Boeing strike impact to be felt globally

"Our contractual relations allow us to keep functioning unless the strike lasts for a very long time," Chief Executive Jean-Paul Herteman told Reuters in western France.

Boeing itself is cushioned for the time being by a $4.1 billion profit last year and a record $275 billion worth of commercial plane orders. But several analysts say each day of the strike will shave a cent per share off its annual profits.

Standard & Poor's said its ratings were not immediately affected by the strike but warned a "prolonged labor dispute could hurt Boeing's financial strength and competitive posture".

The walkout by the International Association of Machinists and Aerospace Workers (IAM) echoes previous clashes that point to the difficulty of ending such strikes quickly. The union struck for 48 days in 1989, 69 days in 1995 and 28 days in 2005.

The machinists are protesting not only about its contract offer but what they see as plans to shift more jobs to non-union and foreign companies. Some were angered by a union decision to allow two days of extra talks after an overwhelming strike vote.

Boeing has significantly widened its base of suppliers for its newest plane, the 787 Dreamliner, which is being made by companies around the world and only assembled in Everett.

Meanwhile the new freighter version of Boeing's popular long-range 777, which has 75 orders and is set for first delivery in the fourth quarter, faces delays, along with early production work on Boeing's new jumbo, the 747-8.

Airlines have been quiet so far on the effects of the strike. Singapore Airlines, which has 20 of the 787s on order for delivery starting in 2011, said it was in talks with Boeing over how the walkout might affect deliveries.

A spokeswoman for key Boeing customer British Airways said the strike "is not affecting any of our deliveries at the moment but we are monitoring the situation".

(Additional reporting by John Bowker, Paolo Biondi, Mark McSherry, Bill Rigby, Matthias Blamont, Laura Myers; Editing by David Holmes/Rory Channing)