WEBVTT - Boeing CEO Dave Calhoun Talks US Election, Safety, China Competition 0:00:00.120 --> 0:00:04.080 Dave Calhoun, the Boming CEO, sitting down with Bloomberg's guy Chance. 0:00:04.360 --> 0:00:08.119 The conversation you want to tune into. Let's take a listen. Recently, 0:00:08.640 --> 0:00:11.160 you've obviously had a series of safety incidents that have 0:00:11.600 --> 0:00:15.360 put you back. You're seeing that reflected in the financials. 0:00:15.520 --> 0:00:17.720 You are now on a journey to change the culture 0:00:17.720 --> 0:00:20.000 of the business, to put the financials back on a 0:00:20.079 --> 0:00:23.119 more even keel. We see this day in and day out. 0:00:23.600 --> 0:00:25.520 Give me a sense of the timeline you're working with here. 0:00:25.560 --> 0:00:27.880 How long is this process gonna take? 0:00:29.520 --> 0:00:32.159 First of all, the best answers to the question, is 0:00:32.200 --> 0:00:34.519 it's going to take as long as it's going to take. 0:00:34.720 --> 0:00:34.960 Yep. 0:00:35.760 --> 0:00:38.320 And one of the flaws any of us can get 0:00:38.360 --> 0:00:41.640 into is to predict that moment. But I can predict 0:00:42.200 --> 0:00:45.000 circumstances that will define those moments. 0:00:46.920 --> 0:00:47.640 Everybody knows. 0:00:47.640 --> 0:00:50.600 When this started, it was with a couple of horrific, 0:00:50.640 --> 0:00:56.480 horrific accidents where lives were lost. A company at that 0:00:56.560 --> 0:01:02.200 moment in time had a very difficult experience what I 0:01:02.320 --> 0:01:06.360 call the lack of transparency, the unwillingness to take responsibility immediately. 0:01:06.920 --> 0:01:08.280 And I've been candid about that. 0:01:09.840 --> 0:01:15.479 I believe transparency of all things and relative to all cultures, 0:01:15.600 --> 0:01:20.280 is about the most powerful word I've ever seen. Any company, 0:01:20.360 --> 0:01:23.240 especially large scale companies, who are willing to be transparent 0:01:23.360 --> 0:01:28.320 about everything, they'll suffer less because the minute you start 0:01:28.360 --> 0:01:31.280 to hide something in a big company, others notice and 0:01:31.360 --> 0:01:34.319 they might hide. And I'm not suggesting there was nefarious 0:01:34.400 --> 0:01:37.319 or anything of the sort, but transparency is. 0:01:37.319 --> 0:01:38.800 Like the most critical thing in the world. 0:01:38.959 --> 0:01:43.120 And when we started this what I call the recovery moment, 0:01:43.280 --> 0:01:46.840 which was beginning of twenty twenty, we made wholesale changes 0:01:46.840 --> 0:01:49.880 to the leadership team, We made wholesale changes, began wholesale 0:01:49.920 --> 0:01:50.760 changes to the board. 0:01:52.840 --> 0:01:57.120 We stopped production of the Max. 0:01:58.480 --> 0:02:00.600 So we went a full year year in a month 0:02:00.640 --> 0:02:07.000 without producing a single airplane. Created a safety office based 0:02:07.000 --> 0:02:10.160 on lots of experiences that the FAA had working directly 0:02:10.160 --> 0:02:14.560 with airlines. Ironically, they mandated a safety management system for airlines, 0:02:14.600 --> 0:02:17.560 but not yet for the manufacturers of the supply chain 0:02:17.600 --> 0:02:18.240 in the industry. 0:02:18.760 --> 0:02:20.360 So we decided we would take that. 0:02:20.720 --> 0:02:23.640 We would learn everything that we could create a safety office, 0:02:23.880 --> 0:02:26.799 and most importantly in that is stay tuned to the fleet, 0:02:27.040 --> 0:02:29.440 know what it's doing every day all day, and then 0:02:29.480 --> 0:02:33.400 be transparent about everything you see and get good at that. 0:02:34.160 --> 0:02:38.040 So take that forward, and this is where I'll start 0:02:38.080 --> 0:02:44.359 to approach the experience we had with Alaska Airlines, which 0:02:44.560 --> 0:02:48.360 was the depressurization event and the escape of the door. 0:02:49.320 --> 0:02:51.040 So our supply chain. 