Boeing blow over ex-chief's 'excess'

BOEING is facing highly damaging allegations about the sex life and corporate excesses of former chairman Phil Condit, who quit suddenly last week.

The world's biggest aircraft maker, already reeling from a series of military contract scandals, is also heading for an embarrassing and potentially costly sex discrimination class action in America brought by 38 employees who represent a cross-section of its female staff.

During his seven years as chief executive of the Seattle-based company, Condit developed a reputation as a womaniser who loved the high life, according to the respected BusinessWeek magazine.

It claims that in a 'hiatus' between one of his four marriages, he took up residence at Seattle's Four Seasons Olympic Hotel, where he had the suite remodelled at company expense to add another bedroom.

While there was no doubt that Condit was a brilliant engineer, his behaviour towards female employees became an issue, with top executives confronting him about his personal relationships, BusinessWeek claims.

When Condit became chief executive, the company ran only three small corporate jets. Now, Boeing has a fleet of jets, including a 737 fitted out for Condit in the style of an English library.

A spokesman for Boeing said: 'We will not comment on matters concerning Phil Condit's personal life. But as far as the class action is concerned, there is no merit in their case and we shall dispute the matter.'

The lawsuit, filed in a federal court in Seattle, alleges that top officials knowingly underpaid female staff and denied them promotion to 'enrich the corporation' at their expense. The company insists that there is no merit in the action but, unusually, the court has sealed the case papers.

New chief executive Harry Stonecipher, who has come out of retirement following Condit's sudden resignation, is ready to fly to Britain this week in a desperate attempt to win a £13bn order to supply RAF refuelling aircraft.

Stonecipher, 67, said: 'I am prepared to come to London at any time if it would help.'

Though landing the order would boost Boeing after a bad year, a European consortium led by EADS and Rolls-Royce is favourite to win. A Cabinet decision is expected this month.