Boeing (BA)

Maurita Sutedja Vice President-Investor Relations
David Calhoun President and Chief Executive Officer
Dave Dohnalek Interim Chief Financial Officer
Noah Poponak Goldman Sachs
Myles Walton UBS
Kristine Liwag Morgan Stanley
Doug Harned Bernstein
Seth Seifman JPMorgan
Rob Spingarn Credit Suisse
Rob Stallard Vertical Research
Sheila Kahyaoglu Jefferies
Ron Epstein Bank of America
Carter Copeland Melius Research
Richard Safran Seaport Global
Cai von Rumohr Cowen
Call transcript
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Thank you for standing by. Good day, everyone, and welcome to the Boeing Company's Second Quarter 2020 Earnings Conference Call. Today's call is being recorded. The management discussion and slide presentation, plus the analyst question-and-answer session are being broadcast live over the Internet. [Operator Instructions] At this time, for opening remarks and introductions, I'm turning the call over to Ms. of for President Boeing Vice Sutedja, Investor the Relations Company. Maurita Ms. go ahead. please Sutedja,

Maurita Sutedja

Thank website morning. Chief follow And slide and second you Dave you President you, Thank John. can Officer; Executive good at And are Calhoun, earnings through and presentation as I'm and reminder, Chief today Boeing’s quarter call. and Welcome Officer. Maurita today's me Sutedja. Interim boeing.com. broadcast with Dohnalek, David our Boeing's Financial XXXX Boeing's to a

information discussion financial filings today. those detailed presentation. our involve provided press goals disclaimer earlier have we our and always, including issued in Projections, statements web forward-looking we at release As SEC risks, the in described included this the and in this estimates end in our morning of

to release disclosures earnings we In and non-GAAP you addition, reconciliation and refer for measures. certain of presentation our

over I David to Calhoun. the turn Now will call

David Calhoun

Maurita. Thank to haven't continue morning, all we hope I as already. encourage you, you well please global And staying if they good And the vaccine everyone this you're through everyone. pandemic. get know

With roughly and our ago, half upside a were COVID-XX turned the a worlds down. year onset of

As together every way. and an it worked we of the industry, on step faced head

we've to travel adapting And by policies best communities, ways domestic our and customers, protocols. we gaining vaccine international still of mission. our this a are is on has and suppliers, We're and said how corner remained our and we're team also as before is used the proud looking of that it's encouraged year inflection We're a focused and travel. teammates, our other point, this there turning Throughout While proving and just the learning recovery to our momentum. stakeholders. progress further how serve operate we that. I'm the to coordinated, be our on full on recovery continuously all progress a in continued go distribution uptick forward critical before to I've

is an start a stability get made driving improving progress let's our transformation operations. Brian the interim CFO. is on business the partnership leader quarter and Brian at or Brian on serve I've I'd And a in has Boeing's is team services proven for next have aerospace, an Dave professional the on chart. here traction of CFO. XX. world-class update, team brought He moment perspective and complex as update appointed you as across our strategic actions with go great I transformation our thanks that, post in the Smith's my important Boeing. his like as our Boeing, performance our to all joins recovery to grateful August to and With take business next began transition. take And the we management recognize journey focused expertise our well-respected significant Dohnalek as business legacy, manufacturing finance he and across effective exceptional It's and he with Overall, a for a to pandemic inheriting to Greg we Dave as West leader will thank through global Before month. we know, traction. at worked planning experience industries. previously And organizations I'm we've long-term to financial and as with and here operational serving bring this career. directly in

efforts headway. to our those in to where airline with significant start the first also the XXX milestone Ryanair. The an member first our in largest XXX MAX continued me, important In Excuse Max XXX for customers’ XXX-XXX fleets second deliveries its have made XXX completed Let's We we delivery to keep we've marking return XXX delivered MAX and flight program, service. the May of going. resumed support quarter XX airplanes, June, Yes. family. to including

ago, approval forward now FAA service. As and noteworthy. Max recall, XXX had XXX airplanes approved We've XXX countries nine and the XXX in the were we have airplanes. of Max to approximately the today than is inventory to months to XXX from Fast we delivered begin progress you roughly more awaiting may returning the resumption operations.

customers than flights, airlines have have Our have to airline XX,XXX commercial flown to flight XXX returned their previously and totaling XX airplanes than grounded XXX,XXX service. those safely fleets returned nearly airlines more hours. revenue more service

more second offers. family schedule turn by the And overall positive commercial we operations, into reinforced as XX%. an traffic flights testament impressive revenue are an XXX a daily. is schedule Airlines MAX a demand orders, three has over corner airplane fleet to million, we reliability of XXXX five last added the domestic half to driven operating nearly than from XXXX the of value This net months by perspective. straight XXX believe Importantly, recovers, airplane proposition seats primarily just MAX. And rate started week the

aircraft experience, orders in underscore than as as These by the emissions from per the continued the to our backlog. XXX additional we are while United commitment are our Airlines. At and end and our significantly quarter, trust we customers’ improve designed well Boeing air These demand the to during modernization those are the XXX X,XXX XXX customers including family. the over the XXX fleet travel. honored in accelerating placing seat. lowering We had new for the airplanes Airlines more of customer And Southwest quarter, appreciate orders carbon

with increases expect XX and, currently to and to XXXX capacity. to airplanes a early chain market importantly, gradually XX increase month producing We’re demand further month in rate continue the supply correspond per to with gradual

the customer discussions. environment the monitor rate We we assess to and plan will market engage as production in continue

approvals previously will shape rate remaining production we our timing regulatory of communicated, plans our the and delivery As ramp.

global And regulators this to remaining the will always, China. steps work We including the approvals ahead. will regulatory lead continue we occur and follow that with anticipate year, still as regulators global in

time of a our business on efforts. to bit like Now, transformation spend I’d

projects pillars; activities in before, have we are around portfolio supporting As each chain one. overhead detailed organization, and and around supply five We’ve each put health, excellence. and organized operational discussed pillar our investment, area infrastructure, this and rigor

assembly we’ve At our even to these more improving is less reducing billions on are six projects these be are which benefits lower of projects and operate. forming We IT time, estate widely quality. remain business flow we enable financial migration consolidating partnerships quarterly rates. visible at which to to grow foundation to change, our that but competitiveness, first-time our long-lasting nearly vendors real productivity, Dave new the when focused our visible see streamline they are square operations, our Through will over our improve the returns. externally, us previously strategic a And will shared further footprint efforts of our costs. simplifying such healthy final the XXX objective dollars help and us as past the with the may have cloud. our return to we reduce Charleston, driving feet that facilities’ and Other year, how our volume accelerating bureaucracy optimizing efforts savings the margins identifying detail. same is million go in the of of to in the to long-lasting been even of results, create of Many cash in production opportunities executing reduced We’ve transformation majority implementing to and create started we’re through projects