0:02:52.400 --> 0:02:56.480 And ourselves started production in the first month of twenty 0:02:56.600 --> 0:03:00.960 twenty one from a rate of zero and a workforce. 0:03:01.680 --> 0:03:03.720 While we hadn't laid it off. 0:03:03.840 --> 0:03:06.639 We had moved it to a whole variety of places 0:03:06.680 --> 0:03:09.280 around our factories, and then we had to move them 0:03:09.280 --> 0:03:12.840 back and remobilize all of that effort. 0:03:13.400 --> 0:03:16.000 At the same time. I haven't even mentioned COVID. 0:03:16.840 --> 0:03:21.480 That happened, so demand for airplanes fell precipitously. We know 0:03:21.600 --> 0:03:23.840 that it also shut down our two factories because the 0:03:23.840 --> 0:03:26.440 first case in the US was right between them, literally, 0:03:28.000 --> 0:03:31.440 so we had a moment that's hard to describe. 0:03:31.440 --> 0:03:33.200 But then we had to begin the mobilization. 0:03:34.080 --> 0:03:39.360 And I would agree with everything Giome said about the 0:03:39.400 --> 0:03:43.160 supply chain and the ramifications of COVID on the supply chain, 0:03:44.560 --> 0:03:50.080 the turnover of experienced people, the loss of really important skills, 0:03:50.520 --> 0:03:53.560 and then coming back in a much slower and maybe 0:03:53.600 --> 0:03:57.320 a bigger word sporadic pace than any of us had 0:03:57.480 --> 0:04:00.520 hoped for. Maybe we should have expected it, but at 0:04:00.600 --> 0:04:03.040 least we were hoping for better than that. So for 0:04:03.160 --> 0:04:07.040 twenty one and twenty two and twenty three, we were 0:04:07.080 --> 0:04:10.720 gradually bringing up the rates. Demand for airplanes came back 0:04:10.760 --> 0:04:13.120 faster than any of us ever imagined it would, and 0:04:13.160 --> 0:04:15.960 it came back in a robust way. We were increasing 0:04:15.960 --> 0:04:19.799 our rates, but a little bit of an issue began 0:04:19.839 --> 0:04:25.440 to arise. You may know, when nonconformance gets to your 0:04:25.480 --> 0:04:29.360 factory and you have the capability to fix it, you do, 0:04:30.440 --> 0:04:31.919 and you can do one of those, and you do 0:04:31.960 --> 0:04:35.279 two of those. But when it starts to overwhelm the 0:04:35.320 --> 0:04:38.200 positions in your factory and you're doing more and more 0:04:38.200 --> 0:04:42.080 of that kind of work, or simply trying to accommodate 0:04:42.160 --> 0:04:45.040 a part that didn't show up. Ye didn't show up 0:04:45.040 --> 0:04:47.159 when it was supposed to be to in position two, 0:04:47.400 --> 0:04:51.839 let's do it in position four. So this happens, and 0:04:51.920 --> 0:04:54.520 it migrates, and it migrates into the factory. And I 0:04:55.240 --> 0:04:59.440 will say, while it was not the specific cause to Alaska, 0:05:00.040 --> 0:05:03.480 in my view, it was the systemic cause. It was 0:05:03.560 --> 0:05:07.680 the issue that created the opportunity a little bad behavior 0:05:07.720 --> 0:05:10.520 without a doubt on the part of somebody who we 0:05:10.520 --> 0:05:14.080 don't know yet, but it created an opportunity in the 0:05:14.120 --> 0:05:17.000 last position of a factory to then allow for an 0:05:17.120 --> 0:05:19.600 escape which we are not allowed to do and never 0:05:19.640 --> 0:05:22.839 will be allowed to do. So that was sort of 0:05:22.920 --> 0:05:25.760 a you know, a short story of a long set 0:05:25.800 --> 0:05:26.320 of issues. 