was a very difficult decision."

'My kind of town'

Chicago is a mere two and a half hour flight from New York and just two hours from Washington, DC. But the move also puts Boeing closer to European markets.

It is also home to the world's busiest airports, O'Hare International Airport.

The new headquarters is expected to be smaller than Seattle's operations, with reportedly 500 fewer employees - half of its current staff.

The company will keep its massive aircraft factories and design and development facilities in the Seattle area.

Chicago was eager to land Boeing, both to add another world-class business to those already based there - like McDonalds, United Airlines, Motorola and Sears Roebuck - and to reverse a recent trend that has seen it lose several corporate headquarters, including Amoco before it merged with BP.

Meanwhile, Fort Worth, Texas-based American Airlines announced that it was buying 15 new Boeing 767 aeroplanes in part to replace nine older Boeing aircraft it gained in its acquisition of Trans World Airlines.

American Airlines also intends to replace certain Airbus planes. It operates a fleet of 719 aircraft and plans to receive 55 new Boeing planes this year.