XXX,XXX. workforce align in to and system we large. will previously, now the to our us environment we’ve business allow market in support This discussed of market and lower encouraging been we’ve is we’ve our adjusting and approximately and growth the production defense size to with plan government services production commercial today consistent drive our commercial quality at the keep workforce the size are to where rates. increased payback engineering the As roughly investments reality the We overall where our trends into opportunities strengthen seen stability recovery, and with

rates market commercial performance, employment pace recovery, of our own the forward, be will and production key Going of with our factors China, relations execution, overall our trade levels. the

stability, predictability, the excellence, first-time stability Turning accountable highest we’re engineering production action holding and toward ourselves to with driving to drive our to standards. which delivery system every and quality efforts

and documentation production played the to part in adherence this and supporting role returns. standards. key improve ramp we and can and within processes by same XXX MAX as comprehensive FAA our of reviews first-time healthy And a efforts to the strengthen improve. chain. the regular that We rates aware we and implementing helped eliminate strengthening we And transparently still fully conduct our stability at and our traveled ranging initiatives ensure We’re our our supply to audits suppliers issue to with predictability stable and demand a productivity quality while are identifying These identify XXX. drive rate factories and areas quality as proactively and of we’re work applying keep efforts. methods low, has rigor our process, have relatively the practices, on can from enhanced quality, This correcting any approach source in internally

Now, are forecast impacts community recognize customers. XXX performance. to our in have felt our I specifically I the these rate we The our create uncertainties difficulties on inconsistency by understand investment and caused cadence. both the by our suppliers the our and by the to delivery program, challenges production also

address to like just these have issues work on MAX. we determined are to the will continue We so, XXX to and do and do tirelessly

are our regulators way. have operations. this The identified we in approach our with teams of to methodical now and step our to every purposeful communicated addressing driving and quality we and of customers part this process have committed fully first-time are We’re and that stability issues engineering transparently the

rework, earlier work progressing and through these month. We’re shared we including additional inspections the this

the we’re continue the rework. a methodologies to for engage weeks verification production of with few the for resources our discussions assessment And in on required, time We the FAA and XXX. inspection to on support detailed reprioritizing based

returning rate this As and than month that of upon currently month five on the five half The deliver XXXs exact to progress a will fewer airplanes now per is our production Of lower will performed, XXX that in the timing return inventory. from stability we is year. to gradually production of than delivering XXX to expect and work per rate. of them inventory, approximately depend rate

our near-term to it’s we course quality. impact levels time I’m the to ensure operations, and highest the of right a take confident continue has necessary of this action will the While to

long end the a the we’re believe Although closer we to it’s journey, than been beginning.

is to two XXX/XXXX on month. rate combined touch the per before other The move me production XXX/XXXX segments. I Let program

continue in the We evidenced freighter strong freighters as bridge solid demand, the by for XX a orders quarter, see providing to XXXX. to XXX

to we XXXX designed comprehensive a reliability program, as meet are all and the airplane test requirements. subjecting the to program demonstrate its applicable safety On well as

every test, transparently feedback and of communicate regulators and our the mature engagement, every FAA with and way. program, review. development our from we certification. the regulators every incorporate any continue learn We conversation, we product every other like every with about to And step global We advance

previously commitments. and to the continue certification to conducting work performing flight tests. as to-date collected Boeing the is make expected The We with and progress our we’ve to customers’ regulators schedule, shared we airplane suggests data including performance

We certification flight with validating results be we future, the will the to meet with prior the beginning these work continuing requirements ensure FAA to to in along near tests.

that strong Defense expect see will had shared go as in results, and to XXXX from performance the the through continue Defense, financials in detail you for quarter. XXXX, delivering Meanwhile, Services continue our late deliver We previously. his the as in businesses can more Dave we Space remarks. we Services But and our we both in the financial will first customers.

accomplishments. highlight Let few a me

refueling the team first history MQ-XX Our completed another asset & aircraft, of Space the Security Defense, aerial as made ever F-XX. unmanned our test

which its joined for U.S. Air section Air of XD operational our Force less testament the use month, critical daily the of and fuselage importance also a capabilities. than demonstration advancements the minutes, T-XA first model-based to a tanker the with KC-XXA digital design engineering the centerline aft of operational E-series We provides Earlier hose benefits. refueling first is of this drogue system, customer. production of and XX the Joint in front KC-XXA and tanker our the Forces U.S. more Force approved aircraft to

Space X Artemis our Space, System the core to to stacking orbital at Launch Kennedy of Commercial Moving test week. Center. looking the Space we’re rocket forward with Crew And began stage vehicle later of course, Starliner elements flight other we un-crewed NASA’s this of

that announced converted we opening business, new two lines XXXX. in Boeing Services Global our be in will we freighter Additionally,

UK received contract the parts a Technic support also training Turkish to and agreement Force. from a signed We C-XX key Royal Air with

efforts. technology to milestones, progress program addition we and our key made on In innovation sustainability,

Alaska with important this fly XXX-X environmental, Integrated aircraft Report, Just Alaska Boeing’s in Sustainability an collaborating to week, we program. to an first Airlines recently we announced ecoDemonstrator reinforce step our social is governance published continued we’re principles. efforts in and Also, that our which our

and new our making and leaders partnership Earlier many more aircraft the availability to National demonstrating the technologies on globally. improvements In a this fact, key focused also a SkyNRG ecoDemonstrator to enhance aviation of today, safety SAF, sustainable we month, at Reagan and is announced future. use we’re fuels, of Airport sustainable advancing support or with

this airline of facility we West first customers Americas’ dedicated commitment, the part and will in As SAF Coast. invest to help for U.S. SkyNRG airports SAF for on supply establish largely production

turn the let’s to slide the Now industry discuss next to environment.