0:05:26.360 --> 0:05:30.279 But what do you do when this stuff happens? You? 0:05:30.279 --> 0:05:32.040 You know, this is what I love about the industry, 0:05:32.080 --> 0:05:32.919 just for what it's worth. 0:05:35.440 --> 0:05:43.039 Eighteen or nineteen eighty nine, a United Airlines lost aircraft 0:05:43.120 --> 0:05:45.640 in Sioux City, Iowa, and there were. 0:05:47.560 --> 0:05:50.960 Many fatalities. I was a ge. 0:05:54.200 --> 0:05:58.080 It was a total moment for Ge on the subject 0:05:58.080 --> 0:06:02.280 to say, if he a complete overhaul of the business, 0:06:02.360 --> 0:06:08.400 the company, its approach to engineering, the maturity of design practices, 0:06:08.440 --> 0:06:11.839 and the allegiance to the skills that are required to 0:06:12.400 --> 0:06:15.680 perfect the mature a design practice. Lots of details, but 0:06:16.160 --> 0:06:18.400 it was an overhaul of the entire company. 0:06:19.200 --> 0:06:20.960 And I also remember when. 0:06:20.839 --> 0:06:22.800 I came in as CEO at the end of the 0:06:22.839 --> 0:06:27.880 next decade in nineteen nineties, it was it's like it 0:06:27.960 --> 0:06:33.719 happened yesterday. Every employee remembered it, they understood it, their commitment. 0:06:33.720 --> 0:06:36.240 Design practice has always started with a brief discussion on 0:06:36.279 --> 0:06:38.719 what happened in Sioux City. 0:06:38.880 --> 0:06:41.320 That's going to be us. That's going to be us. 0:06:41.400 --> 0:06:44.240 And I don't know exactly when that moment is, when 0:06:44.240 --> 0:06:46.919 we're starting to feel really stable. I think in the 0:06:46.960 --> 0:06:51.359 engineering world and our commitment in the design space, human factors, 0:06:51.400 --> 0:06:54.640 all the things that led to the real tragedies at 0:06:54.720 --> 0:06:58.320 Lionair and in Ethiopia, I believe that those fixes are 0:06:58.320 --> 0:07:01.240 in place, and now we're maturing, maturing, and we don't forget. 0:07:02.040 --> 0:07:04.120 And now I think in this Alaska moment and the 0:07:04.360 --> 0:07:07.359 escape that we got from our factory, I think the 0:07:07.760 --> 0:07:13.080 comprehensiveness of our plan, our willingness to take responsibility in 0:07:13.160 --> 0:07:17.120 the first instance, send a clear message to all of 0:07:17.160 --> 0:07:20.560 our company. The transparency will be paramount in this process. 0:07:21.720 --> 0:07:25.200 We presented this comprehensive plan to our regulator. Here's one 0:07:25.200 --> 0:07:27.240 thing I want to makeure everybod understands this is our plan. 0:07:27.280 --> 0:07:31.240 It's not our regulator's plan. This is our plan. It's 0:07:31.240 --> 0:07:35.640 not our regulator's plan. They will provide oversight like they 0:07:35.680 --> 0:07:39.000 do and they will regulate us, but it has to 0:07:39.040 --> 0:07:41.800 be us. We got to believe in it, we gotta 0:07:41.840 --> 0:07:43.480 love it. We got to want to do it, and 0:07:43.520 --> 0:07:44.280 we got to take the. 0:07:44.240 --> 0:07:47.880 Pain that goes with slowing down the factory. We got 0:07:47.920 --> 0:07:48.520 to take the pain. 0:07:49.320 --> 0:07:52.240 And if we slow it down and stick to the 0:07:52.280 --> 0:07:58.400 disciplines that will synchronize this supply chain with the insatiable 0:07:58.440 --> 0:08:02.640 demand for airplanes and stay disciplined on that, we will 0:08:02.680 --> 0:08:04.480 put all this in a rearview mirror and we will 0:08:04.480 --> 0:08:06.320 be way better for it. And there will be a 0:08:06.360 --> 0:08:08.640 moment later in life where someone will look back and say, 0:08:08.680 --> 0:08:11.520 this may have been the most important moment in Boeing's life. 0:08:12.720 --> 0:08:14.760 So what advice do you give to your success? What 0:08:14.840 --> 0:08:16.840 kind of person does that success need to be? You 0:08:16.960 --> 0:08:19.640 just lay out what needs to happen, What kind of 0:08:19.640 --> 0:08:22.559 person is going to be delivering that kind of plan. 0:08:22.800 --> 0:08:24.400 What kind of person would you like to see? What 0:08:24.480 --> 0:08:27.800 kind of person needs to be in your chair to 0:08:28.320 --> 0:08:29.760 do what you've just described. 