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Speaker 1: Welcome back to the Paris show. As ever, the battle

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Speaker 1: between Boeing and Airbus front and center. But it was

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Speaker 1: interesting coming into the show. We've seen a whole raft

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Speaker 1: of orders. Boeing getting orders from a whole range of

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Speaker 1: airlines including Ryan Are a huge order coming through from

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Speaker 1: Michael O'Leary. So maybe the battles started a few weeks back,

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Speaker 1: a few days back, certainly. So let's stalk out where

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Speaker 1: we are. There's a lot of things going on. Stand

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Speaker 1: Deal is the right person to ask those questions too.

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Speaker 1: He is the CEO of Bowing Commercial Airplanes. He is

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Speaker 1: the lead figure for Boeing here at the show. This

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Speaker 1: is your hunting ground. It is going to be a

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Speaker 1: busy show. How busy is it going to be? I

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Speaker 1: just got back from my arthur the airlines there. I

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Speaker 1: have never seen more excited airline CEOs.

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Speaker 2: Totally agree with you guy.

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Speaker 3: It's probably the busiest I've seen the industry post the

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Speaker 3: exhaustion as Shark Lake Colvid and I think you're going

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Speaker 3: to see your orders. But you also see the robustness

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Speaker 3: around the discussion and the supply chain. There's a lot

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Speaker 3: of people here trying to convince Boeing that they have

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Speaker 3: a better idea in terms of how to source and

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Speaker 3: prepare parts. So that's going to be part of the discussion.

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Speaker 3: And then investors are looking here as well.

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Speaker 1: Is there things or airlines are over ordering? As you say,

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Speaker 1: this seems to be a kind of a bit of

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Speaker 1: exeberance around of the mind.

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Speaker 2: Well, it's definitely a supply constrained market.

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Speaker 3: From our perspective, we're trying to bring rates up responsibly.

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Speaker 3: That puts a little pressure on the airlines to get

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Speaker 3: into the order books.

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Speaker 2: No, I don't think so. I think is you.

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Speaker 3: Look at our order books, they're extending from now all

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Speaker 3: the way out into the twenty thirties.

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Speaker 2: So it's a.

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Speaker 3: Nice level ordering through that stream. The economic indicators we

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Speaker 3: look at and we published our market Outlook report forty

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Speaker 3: two thousand, six hundred airplanes over the next twenty years,

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Speaker 3: would say, no, they're not order ordered.

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Speaker 1: How you've got You've got a huge order book and

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Speaker 1: now our bodies are pretty much sold out. You're looking

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Speaker 1: at a situation where why bodies are going in the

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Speaker 1: same direction. How do you price this far in advance?

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Speaker 2: What inflation is as volatile as it is right now?

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Speaker 3: Sure, well, first you work productivity to try to offset

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Speaker 3: your costs as much as you can on escalation.

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Speaker 2: You know, it's a competitive market.

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Speaker 3: We have to we have to convince our customers the

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Speaker 3: value of our airplane first and foremost. We think that's

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Speaker 3: what the product lineup of Boeing brings fuel burn in

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Speaker 3: double digit terms in terms of benefit. But our competition's

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Speaker 3: fierce out there, so we do our best to convince

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Speaker 3: our customers great value with Boeing, the price should follow,

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Speaker 3: and then the competition's on.

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Speaker 1: Why is this industry struggling so much with supply chain?

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Speaker 1: Why is this industry struggling so much with labor? Other

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Speaker 1: industries they've got it legs, they fixed the pup lix.

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Speaker 3: Why is airspace still dealing with this much longer cycle

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Speaker 3: industry than others? You know, you think of our supply

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Speaker 3: chain going all the way back to raw material, which

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Speaker 3: is four to five years out in the depth of

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Speaker 3: the supply chain, So labor being the biggest contributing factor.

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Speaker 3: We went through COVID, a lot of labor moved out

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Speaker 3: of this industry. We're bringing it back. And then we're

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Speaker 3: focused on the training and the skilling.