Government Our Space businesses stable. and relatively Services, significant and remain Defense

budget Apache, the as investments as increased demonstrates services well Boeing for of F-XXEX the domestically Space off the response of While derivative confidence cycle annual others we us space The market commercial major proposal fighter, programs. products their Block programs and called fiscal and government are in for key continue System, and our we customers. and continue for SLS, XXXX. budget Launch Boeing’s is capabilities critical across appropriations on both war and on like The Congress spending non-U.S. remains solid diversity The and security. for President’s in strong has demand kicked to our BGS year tanker help FA-XX countries, to programs remain the the and global Overall, defense will from stability KC-XX authorization spending proposal portfolios. global in forward. move our for The among to the COVID-XX pressure adding as strategic portfolio BDS capabilities other such for increasing some budgets defense the as II and see the critical provide platforms. Chinook

the key in XX% accelerating, XX% the of place. XXXX remain to recovery of many In this are We’ve industry challenged intact. remain ensure of the from while fundamentals In work continue will commercial saw encouraging these to up In key global many Congress seen evolving recovery less the the we near-term the we levels, expect programs near-term, with whole to signs the the the – continues markets, airline will as as very is due work with to quarter. our We in remains some rapidly approach administration and customers than and of COVID-XX support to market, in June, travel the they environment demand. pressure a uneven. first for and necessary long-term for although be adapt departures

X reached U.S. some continues has passengers, of the travel XXXX million quarter, are bookings to it momentum traffic. then, to and summer. market with While TSA domestic XXXX vaccine levels. was some May according anticipate are up XXXX regions pick we throughput quarter significant saw and in average dissemination this traffic with XX% XX% to over place loosening, and levels, traffic U.S. is recovery. even others several broadening first remarkable Europe daily keeps the summer levels and like on below is which The restrictions tightening, is leading Since still in pressure XX% passenger before. continued already the domestic positive Continuing airlines. recovery compared showing the improvement we in domestic consistent around the

regions America such Additionally, are loosen. recently operations double and rates India, travel improvements Europe, seeing restrictions vaccine as digit Latin in monthly begin improve as to some

While of rates, with a at robust XX% has pre-pandemic levels. due it above times China remains wavered operations case recovery to in

restriction service average, XXX world the cross-border still, its fleet limited the virus. past global capacity and and load low other in such and slightly areas, coordination week the entry extremely returned active some roughly airlines Nevertheless, XX% which in four international the above rates on remains to hindering of their levels flying still historic aircraft increasing to XXXX. of around months, strains utilization size at activity although as traffic they levels, significantly over now segment. protocols of normal below approximately making And and virus May XX% XX% significantly traffic the about parts in variants are are concerns still have on single-aisle International of of recovery means passenger uncertainty per factors are Asia lower due level. previous operations And However, the with twin-aisle. are travel remain Southeast new

shifting the toughest aircraft will appearing freighter least The fleet from the medium-term airplanes to rearview with to with new in be on efficient be focus customers in of are planning. is X% factors. fleet flying XX% trend cargo replacing has removed airplanes at continues around the onset as continue being focus retired oldest, our XXXX. through the growing their to more higher the freighters X,XXX pandemic. efficient belly as impacts reductions since of anticipate to airplanes The and airplanes much With mirror, capacity significant number be this airlines May active high retired announced or to fuel with emission. be We Limited strong market in resulted will commensurate with passenger year-to-date with that more from cargo than XX% load traffic the as

air freighters. by and is being XX in XX% to for GDP both passenger improvement see shared will continue freighter long-term beyond we’ve years dedicated for a growth. still to That previously quarter. demand return in demand second IATA and XXXX of traffic XXXX to which industry by driven growth, and levels trade fact, three be to demand recovery And on cargo other with to pre-pandemic. few to of now then compares consistent airplanes trend we is phases. and This the strong experienced additional that carried to in Boeing-converted orders cargo global Longer-term, and freighters. in XXXX expect the quarter In We return groups, XX% evidenced

routes. intra-Europe, wide-body for MAX for recover haul, airplanes faster, longer by demand intra-Asia, and, we as such evidenced expect international for year-to-date demand and remain finally, as narrow-body a aircraft domestic, to XXX to First, our challenged for orders regional period. intra-Americas then Therefore, aircraft markets long

between support or global the provided all the government welcome production development we the on States and On of trade for must Union aircraft environment, that European be agreement future market United terms. commercial

will U.S. agreement. to support We enforce the efforts government’s this fully

jobs U.S. dialogue, also trade which our the the economic and to rates. a and Ultimately, prosperous customers of and our needs both planning productive in our our rely economy are of We on with the and area but a our this of of as future for benefits and mutual in U.S.-China our We importance importance leaders recovery delivery to given production well commercial And remain aerospace profile of near-term well as discussions countries industry’s all reiterating Chinese monitoring and market leadership the orders, relations, our not and trade as the of for with influence we’re urge strong on leaders to overall fleet free China – confident stability their continue active will in engage economy industry. health just millions competitiveness. fair aerospace America’s trade. aerospace of health understand business as the future

services commercial season. airlines from the and rebounding quarter the We we are for second prepared summer as saw the to the market. as improved in Turning demand trough

the COVID-XX continue we’re slightly lineup been on Overall industries bipartisan but watch may for we to support is and full economy, We will for for ahead economy, also small multi-year up, chain investment suppliers trend airlines The further across country. of it’s market versatility indicators our meet now seeing expect we businesses remains a but of recovery. are number near-term to is can like impact industry the Product of and that this the our More across challenges confident and picking improving. ours within which not our item. growth still key availability uneven. to been executing and be has and broadly, highways, a to the tens growth. economic significant thousands said, realities. our that signs a customers’ agreements industry’s activities our on the adapt product recovery, just airports be focused our expectations. and I’m to also we’re economic differentiation of bridge And industry for liquidity, well-positioned of across anticipate recovery infrastructure believe of as critical evolving positive supply labor seeing contribute needs. That remained, we With

manage sustainable. confident let right our drive with As our for in we over and safety, market to long-lasting more to leaner, actions that, sharper, recovery, and We remain a path taking we’re turn change to And business the me liquidity committed forward. quality, to I’m it Dave make position Dohnalek. transparency

Dave Dohnalek

many time transition of Thanks, Dave. CFO I’m good the at my morning, know honored facilitate to role Boeing. and and for to you career throughout in Interim be And with Great. that I Investor of everyone. It’s good smooth Relations Brian. be in from my to help a reconnecting

to turn Slide let’s X, Now please.

primarily period commercial the services benefited quarter volume. quarter due increased $XX and also earnings billion, to revenue deliveries costs. Second in to from higher Positive commercial lower

valuation contributed reflects Additionally, several quarter quarter. in from items favorably the non-recurring the benefits tax Income primarily allowance. lower to a

turn the MAX Now quarter commercial Commercial $X last was from XXX Airplanes million second The improvement impact to let’s consideration higher on deliveries. due Revenue Slide billion, to year. of the $XXX was a X. in also customer prior airplane reflecting year

Airplanes the Commercial and XXX continued airplanes margin to MAX deliveries lower it approximately period built due have improved We and under airplane stored quarter. be the commercial second currently to in costs. MAX in delivered We higher in aircraft XX pressure, Although operating quarter inventory.