0:08:30.680 --> 0:08:33.560 Again, I'll just start with a word transparency. You just 0:08:33.600 --> 0:08:35.520 can't click for a minute, There's there are no. 0:08:35.679 --> 0:08:37.079 But is it an external candidate? 0:08:37.360 --> 0:08:39.640 Is it an internal I know, guy, I'm not going there. 0:08:40.200 --> 0:08:41.240 So well, we can. 0:08:41.160 --> 0:08:42.920 Go anywhere you want, but we're not We're not going there. 0:08:43.000 --> 0:08:45.760 I will just tell you this it'll be a deliberate process. 0:08:45.800 --> 0:08:49.120 It is Yep, it has been thought through. They will 0:08:49.160 --> 0:08:51.040 get to a conclusion. It'll be a great one and 0:08:51.080 --> 0:08:53.800 I'll be the most supportive player on the field. 0:08:54.440 --> 0:08:56.400 But it's going to be it's going to be an 0:08:56.400 --> 0:08:58.360 ongoing journey. This is not something that's going to be 0:08:58.360 --> 0:09:02.400 completed easily or quick. What you've just described is something 0:09:02.440 --> 0:09:05.360 that happened over many years. How symmetrical it's been. 0:09:06.080 --> 0:09:10.120 Again, you're getting way too into this one, this process 0:09:10.160 --> 0:09:12.200 and the thought process around what it takes and what 0:09:12.240 --> 0:09:13.400 it is, who it is. 0:09:13.440 --> 0:09:15.840 And remember I'm sixty seven going on sixty eight. 0:09:17.000 --> 0:09:19.520 This is not like we woke up and here, let's 0:09:19.520 --> 0:09:23.040 go do it. It's a methodical It'll be well done well, 0:09:23.160 --> 0:09:25.560 and it'll be well articulated, and it'll be timely. 0:09:26.520 --> 0:09:28.679 And Boeing will be a different company as a result 0:09:28.679 --> 0:09:29.480 of it. Is. 0:09:29.880 --> 0:09:31.920 It is a different company. If I didn't believe that, 0:09:31.960 --> 0:09:36.160 I wouldn't go Everything that we've put in place, our 0:09:36.240 --> 0:09:39.120 commitment to transparency, the extent to which we practiced it 0:09:39.800 --> 0:09:44.280 post Alaska, the extent to which we practiced it post Alaska, 0:09:44.400 --> 0:09:48.439 in full visibility to every interest that had been surrounding 0:09:48.480 --> 0:09:51.120 us for the last five years made a difference and 0:09:51.160 --> 0:09:54.600 it will continue to make a difference. And I believe anybody, 0:09:54.679 --> 0:09:56.679 and by the way, our board now is educated on 0:09:56.720 --> 0:09:57.240 what it means. 0:09:58.000 --> 0:09:59.320 Anybody who comes into. 0:09:59.080 --> 0:10:02.320 This role has to start with that thought process, that 0:10:02.400 --> 0:10:06.200 notion and the rest of these initiatives and efforts. In 0:10:06.240 --> 0:10:12.000 my view, that'll be the momentums there. It'll continue. And 0:10:12.040 --> 0:10:14.800 if I always give somebody a warning sign, it's pace. 0:10:16.760 --> 0:10:19.080 First question. First question you ask me, when is it 0:10:19.080 --> 0:10:21.120 going to be done? Well, it's going to be done. 0:10:21.120 --> 0:10:24.200 When it's going to be done, and be patient and 0:10:24.360 --> 0:10:26.160 keep the supply chain synchronized. 0:10:26.400 --> 0:10:28.560 The metrics we should look out for, the metrics moster. 