Washington : Boeing Co said on Thursday it will move its headquarters from Chicago to Arlington, Virginia, as the crisis-plagued U.S. planemaker trying to repair relationships with customers, federal regulators and lawmakers.

"The region makes strategic sense for our global headquarters given its proximity to our customers and stakeholders, and its access to world-class engineering and technical talent," Boeing President and Chief Executive Officer Dave Calhoun said.

Cost cuts and a more hands-on corporate culture had raised questions about Boeing's future in Chicago, and in turn the broad direction Boeing intends to take as it tries to regain its stride. Boeing said it will maintain a significant presence at its Chicago location and surrounding region.

Boeing has been working to repair its relationship with the U.S. Federal Aviation Administration and lawmakers after prior CEO Dennis Muilenburg was fired in 2019. Boeing, is the key supplier to the U.S. Defense Department.

Boeing already has an Arlington office that opened in 2014 and has significant unused space. Boeing shares were 3% lower in afternoon trading on a down day for the Dow Jones Industrial Average.

The Chicago headquarters - a 36-floor, $200 million riverfront skyscraper - has also been at the crossroads of a cost-cutting campaign that has seen Boeing shed real estate, including its commercial airplane headquarters in Seattle.

Boeing moved its headquarters to Chicago in 2001, leaving its Seattle home after 85 years following its 1997 merger with St. Louis-based rival McDonnell Douglas - a decision that angered rank-and-file mechanics and engineers.

Boeing was seeking a post-merger headquarters in a neutral location separate from those existing divisional power centres.