in airplanes have behind We largely put now our made us. addressed to and progress some it efforts our have of issue inventory remarket and that significant

around the remaining end to XXX the half XXXX and that majority the had delivered aircraft of the of would to in in has we be of prior not by the Just end XXXX. changed. U.S., XXX estimated we MAX storage That the return of expectation aircraft service the approximately by

concessions in to or ramp material no rate assumption There discussions liability customers. change the global our of costs approvals. MAX to abnormal regulatory production and estimated the remain given XXX other timing assessment market profile We and customer for expect remaining delivery the potential considerations for environment, dynamic, our and XXX the is

XXX. Turning to

activities that Dave through light were deliveries quarter just as the we worked mentioned. Second

of costs rate our and the adjustment rework, a basis, in been production included impact position. near term. additional The will remains assessment create XXX a financial delivery breakeven. On these has inspections, delays closing second near margin in of headwind the program temporary latest quarter cash Our

However, margins we well. relatively to hold unit overall still up expect

XXXX. now Moving to

Dave of the expect still in we As mentioned, XXXX to delivery first XXXX. occur late

progress activities. flight expect peak that test flow closer use years that cash improve XXXX the late the will and flow XXXX. EIS occurred to our one after We in as We anticipate positive and to two still turn deliveries get of XXXX We first cash begin for delivery. cash program in making are we in the program will approximately

see to performance business starting our Commercial XXX costs are BCA the to efforts MAX great due in deliveries financial We Airplanes through manage transformation team improvements to increasing activities. by and

We fleet strong products in which planning. shifting and of focus quarter, the our customers’ to orders a our testament is the value to now also captured

remain the do, we the will across time a on – stability the will positive and still driving we and and business. Commercial Although on XXX recovery and take remain we we’re have focused path work program to on

Let’s to Space & Defense, now move on Slide X. Security

for favorable of KC-XXA the the adjustment helicopters program. well for revenue Royal second in an on billion increase program XX quarter, the compared the the Force. to a tanker as charge as of award contract. $X quarter We billion, program XX.X% was operating The Chinook quarter the to driven Second including XXXX tanker primarily on a Air received a on orders non-U.S. and second quarter. lack $X.X UK as to by during in volume the higher of margin P-XA due strong margin We increased posted

Germany currently We agreement reached five valued billion. for also P-XA an backlog aircraft. at is BDS with $XX

X. higher Commercial asset to billion to Global increased by impairments, by was a the Now as recovering products revenue continues also COVID-XX. Services quarter, lower helped of and the let’s mix operating Services turn severance to and from margin of driven grew and costs second margin services. favorable Slide Global lower $X.X In market Services Operating XX.X% the impact on

variability $XX During saw margin total airline won improvement we in expect of as we incremental resulting $X flight and quarter-to-quarter trajectory Services see key during quarter and said, from worth environment, quarterly to a BGS. backlog second revenue revenue contracts the the trend can now quarter, we to expect increasing dynamic That Commercial billion, the We improve support the the in given operations. approximately billion. in at BGS

Now improved reflecting $X.X Commercial expenditures let’s rates a Slide Operating and benefits cash receipts, our flow reduced significantly higher take production negative higher on look for order quarter lower on deliveries, X. cash at business efforts. to wide-body flow from the billion, transformation

While benefit we advanced a be order to this second we in into mind in expect saw rest for the year the from headwind activity payment a flow of to cash quarter, burn-down continue that keep and next.

marketable Now facilities which bank move sheet second let’s the on and of quarter to liquidity from billion ended securities to credit position. liquidity, and $XX.X remain undrawn. We our our Slide cash our discuss strong X with access including balance billion and $XX.X

the at quarter. billion $XX.X end at of stable remains the balance debt Our

the have lower total early bonds loan. maturing to paydown term We debt potential of end of the year the to our delayed expect paydown draw at of due and

Thanks our balance our our currently levels environment, have sheet. to believe vigilance managing enhance to focused liquidity. business remain dynamic in the Given we balance, We on actively debt reducing maintain we the our taken throughout cash. we cash managing sufficient and actions

we Our investment-grade credit balance us continue is strengthen aspects structure of rating important to our will to our capital and all sheet. to consider

environment. we business the in to a In dynamic next Moving slide. operate summary,

seeing commercial recovery market accelerating. We’re the

it continues across the However, near-term remains path uneven and to challenging. regions different be

backdrop, Given monitor opportunities continue cultivate risks. will to this and diligently we

regulatory travel deliveries. resumption and XXX distribution relations, MAX trade XXX remaining protocols, include of key Our and vaccine U.S.-China approvals enablers

Our the of quarterly use and updated include XXXX. will delivery flow the cash as additional to as The compared still as cash. as flow favorable and have still we year full On program of a customer MAX tax deliveries year higher cash financial performance year, this expenditures customer half continued timing deteriorated services. second enablers. in Despite expect and considerations year the variability We flow, key for of largely turn XXXX cash to such year XXXX drivers delivery cash this as timing to to we in benefits to receipts order in key With of be these flow driven payment quarter-over-quarter expected on by of pressure this schedule, positive the be activity. this improvement flow cash for due XXX expect lower respect to of XXX well advanced trajectory expect our remainder payments burn-down due recovery as payments. to in in and settlement the not expectations from commercial due cash continued well

However, advanced payments XXXX. a in headwind will still be

examine look our make are moving year expectations closing a by the back next be honored everything To focusing for Calhoun of operational future. closely from quality largely year. all our part drive to some team to will XXX continues and this do, such we to team and it that, close, Dave excellence, related change. advanced stability now to offset forward due operations year comments. cash flow burn-down of while simplify and delivery of in our streamline business, the aspects additional bright turn into higher I’ll and safety, next be long-lasting to a strong our I’m With payments our XXXX, While on deliveries

David Calhoun

it. appreciate I Dave. Thanks,

future. proud safety, that I integrity to extremely action we everything of in remain resiliency dedication in we and we team committed our do every our we As remain to the confident and I’m continue and transform take. quality, transparency business, of and our

Thanks. and your I take So to Dave with happy are that, questions.


Noah with Poponak Please first ahead. Goldman Sachs. Instructions] comes question from go [Operator Our

Noah Poponak

morning, Hi, good everyone.

David Calhoun

Hi, Noah.