0:10:28.640 --> 0:10:33.040 Actually we posted the metrics that we're looking at, so 0:10:33.080 --> 0:10:37.720 they're transparent for everybody, transparent for our regulator. So yes, 0:10:37.760 --> 0:10:40.320 And what those metrics are meant to represent in a 0:10:40.400 --> 0:10:42.359 factory is stability. 0:10:43.600 --> 0:10:45.200 How important is Bowing to America. 0:10:46.240 --> 0:10:49.200 I you know, I believe it's the most important company 0:10:49.200 --> 0:10:52.960 in the world. And I'm not objective, but here's the thing. 0:10:54.760 --> 0:11:00.640 Here's the thing. Our mission is to protect, connect and 0:11:00.760 --> 0:11:03.960 explore the world. Just think for a second about each 0:11:04.000 --> 0:11:04.840 of those how. 0:11:04.679 --> 0:11:10.839 Important they are to the world, and particularly now I 0:11:10.920 --> 0:11:14.679 love Gilm's answer to the question on do we need 0:11:14.800 --> 0:11:16.199 four or five more competitors? 0:11:18.480 --> 0:11:21.040 We need two great ones, and yeah, there will be, 0:11:21.080 --> 0:11:21.520 there will be. 0:11:21.760 --> 0:11:24.480 We have course we do. 0:11:25.000 --> 0:11:27.079 Of course we do. Of course we do. 0:11:27.520 --> 0:11:30.400 We take off and land every second of every day, 0:11:31.520 --> 0:11:35.640 every second of every day, we deliver safe air planes. 0:11:36.000 --> 0:11:40.360 This is this is if I've no question about about that. 0:11:40.880 --> 0:11:43.360 But just stop for a minute. There's two guys that 0:11:43.640 --> 0:11:44.040 do this. 0:11:44.200 --> 0:11:48.360 Connect the protect which nobody really talks about with respect 0:11:48.360 --> 0:11:51.040 to Boeing and the work that we do for our 0:11:51.120 --> 0:11:54.040 US military, and now, way more importantly, as we move forward, 0:11:54.640 --> 0:11:57.920 the growing work we do for the allied forces around 0:11:57.960 --> 0:12:00.080 the world who are all contending. 0:11:59.640 --> 0:12:00.480 With new threats. 0:12:01.320 --> 0:12:04.679 That's a whole new It's not a whole new opportunity, 0:12:04.679 --> 0:12:06.880 but it is an opportunity that is getting all the 0:12:06.920 --> 0:12:09.800 emphasis that it could possibly be getting. And as long 0:12:09.840 --> 0:12:13.200 as we continue to develop products that are relevant to 0:12:13.280 --> 0:12:15.679 those new threats, will be in a great place. 0:12:16.800 --> 0:12:20.640 In terms of let's just circle back a little bit. 0:12:23.280 --> 0:12:27.360 Do we need an Is there an engineering quality that 0:12:27.840 --> 0:12:29.880 you need to run this company? Do you need to 0:12:30.600 --> 0:12:32.920 get your hands dirty and understand what is happening on 0:12:32.960 --> 0:12:35.920 the short floor. Is that ultimately, well, if. 0:12:35.760 --> 0:12:39.559 The answer, if you're directing that at me like every popular. 0:12:39.160 --> 0:12:41.600 Media, no, no, no, no, I'm not I'm not. I'm wondering 0:12:41.600 --> 0:12:43.959 what really what I'm asking you is the success The 0:12:44.040 --> 0:12:47.920 question is is this Is this an engineering problem? If 0:12:47.960 --> 0:12:49.679 there's no talent problem, is. 0:12:49.640 --> 0:12:53.440 It a it's no one problem. 0:12:53.640 --> 0:12:57.000 The engineering talents in our company are are enormous. 0:12:57.080 --> 0:12:58.680 Yep, I've I've been. 0:12:58.559 --> 0:13:00.600 Hanging around a lot of engineering companies and interest for 0:13:00.640 --> 0:13:04.040 a long time. Yeah, I've never seen one with more 0:13:04.040 --> 0:13:07.360 breadth and more skill in my life. It has to 0:13:07.360 --> 0:13:09.800 be organized, It has to be applied in a discipline 0:13:09.840 --> 0:13:12.520 way with respect to a successor. They're not going to 0:13:12.559 --> 0:13:15.800 engineer anything. If they engineer something, that's when we should 0:13:15.800 --> 0:13:16.600 all run for the hills. 