Alan Mulally wants Boeing employees and this community to be clear about two things.

Is he staying as head of Boeing's commercial airplane division?

"Absolutely," he said.

What does he think about James McNerney taking the top job at Boeing?

"I think it's fabulous," he said.

Speaking by cellphone from a family vacation in Montana late yesterday, Mulally — who was a rival of McNerney's for the chief executive job — recalled his long association with McNerney and shared his feelings in expansive fashion.

He clearly wanted to fully dispel the rumors that he might leave in a huff if passed over.

"This is such a big deal for Boeing and the employees of Boeing and the community that capturing how I really feel is important to me," Mulally said. "The employees want to know it's OK. It is going to be OK. We're going to be stronger with the addition of Jim (McNerney). There's nothing negative about this."

Mulally didn't deny his own ambition to take the job that McNerney has won.

"There's a little disappointment," Mulally said, "because I think I could have done a good job." But he said his desire to do the best by the company and his respect for McNerney are bigger factors.

"A leader like Jim enhances the whole Boeing team," Mulally said. "I'm really excited about it."

He described a long working relationship with McNerney that grew closer in the late 1990s.

At that time, Boeing held an intensely fought competition with the three big aircraft engine makers — General Electric, Rolls Royce and Pratt & Whitney — to be the sole supplier of the gigantic new engines for the long-range versions of the 777.

McNerney was chief executive of GE's aircraft engine division. Mulally announced the outcome six years ago this month.

"All three engine makers had terrific offerings. At the end of the day, the GE technical and business case was the most compelling," said Mulally. "I'll always remember giving Jim a call and telling him that he and his team had been selected to power the 777."

So in 1999 Mulally gave McNerney one of the big wins of his career?

"I really helped him get this job," Mulally joked, laughing loudly. "And I'm really proud of that."

Mulally said he and McNerney became close friends and partners during that 777 project.

"We got to know each other really well," Mulally said. "We had a great experience. We respect each other. We have the same values.

"We always knew, even after he left GE, that we'd be working together somehow," he added. "I always treasured his support as a board member. To have him decide to join Boeing now is just terrific."

Dominic Gates: 206-464-2963 or dgates@seattletimes.com