Dave Dohnalek

Noah. Hi,

Noah Poponak

need MAX be the to business about and wanted in we performance you're a a higher expect had lot to to services what Thanks. the to transformation. continue last margins structural lines. to along it's the margins talked And to Is cost BDS they whether you the or where achieved and cycle given achieve march the quarter, way can those levels ask aircraft quantify any or then, XX anything rates there business, they in out quarter? gaining and this to about margins production the the I from

David Calhoun

Yes. thanks Noah, for question. that

and with start maybe So let's BGS. BDS

to think, know, you saw I And was of this pandemic some As XX.X%. business. significant before BGS, mid-teen progress that sort margin you quarter towards the

see margins a getting trajectory margins There's In mix. seeing depend from will that strong there. in variability towards a on quarter positive I we're many think path in BDS, think mid-teen on we And I programs BGS, XX.X%. many, with those back So overtime. quarter-to-quarter to but

a times. sort territory charges. Now in or a the from of the that out a adjustment benefit kind been quarter, non-U.S. in low to we program the of as some the if even that that you digit they've of well. taking margin performed And mentioned double higher was We that were not BDS stripped good due benefit of

quarter take So well across and the clearly very out we well. performed turned charges any the the that fact in that programs significant didn't

to clearly, so, in compared same then And BCA, although and we're better in margin quarter still to we've quarters recent than the been certainly year. back a negative territory, much last

I think driven rate. be a by lot there will

the XXX talked just that, of And ramping program year what in about early being next at next MAX beyond see month China are one some the in in to in that addition go just important year. we XX intend we that by obviously per the traffic up to at trends. We overall driven enablers in XX now month to per are we the of moving higher, key beginning market

So of work stability program the there. getting in mentioned, addition rate we it's to be in cutting transformation achieving especially as through as the BCA, driven we've XXX to going business production additional had final costs. And efforts issues I think course, our on traction for Dave then

Dave Dohnalek

BCA, transformation The beat we're keep key it And to get back. biggest effective. accustomed we part will sort Yes. market our that's and I'm prior, what even of leverage break margins the get to be to be It's can been rates. you quite when optimistic on. the to turns our respect reducing in working to were or with by the

forward looking So anyway, I'm that. to

Noah Poponak

David, believe the you So, even the it back all had? before production to the you used BCA sounds in like you margins way have to can have rates you you're

David Calhoun

the few Well, underlying give benefit has and dynamics do similar we are to respect come, that before. were That but the that, from We'll things and yes. mean, with where plants like consolidation measures initiatives that. to costs couple of I infrastructure intending a of us it's if rates about think a our about to when the that. all definitely you see at

about the when is we going be. we're leverage feel get rates, similar the where but rates, to I those good yes, So to in

Noah Poponak

BDS? the quickly just you Can millions in give us dollars adjustment contract of of the

Dave Dohnalek

it specific at disclosing. you be, which strip XX% don't the We if margins about that happy that again, we're number BDS, have that progress Yes. But above even out, would is we're there.

Noah Poponak

Got it. Thank you.


Myles Our next question with ahead. line Please Walton from of go UBS. the

David Calhoun

morning. Good Thanks.

Myles Walton

Dave. morning, Good

Dave Dohnalek

Hi, Myles.

Myles Walton

as six the Dave those repositioning you're XX those. some the some some to be of of back-filling in guidelines and opportunistic last Calhoun, would months the order from seem of activity

a opportunism a of months of more, really this that's get for, demands we the the you Maybe significant activity. order to to what you surge turning XX for it just six over can is So frame lot an is, positive. is expect or this next questions

David Calhoun

I The and fundamental either airplanes, of it United decisions manufacturers. order good evaluate on get side. all that passenger. cost, passenger, for then operations. you with And marketplace, lowest was to both your they they, they in a their just efficient airplanes. consider route of news of my to the around all routes, delivery a decision as as make the order on you make And XXX customer news a know, don't very is it of opportunism. with aggressive have as respect have the is good they their view The most solve the choices is opportunistic or then the when history a expand And I this capacity side When little gets.

we to competed models product intended So that it competitor. with I was up and routes the line the I they're the got out XXX, the of liked our way straight XXX, our and strategic the satisfy long-term, it went the same. I'm pleased for it's their And how and view case in optimal was and so that Southwest quite United. quite of with my in anyway, mean,

same Southwest, we future very United. they're to being the But and they routes out who their so. benefit from cetera. all strong improving it hand, These Boeing fleet from they're in reach, decisions airlines as the structures, are They're staking extending Boeing. doing it et two thing are all benefit on the do their other being and strategic making big

think, up meaning grow that play So, be to markets structures, airlines the will going They'll have and retirements and do who when can't domestic in and strong retired, predict estate sheets exactly play. forward, believe these way one are stay get most and and improve the recoveries happens. expect can't real as their into yes, we're I balance aggressive return I I who as any first see routes want opportunistic. that that the of being I to them going end robust, to same in market.

couldn't I held as gets. it itself. like predict Just sell let I the happened. and And way it ground these we and know, think That's I or step United would performance the we forward posture when But as Southwest. are strategic two airplanes our really

Myles Walton


continue half on would the if expect you So backlog the second build XX even to the a MAX year? stronger the deliveries to of in

David Calhoun

liked Yes, way timing Again, the these I and we predict can't the I competed. liked do. and of certainly I I I can't do. each way were order. every the predict I But scale and led

Myles Walton



with Liwag from go Stanley. Next Kristine Morgan ahead. question Please

Kristine Liwag

and Dave. Hi, good morning, Dave

David Calhoun


Dave Dohnalek

Kristine. morning, Good

Kristine Liwag

we payments? free path a of Can flow any ultimately, how about positive drivers of the of should you quarters through think I XXX help concession us rate MAX understand the for year? there rest mean, the to is of of cash XXXX and cash remaining run the free flow a the

David Calhoun

lumpy, burned Yes, XXXX. to I going see going as schedule. And so. payments, mentioned, also year to dependent Kristine, the is of I think effect obviously be and this second on that half delivery number one, we're out advanced the

that there tailwinds work work to deliver deliveries headwind. too, MAXs. XXX once Certainly, able complete XXX are see we the a are airplane you higher certainly So expected we And through deliveries as and is the higher again.

which positive. this cash predicting year I or be might flow quarter think, well, we're not

of will with We lot the I performance. think, QX from a certainly variable. progress flow be made cash QX it

think some I will year, work on on the and efforts we mentioned, also deliveries the sometime could as benefit payments, be Dave it I be cash the think but that a advanced of QX. in benefits half the tax transformation of QX, should also from and second business in higher the continued in could be receiving be a expectation balance rest headwinds from,

the Kristine, not that be to well So we giving see a year. of we year do would cash cash. guidance quarter, benefit But tailwinds the level. some on the we're for flow not as a see, predicting rest on But

Dave Dohnalek

good. we're underlying really basis. making And The is solid trajectory that ground on

indicative of always I We our feel I but this is the trend. good. think underlying quarterly lumps, So anyway have do quarter

Kristine Liwag

been to month, more what tests. this Chinese do news to could saw the Thanks. conduct get Earlier any aircraft willingness And if there need I feedback squeeze to on XXX. Has one you we the on certified? on flight

David Calhoun

get the to coming just in on the first year. Yes. they remember say, of with airplanes move CAAC, the into China But have let's They want down Olympics that hundred path. a dialogue want the the ground all, airlines and got they to the that

have been Technical from beginning. being with it. a lot them issues do to they natural working It's So We've the want closely constructive. resolved. to of incentive are

behind in conducted flights all In for think most yes, certification. part, us. I there the they're fact, test And be I will anticipate

before of we said, that year. end the we will get this that expect As we

don't of sides I are get Both hopefully So trade that's way. the nature how will. constructive issues anyway, I'm to about anyway move the bigger believe very going. for that, industry they this encouraged of incented And forward. don't


next question Harned from Doug ahead. Bernstein. Please Our with go

Doug Harned

Thank you. Good morning.