0:13:16.920 --> 0:13:17.199 Okay. 0:13:18.080 --> 0:13:19.880 So they have to be keenly. 0:13:19.600 --> 0:13:22.920 Aware of where the engineering expertise lies and to make 0:13:22.960 --> 0:13:25.160 sure it's supported in every way it can be, and 0:13:25.160 --> 0:13:27.960 that it gets the last vote on everything, and it 0:13:27.960 --> 0:13:30.520 gets the last vote on everything. So that's what you do. 0:13:31.080 --> 0:13:35.960 Manufacturing processes. Do I have to assemble airplanes? Does my 0:13:36.080 --> 0:13:37.720 successor need to assemble airplanes? 0:13:37.800 --> 0:13:37.839 No. 0:13:38.320 --> 0:13:41.200 Does it need to know the factory stable. Does it 0:13:41.240 --> 0:13:44.040 have to have the metrics in place that provide for that. 0:13:44.640 --> 0:13:47.280 Does it have to have the residence, skills and proficiencies 0:13:47.280 --> 0:13:50.480 in place to make sure that's the case? Answers Yes, 0:13:51.040 --> 0:13:55.079 and there is all of that. It has to be organized. 0:13:55.120 --> 0:13:57.360 We got to wake up call to do it even better, 0:13:57.720 --> 0:13:59.640 and that's what we do. We just focus on it 0:13:59.640 --> 0:14:00.400 and just do it. 0:14:01.960 --> 0:14:04.160 Again. Coming back to the point you raised about competition, 0:14:04.720 --> 0:14:06.640 this is a point of disruption though in the industry. 0:14:06.679 --> 0:14:08.560 I'd come back to the sustainability question. This is the 0:14:08.559 --> 0:14:12.640 point of disruption in the industry. If Boeing's looking that way, 0:14:12.800 --> 0:14:14.960 is it going to be distracted from the disruption that 0:14:15.080 --> 0:14:19.240 is taking place in this industry? Potentially? Are you, by 0:14:19.360 --> 0:14:23.880 having to go through this process leaving yourself open to 0:14:24.280 --> 0:14:26.200 the distruction we've seen in the ev Sex even going 0:14:26.240 --> 0:14:27.600 to look at what's happening here in Europe with the 0:14:27.600 --> 0:14:31.120 car industry, there are others that are that are interested 0:14:31.160 --> 0:14:32.880 in what you do and want to do it better. 0:14:34.000 --> 0:14:36.200 How do you make sure that that doesn't happen. 0:14:36.440 --> 0:14:42.040 Well, what we did and of the things I'm very 0:14:42.080 --> 0:14:44.520 confident is what we did is we sustained all of 0:14:44.560 --> 0:14:49.880 the major technology research programs and development programs related to 0:14:50.000 --> 0:14:53.920 the technologies we think play on the next platform. All 0:14:53.960 --> 0:14:57.840 of these have to be developed, tested, matured before you 0:14:57.880 --> 0:15:01.320 can actually design an airplane that increates it. Yep, And 0:15:01.360 --> 0:15:03.520 that's a lesson all of us have learned, who have 0:15:03.600 --> 0:15:04.960 ever developed an airplane. 0:15:05.240 --> 0:15:07.480 Make sure you take the time to mature those things. 0:15:07.880 --> 0:15:11.600 But I feel very good about the portfolio of capabilities 0:15:11.640 --> 0:15:15.280 that we will bring to that airplane, very good about it. 0:15:15.440 --> 0:15:17.640 And again, you take the time to make sure they're 0:15:17.640 --> 0:15:20.560 mature and ready, and there will be some significant changes 0:15:20.560 --> 0:15:23.160 as we go forward. Yes, efficiency is the one that 0:15:23.200 --> 0:15:25.560 we all talk about, but I think autonomy is another one. 0:15:25.400 --> 0:15:27.000 That everybody should talk more about. 0:15:27.280 --> 0:15:30.240 Doesn't mean pilotless, it just means autonomy capable. 