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Speaker 1: Of this The lesson is the lesson don't lay people

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Speaker 1: off during a downsill.

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Speaker 3: Well, the hindsight there would see it's like capitals right, absolutely,

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Speaker 3: you'd say that, you know, but each exhaugen and shock

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Speaker 3: is unique. It's tempered me on how I approach labor

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Speaker 3: on the forward looking view.

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Speaker 2: I think we're going to be a little more conservative

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Speaker 2: on that.

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Speaker 3: But each crisis you've got to stare into and decide

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Speaker 3: how do you manage this company moving forward?

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Speaker 1: As you said the Splitt chain's coming back. I understand

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Speaker 1: you're talking about the fact you've got to take the

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Speaker 1: seven three seven line up to thirty eight.

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Speaker 2: When's that going to happen?

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Speaker 3: Look soon, I'm not going to give you an exact date,

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Speaker 3: but it's it's oh, absolutely within the year, and we're

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Speaker 3: very near that moment. A running at thirty one, we're

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Speaker 3: about to go to thirty eight, and then we'll look

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Speaker 3: at a break in the forty two before the end

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Speaker 3: of the year.

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Speaker 1: Before the end of the year, you think you'll be

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Speaker 1: a forty soon, Yes, okay, let's talk about what else

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Speaker 1: is going on. You've got a seven to sixty seven

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Speaker 1: program that is going to struggle with ICO regulations. The

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Speaker 1: mission regulations is coming up. You've applied for an exemption

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Speaker 1: on that. Does that mean I'm not going to get

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Speaker 1: I'm not going to see a seven eight seven fracs

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Speaker 1: or anytime soon.

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Speaker 3: Look, I think the seven six seven today on the

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Speaker 3: environmental front does a great job in terms of per

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Speaker 3: Ton delivering the right emission answer. In the future, we'll

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Speaker 3: look at other variants the seven eight sevens and next

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Speaker 3: natural Act because it's got the right size, it's got

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Speaker 3: the right.

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Speaker 1: If you get Ji Coo exception, do you go straight

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Speaker 1: for it.

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Speaker 3: We'll look, We're looking at it, But right now we're

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Speaker 3: very focused on the sixty seven is the next solution.

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Speaker 1: Let's talk a little bit about kind of what comes next.

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Speaker 1: This is an industry that is going to be supply

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Speaker 1: constrained for a while by the looks of things. Is

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Speaker 1: that something that you are going to use your advanced age?

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Speaker 1: It was really interesting the car industry during the downside

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Speaker 1: learn that it could make fewer cars to make more money.

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Speaker 1: Does that apply to the aerospace industry as well?

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Speaker 3: Well? I think what we look at is, you know

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Speaker 3: what the long term demand needs to be, and then

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Speaker 3: we have to factor in what can the supply chain do.

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Speaker 3: We've always tried to be conservative in terms of net output,

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Speaker 3: not to overproduce to the market. We know that is

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Speaker 3: bad for pricing, and we're going to be responsible on

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Speaker 3: responding demand. And it's got to be done within the

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Speaker 3: capabilities as supply chain. So I think it's it's a

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Speaker 3: long and short We want to try to run right

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Speaker 3: at demand or slightly under as a Boeing company, never overproduce.

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Speaker 3: Keep the financial viability of the assets there for the

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Speaker 3: airline and those who invest in these assets.

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Speaker 1: I'm i gonna see a big older today. I'm not

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Speaker 1: going to see a big older Tomorrow'm gonna see a

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Speaker 1: big order.

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Speaker 3: I think you'll see orders at the air show, guy,

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Speaker 3: Boeing orders. We've got to see some nice orders. Just

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Speaker 3: remember this is a four days show. We have three

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Speaker 3: hundred and sixty four days in a year. It's only

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Speaker 3: four days, so every day is an order day for us.

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Speaker 1: We like it when they all come together Standale. It's

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Speaker 1: fantastic to see you as Ev and thank you very much, Steve.

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Speaker 2: Thank you guys us here at Blue Bug