David Calhoun

Good morning, Doug

Dave Dohnalek

Doug morning, Good

Doug Harned

The you're XXX. appears problem. issue to it addressing, the the same be that nonconformity of new structural On type

You've airplane the last elsewhere August. been in addressing since

I an comfortable a how where what's that how Now, for problem, resolve do a production could do get and you come mean, a issue term? you going know specification to process suppliers, next across little of a up over here? of bit this it there's describe maybe on can long tolerances? it control even not quality Is occurring you be or to appears problem, place because multiple the

David Calhoun

of the heart here. I trying really to what Doug, because outlines question, we're Yes, it accomplish appreciate the

And because So This Boeing. let FAA tough tier we getting program we of notice it, We all did tough me all chain. on getting way issues of find some two. start supply exactly nose you're of the by would on tier by launched Early the we saying, of to a is we to out one, describing. not tail of Boeing things escape a did inspection out do this inspect on, is Boeing. decided

case, even talk you here. again. place immediately clear we've controls and we've for it. that fix take putting in that the one do Two, it? we type, working Three, understanding to little they keep development control necessary? of done? process sure that to side, they we we bit If supply is now on make be inside step why process put is specs that tolerances suppliers job it disciplines suppliers of to our happen you it. we're a the going it running. are do operations spec And How what's they get start going every into where Well, right. those need not is. designed. our to in won't on getting the it. That's in smallest operations line on We our FAA teams have Charleston, exactly the we to that our it to a chain that make our exception every rework then the identify to in case, we Our look we that where And the one And about are necessary isn't And

rate Here's this the light ever their the impact COVID get now. lowest ever we knocking international traffic. a our on window down us We're of get are to all add door not news. behind airplanes the once at and If for to good it's customers in producing

to determined are done toe And very news, tail. our so we're Good to see this. way right, through the inspections

each created and us So those along all it's But part are effort this that have not I put of tell Boeing. way, hats escape going these with a always drawings the inspections an issue. off hand rework every we've somewhere the every that's suppliers of these – it's Doesn't we leadership is way. precisely job and as built mean view going or respect that to which And find, not, make is and decision that we've to to issues every conditions that my here. that a this team, as for team. each a result our to what we And airplane My raise it to be and we're moment one going done. to compliance, the forward big their the courageous through. to somewhere believe our are along there's of were and preexisting to is our

predictability So and the they're when in will to world wide in work for, the going place protocols That's what the the I border body next readiness believe taken get and getting in year. we're of to understood think is second to return are will on taking that that the recovery orders half market. When I of the have it able rate to very a actions I part important respond that And happens increases think be most stable now puzzle. we're we and come, are form to the right and fashion.

the I was And guessing importantly, most we're issue close. apologize last and investors for resolved. are last So the that getting causes to do but getting and really understood I underlying our apologize

Doug Harned

bit issue, is which was up, done, the that surprise, are of of and seemed So tiny the go characterize to somewhat this which of more completion that still always this there mean, would was turned is latest of there's a now but how know that I I some risk, inspections, that? result a risks or remains, there's here? to one just be you Then

David Calhoun

This inspection part The former, our to be process. was issue. happened one two of it a tier

to that supplier’ your the supplier, premise. that through correctly. go process clearly rework largely that go supplier you through needs and your done be done So then to be implemented is control find And needs on you their to

inspection a to our is. things one comment everyone the complete is dramatically. other is sure that most from our change XX predictability and But in eliminate we'll make program again all how This off. don't like make the factory on expect Doug, I for of knows rework a, part these better chain to forward. here to of want importantly, one supply most much we fronts I important So and big the amount have just

been more no than hard is it's active fleet and period, airplane everywhere. COVID that be worked. up as worked flown XX% passenger aggressively can has body XX, this of as During it wide and being

the cetera, to asset. worked respect That's So et despite this traffic, numbers getting XX is the all with low the prized international hard.

Doug Harned

you. Thank Okay.

David Calhoun



Seth Our go with ahead. Seifman from question JPMorgan. next Please is

Seth Seifman

a that everyone. very envelope free you liability cash was little very Dave, that help hasn't much since down? a half now. And wondering morning, started. about almost at way a think to as to in Thanks how come the you headwind the about balance can to could much. much us advanced used good of kind second back I there, you XXXX flow $XX that if really It come down Is bit the mentioned a right all balance pandemic talk the billion

David Calhoun

thanks, Seth. Yes,

depending talked that's is So quarter-to-quarter, from going be on schedule, about obviously – from which delivery the vary to quarter-to-quarter. we've it's to lumpy and going

right? So in, deliveries you've We also saw come got orders happening.

you've orders subtracting same and got the time. at so in, got You've coming adding

of it's expecting cash radar as But these screen, and case, through by quarters so us out advances the overcome, be So or is than into the because flow apply next we think to of that be inventory deliveries for we we're to we headwind, number see with It's a advanced not XXXX. will PDPs positive half bottom headwind, by year. predicting just this payments, we off for this still you about through next as line do and we customer. in case more a these work customer your or think the second of will year

more XXXX, or would predict cash to we to be hard give offsetting guidance and really that expect have it's headwind. than net-net, again, we So but there, tailwinds positive flow

Seth Seifman

Okay. Thanks one. stick very much. I'll to

David Calhoun

you. Thank


And ahead. with Spingarn go to Please will next go Suisse. Credit we Rob

Rob Spingarn

good Hi, morning.