0:15:31.720 --> 0:15:33.920 Okay, let's just think about that for a moment. We're 0:15:33.960 --> 0:15:37.440 struggling to certify derivatives of current aircraft. What do you 0:15:37.440 --> 0:15:40.280 think the regulators are going to think about? How much 0:15:40.320 --> 0:15:42.720 of a lag is there going to be in new 0:15:42.720 --> 0:15:44.800 airplanes coming to market? When do you think you're going 0:15:44.880 --> 0:15:47.320 to be This is the question that you're not going 0:15:47.400 --> 0:15:50.560 to answer. Yeah, exactly, But let's assume that it's within 0:15:50.680 --> 0:15:53.800 the next ten years. How long let's say let's say 0:15:53.840 --> 0:15:56.160 it's ten years from now, how long would it take 0:15:56.200 --> 0:16:00.400 to certify that aeroplane and is that how much? How 0:16:00.440 --> 0:16:03.800 much of a slowdown in the process is not going 0:16:03.880 --> 0:16:04.360 to mean. 0:16:04.480 --> 0:16:07.200 Yeah, I can't predict that. I will say this. 0:16:07.400 --> 0:16:12.520 We are we are an applicant for an autonomous civil 0:16:12.640 --> 0:16:16.360 vehicle with our small air tax he called whisk Yep. 0:16:16.480 --> 0:16:17.960 We're an applicant, and that. 0:16:17.840 --> 0:16:21.360 Means that the regulator has accepted the application, and that 0:16:21.440 --> 0:16:26.840 means they're organizing themselves to certify autonomy and to develop 0:16:26.880 --> 0:16:30.040 an approach they can codify. And it's one of the 0:16:30.080 --> 0:16:33.800 big reasons that we're invested in risk. It's one of 0:16:33.800 --> 0:16:35.960 the big reasons. And I have a lot of confidence 0:16:36.000 --> 0:16:40.120 that that that airplane will not only hit the market, 0:16:40.480 --> 0:16:44.760 but it will be deemed safe and it will demonstrate. 0:16:44.120 --> 0:16:48.920 That you talked before about how importance Boeing is to 0:16:49.000 --> 0:16:51.080 America and to the world. But let's let me ask 0:16:51.120 --> 0:16:54.720 you a question. The we're gonna we're gonna have an 0:16:54.680 --> 0:16:57.400 election in November. What do you want to see from 0:16:57.440 --> 0:17:00.920 the next administration? What is Boeing want to from the 0:17:00.920 --> 0:17:01.880 next administration. 0:17:02.320 --> 0:17:06.359 Yeah, well we're everybody knows I think, Uh, we're a 0:17:06.400 --> 0:17:07.760 company that relies on trade. 0:17:08.119 --> 0:17:10.840 Free trade to us will always be sort. 0:17:10.680 --> 0:17:13.240 Of first on the list of desires. I'll be the 0:17:13.280 --> 0:17:16.359 first to acknowledge that that seems to be going in 0:17:16.359 --> 0:17:19.160 the wrong direction and has been for quite something. 0:17:19.160 --> 0:17:19.560 To worry. 0:17:21.880 --> 0:17:22.560 Yeah, I'm worried. 0:17:23.040 --> 0:17:30.960 I'm worried that the ramifications of isolation are gonna are 0:17:31.000 --> 0:17:33.880 gonna I don't want to overstate the word, but they're 0:17:33.880 --> 0:17:35.080 gonna bring down economies. 0:17:35.400 --> 0:17:38.280 They just are. They just are. Now. 0:17:38.359 --> 0:17:42.600 I happen to be in an industry because choices are 0:17:42.600 --> 0:17:47.320 limited and because needs are great. It probably won't hit 0:17:47.359 --> 0:17:51.080 me first, But I worry about isolation with respect to 0:17:51.119 --> 0:17:54.520 the economic ramifications for lots of countries and lots of people, 0:17:55.080 --> 0:18:01.640 and isolation then breeds disenchantment, and disenchantment ultimately it's political turnover. 0:18:01.840 --> 0:18:04.719 So I that's the world I worry about with respect 0:18:04.720 --> 0:18:06.760 to isolation, and I don't like any of the signs 0:18:06.800 --> 0:18:07.680 I see. 0:18:07.880 --> 0:18:11.600 Okay, how does that? How does that change the way 0:18:11.600 --> 0:18:13.280 you think about the way the buying is going to operate. 