The cuts are in addition to 12,000 jobs Boeing previously said it would begin eliminating this year at its civilian airplane division in the Seattle area.

The company's commercial airplane division has lost billions of dollars.

Revenue for the commercial airplane division, which accounts for more than 60 percent of Boeing's sales, rose $1.7 billion, to $9.8 billion.

The number of employees at the commercial airplane division fell to 108,000 from 118,000 during the quarter.

Mr. Pennell retired in 1974 as vice president and assistant general manager of technology in Boeing's commercial airplane division.

Over the next year, as the airplane division struggled to recover, a pattern developed.

Since then, he has held increasingly important jobs, including head of European sales and, most recently, head of business strategy and marketing for the airplane division.

By the time next year when the company's airplane division is expected to be fully recovered, demand for new jets is expected to be declining.

Over the last year, Boeing installed new management to run its commercial airplane division and began improving its performance.

Grumman also hopes to increase its contract work with Boeing's commercial airplane division, which has a record number of orders.