David Calhoun

Rob. morning, Good

Rob Spingarn

you, Calhoun you on first, clarification, a XXXs? Dave first question Just do That's to need question. on rework and delivered for R&D. But then the any a do

is – The the I level. half it's quarter at at think BCA for on question down second about XXXX R&D about second it's least

So, of R&D be that might start investing when investment? expect what there and will focus in the again, you to incremental and does when trough that headcount growing

David Calhoun

are associated efforts I R&D. this start we the fully broadly. will I we are that underlying mean, BCA – with I'll on Yes, my important support is premise on work term And the airplane. view XXXX. of funded XX, R&D MAX that funding I a freighter the with certification near want the hope that is the development to version in ongoing from relatively which separate

applying it you programs different are technologies to that in because. deployed just packages I have the heard be to we're will our we this be front airplane quite that itself big different development. the that seen they comment dramatically our going shorten And productivity and the and it's what thread It's going with will be development, surround will with fan. the everything to the that's the next critically to is That moment. to we next say is is would sustainable fuels the programs in promoting, the It with CFM to airplane. and our we between next on airplane most then and serious for meeting the And system be. programs on a of that Boeing spec. at because have on respect propulsion and suppliers expect sustainability. on the think to me have So, at take then any critical. fight make that a even ready the busy the it. the a development in and program fair that to package not to up most on sustainability underlying it think efficient to production commercial meet busy very to some can production don't for it. are and on be recently sustainability system the that term, be point will on important going part investments any amount be modeling not think, front digital the very our tests. just that aviation I and go likely significantly money packages modeling number improve have we stuff finally propulsion not I possibly as have exception, going be And may spending I technologies is that different will that both of relatively it's make that may do new Anyway, very been one next now you to that in near going active defense And research time this just about cycle have And the have to

to that actually So what that's quite of But are I'm the our be robust needs our a confident budgets lot. they ought I'm R&D and quite – to business. relative quite BCA

Rob Spingarn

XXX then on retrofit And that Okay. just any needed?

David Calhoun

of of the Look, sorry. FAA. safety is has of fact I'm our yes, the with on huge. Oh structural the in be that's that determination margins this that to elements most a airplanes And light the made

So, the our of world's to analyses shot it. have easiest great FA it's the go through not go taken at detail. set teams They through and their in

And But to ongoing schedules answer it so, know that. the I just incorporate ideal the maintenance really of is the of airlines. us don't for to all into

is on between of that but going it and ultimate our leave happens what two to FAA teams hope I'm to that sort to conclusions just the and that's those our and So desire front. anyway, as

Rob Spingarn

you, Dave. Okay. Thank

David Calhoun



to Vertical Stallard Research. we'll next with go Rob Please ahead. go And

Rob Stallard

good and much so Thanks morning,

David Calhoun

Good morning Rob.

Dave Dohnalek

Rob. morning Good

Rob Stallard

call, of the keep the mentioned track but is a I important issue. China this number can't times clearly really of you very on

here expected certification you'd effective certification, push got then you end need that actually of you. date, by Thank drop-dead give on December Is maybe year. sitting XX Calhoun, the Or the suppliers? your you is notice Dave out to this that cut haven't and RAM, XXX we're further on if say you the recovery have because that then it Now earlier an and to said the for the of the to you XXX? the, example, day to

David Calhoun

the year, it great If start and that importantly, with future question. moment rate certification about I'll and have following use to but within like. I a a real respect it way, the in do we're thinking it's of beginning end consider end to by getting what we if often year, to we hard actions of the of ramp to get Yes, looks get year, the the the of not we end some minute the very

is premise – that's right? yes, so And your

Rob Stallard

gives So enough that production in timeframe? supplies that still notice effectively double to

David Calhoun

Yes, I In have to respect accumulate. answer rates we the with them risks take – but I they give and to largely I okay production be have ourselves that put readiness but That's on – think words, risks that. to may us. because we’ll to We their inventory be some with is notice. we understand going take. might their they're And we yes, that, yes, and will we of mean, margin into that some other

Rob Stallard

much. very you Thank great. That's

David Calhoun



go is Please Sheila next with ahead. from Our question Jefferies. Kahyaoglu

Sheila Kahyaoglu

you. guys. Thank Good morning

aircraft follow-up in you map, So the on And just XXXX XXX delivery XX production about inventory rate at of since our today? the year of the XX beginning month inventory a Bob's half a of actually, beginning from point, down on burning the the deliveries that per assuming implies talk implies and – through to XX. we're end, month ramp rate can of the production to year, XX

profitability, just made you and for that of make how that So on Dave China do BCA breakeven? on last also you that basis? we mean regional kind about on then you think regions? does kind hit visibility point did and the of And of What when what on other kind profitability assumptions

Dave Dohnalek

throw respect scheduled deliveries. rate real to But ramp a the can't our remainder precise at are on for so we that production. with day and subject much I have profitability. Well, dart the the we be year of a of Not

get think pretty make that we confident as dent. we And a do year. then I'm begins high as that. can I as big the And to we XX exit

largely We de-risked have for year China. our

So, to next they respect risk year's with become delivery.

we we're signals are already play hard we demonstrated. what I think ramp So, And we’ve will if do to respect adjustments, But before well that will. have with to make And we and for think we as is to that. run I close delivery we'll as we have rate. that where China prepared that can,

I delivered the over granted And we're think think big I I said, and to know as speed. has do know full us got month the been don't over authorities I fantastic. we FAA how performance in XX. airplane it, has our We've of teams, they of the XX running June. the

So, for of a will know. risk know but year on I prospect, talked right, is definitely as Again, de-risked this again, mostly it's part next is when that your remain be China year, we'll we is premise we earlier. confident but

Sheila Kahyaoglu

you. Thank

Dave Dohnalek



with please Ron Epstein from of ahead. And America, go question Bank our next

Ron Epstein

Hi Dave, how are you?

Dave Dohnalek

Hi, Ron. Good.

Ron Epstein

Just some has sitting engineering at out press about some the more fellows seen maybe How ranks Boeing. a we've and senior how bit the, senior off? in a at engineering do ranks, brain engineering question There on you you front. are the drain of been Are addressing about think level, Boeing, you that? that particularly that, a some maybe technical the taken of the worried

Dave Dohnalek

life. every my you seasoned in businesses to what's With there's lot a, – gosh, veteran of of every happen, been engineering, an well they With engineering going first knowledge. my as of retirement of I've all, awful carry Boeing, in most oh a always because know, in

so, as I norm. that a accept And

the hand, those and and and as actions are more moments their they we've These all few a train in this good. behind trained mostly And them out they've industry, up good part they all that to relation big us. engineers people voluntary of these good had step happen, all up see whatever and impressive On years for to when very other are just as like where could the folks same they they step aerospace on work natural, them. hard best that the

great I not seen. And that which I the just I a ever who with highest highly the worry have seeing, some based younger do world. never qualified, can't, ever pretty the in And there also company. got chances. don't of is the competition input, I The who in coin. some an great. jobs our is always so, we start like And of I of getting engineers really Most I technologies are have anyway. calls. start the of amazing engineers We've on kids’ incredibly ruthless I engineering in about worry everybody, to not and Boeing improve. traveling their many but continue cyber away now ways, most their of these the But sides industry, group side left on. across phone a the are I folks Silicon under profile projects, don't Life two folks. folks one We aerospace come love meaning you, these And mission are I folks studied bigger, I'm promise to and unimpressed. The those a mission. we in got about motivated which goes Company the and all function return it. been career will Valley good our

it, I've out our seen outside I from the technical quite I'm look, So, read in, in I the inside confident from concern team. the it, understand but

Ron Epstein

a as out a mean, an are Boeing? doing getting to of you highlighted. best? like a which interesting logical startups come there's of And even fact, what lot recruit in lot to in the now aerospace, folks are you best follow-on, you I time. there's to the So, just choices there is How

Dave Dohnalek

many the you the Big allows we We a got internships, personally of in to lot of I discussions active COVID. them, world This internships. interns. them down with during slowed never that. participate virtual do

It's engineers to want continue. do. and to deep space, the Most want software country. So help highly These they these what It's the like that's really They right? we to go They qualified things. data these are engineers, of mission. we something will their meaningful mission. protect analysts and

and the our Anyway, some be particular technology, easy and they of set them want best to Move might because can deeper. then to go that go, recruit try assignments them try as can us do they world the leader So, there things as do a go get. because on. around, we just we mission, because we are to is to of a big then footprint. our them for can vision, just Those deep give Boeing attach they them to of our

I to on them. Boeing active in confident So personally on active am it. anyway, brings we're and it I'm what

Ron Epstein

Thank you.

Dave Dohnalek

Yes, you. thank


is next go Our Research. Please Melius with Carter ahead. question Copeland from

Carter Copeland

gentlemen. morning, good Hey

David Calhoun

Good morning, Carter.

Dave Dohnalek

morning. Good

Carter Copeland

on line. based you question earlier, didn't efficiency delivery for Just be the pretty that tip that kind given close loss talked know backend, in XXX that one given either better. stood. previous Was the that you'll forward lower, terms on you've taken had program, rates just been where the related was to the you I of actually, that on the to on now surprised you I the about of a And of you actually Dave, disclosures

you you guys lower us the any help how on be Just despite Thanks. could helpful. color avoided that production will

David Calhoun

for the know a are adjustment, Yes, production with Carter, timing, to rate delivery, additional this are have there. costs some there us But puts also positive yes, that into go margin maintain associated rework, cetera. and enabled there that, et you question. the takes thanks as, other Certainly,

to every still we our to detail auditors, we it's get that in moving north examine thing et where with we, to got do so, it it, very And cetera. quarter obviously to higher. – work near zero, keep And it's to we've this want approach be, along

we And the so, we some and cost just offsetting said, stability don't up all back have it's about ourselves obviously, margin. that march that Dave enough benefits RFL And starting in additional an so are find to side position. and as that in achieving

Dave Dohnalek

that don't assumptions any forward do there, productivity respect know we don't because we that. not outlandish to have is made with We

half So baked. anyway, baked, it's this not is fully

Carter Copeland

gentlemen. Great. Thank color the you for

David Calhoun

Yus. Thanks, Carter.


we'll go next, to Global. go ahead. Seaport Richard And with Please Safran

Richard Safran

are good How morning. you? Everybody,

David Calhoun

are Rich, Good, how you?

Richard Safran


on think if wondering case. current outlook I wanted comments there? could freight an your demand, strategy opening expand about Your you remarks improvement I if drive would and your Dave your know and the freight long-term about to So, that's

And freighter then Dave, coming threat? freighters. XXX XXX you that address plans to about are and was strategy might standards. a is are going talking Second, and on finally, product here XXX you for those am any I'm comment I I to to get just new meet correct to your Airbus this freighters? address trying that standards impact there overall wondering emission the if how

David Calhoun

the freighter confident Yes, quite I am in market.

things I are have that secular very going think a to important market. that continue there happened some make

in you it place logical need we and that market develop have As ICAO relationships. place compliant prior to new ICAO some in XX demands, circle customer the are years confident the that. implemented. to couple and freighter a And know cetera. additional standards will do the to significant additional XXXXs, the drive especially I and I'm XXX being next opportunity. for of the that et smart We version long-standing

that one confident next advantages major will the be and/or of have our So, long-term incredible suggesting it as freighter I'm launched might for that an the customers. day, incredible our we're plan be And that that by without we've and we said, already programs. I confident with

some stand. exemptions the in anyway, meantime, to kind strategy So that If that efficient the ICAO opportunity plus way, accommodated by most where language are there less to maybe And shape it compliant. moves is U.S. and new have the that that like are we transition friendly. that airplanes environmentally opportunity. a within XX Because or this or in less that's form for or our when exist UPS a ICAO be of Government or importantly, XX% recall, know, don't you'll displaces FedEx into that XX% a, know allow

in is, hand. I my don't help some implemented can itself. an think, so that tip That's my there be And strategies step greatest in that. But what's forward So, mind should us I on transition and yes, will airplane got need that interest. we to

Richard Safran

color. the for thanks Great

Maurita Sutedja

analyst for we question. more Operator, have time one


Please von And from Rumohr that be will Certainly. go ahead. Cowen. Cai with

Cai von Rumohr

much Yes, squeezing thanks me in. so for

and are surprised situation is I I been that And nothing that the going Dave, okay. on a year your without expecting I you it wanted with while political downhill. everything China comment end, was So, approval progress airlines testing, little happens by because by that China get making read in has

any is, your specific Chinese So, signs either you Government give expect approval those from the the Thank make by you to are projection seeing contact to see the a the you. year-end? that that from through confidence question government U.S. or would you

David Calhoun

to state obvious. advantages as then the ways we risk-free airplanes the to, the fastest Olympics respect an China be. the in recover never is It's market. it the substantial relates all the on and domestic and been of not, traffic it both real. the economy a are the this I that And need some anything front. has want The the strains with relations, which to will me from needs that COVID let just preparing Especially on equipment, again, in well. on for ground, and for for that sides from see economy Yes, don't to the XXX imply amount as and

to this So, all where needs up prevents is needs support it of airlines from nothing that line accommodate is There happening. to those traffic that be. and they to trade

And employment and it, our So, in I critical that that is there's And fact world. can't a it. nothing you prevents course written leadership to it. do fully government is says mean, our industry appreciates understands and leader holds. that that of that there's China in the nothing that the so the

and country do I a would have they are. of we new numbers support big big customers. in sort and structural agreement, to we want it there is vice these you between So, China of free to and and way just like course whom where want without of and launch a some right to anyway I stay the import our to having that’s trade to the States. on importance. this the been if weren't. do both that that as And the opening sort to constructive look, corridor. between players, look going exist And United partners them be at continue We to just All trade plenty versa. two we're of so of tell things It's understand part are all this support

Cai von Rumohr

you. Thank

David Calhoun



thank that right, conference joining. earnings second And you XXXX call. completes quarter for Company’s All The all Boeing