0:18:14.240 --> 0:18:17.320 We're going to run hard, continue to build the world's 0:18:17.320 --> 0:18:21.200 best airplane. And then we're going to compete, and I'm 0:18:21.200 --> 0:18:23.200 gonna lobby every day all day for free trade. 0:18:23.359 --> 0:18:25.840 Does it stop this? Does it stop the sustainability story? 0:18:25.920 --> 0:18:26.480 Just cooperate? 0:18:26.520 --> 0:18:26.560 No? 0:18:26.760 --> 0:18:32.040 No, I've heard building bridges number of times today. What 0:18:32.119 --> 0:18:34.879 you're describe me, it's not building bridges, it's it's blowing 0:18:34.880 --> 0:18:35.240 them up. 0:18:35.680 --> 0:18:38.840 It's what I'm observing, and I suspect you are too. 0:18:39.680 --> 0:18:42.200 So we just have to be honest about what we observe. 0:18:42.760 --> 0:18:45.480 We have to express our concern for what may happen 0:18:45.520 --> 0:18:48.879 as a result, and those in industry I think have 0:18:48.960 --> 0:18:52.000 a pretty good picture on that. And then we have 0:18:52.119 --> 0:18:56.440 to lobby and convince the public and politicians that free 0:18:56.440 --> 0:18:57.919 trades in everybody's best interest. 0:18:58.720 --> 0:19:00.720 Is there a dang to the sustainable the story ends 0:19:00.800 --> 0:19:06.760 up becoming we went through the the launch a saga. 0:19:07.080 --> 0:19:10.160 We'll remember that. Is there a danger that we end 0:19:10.240 --> 0:19:15.280 up balkanizing this process of sustainability, balkanizing the process of 0:19:15.320 --> 0:19:17.919 the next next generation of aeroplanes, that there is no 0:19:18.040 --> 0:19:23.960 cooperation and it becomes a an effort that is that 0:19:24.080 --> 0:19:27.680 is driven by industrial policy with very domestic purposes of 0:19:27.880 --> 0:19:29.760 mind and in mind. 0:19:29.880 --> 0:19:32.359 Well that's a description of a of an end game. 0:19:32.440 --> 0:19:35.320 I have no interest in UH. 0:19:36.240 --> 0:19:38.360 I don't think it gets there. I really don't think 0:19:38.400 --> 0:19:38.960 it gets there. 0:19:40.440 --> 0:19:40.920 UH. 0:19:41.520 --> 0:19:43.760 And it's with respect to this industry. 0:19:44.080 --> 0:19:48.320 This industry, we have allied nations supporting both UH. 0:19:48.800 --> 0:19:53.760 Both supply sides. In my view, that will play well. 0:19:53.880 --> 0:19:57.159 Ultimately. We know we're going to have a competitor from China. 0:19:57.680 --> 0:20:00.479 We have a keen awareness for all of that. We 0:20:00.520 --> 0:20:03.440 should not be afraid of it. We should continue to 0:20:03.480 --> 0:20:07.600 develop technologies. I agree with Gillolme's comments completely. Just keep 0:20:07.640 --> 0:20:11.240 developing technologies the world needs and wants, compete with the 0:20:11.240 --> 0:20:14.200 best of the best. In my case, yep, that's killome. 0:20:15.080 --> 0:20:18.200 He would probably say the same. We just keep trying 0:20:18.240 --> 0:20:20.520 to outdo each other, and that's what we keep running. 0:20:20.720 --> 0:20:23.200 I think a China competitor's got a long way to 0:20:23.240 --> 0:20:26.199 go on that front, measured in decades and decades, not 0:20:26.280 --> 0:20:26.720 in years. 0:20:26.840 --> 0:20:31.520 How should government support bog and Airbus? How should government 0:20:31.560 --> 0:20:35.240 support the process of building the next generation of aeroplanes? 0:20:36.320 --> 0:20:40.560 How should government supports the sustainability story that we're all 0:20:40.760 --> 0:20:42.640 hopefully on the journey we're all on. 0:20:43.359 --> 0:20:47.920 I think they have to mandate sustainability. I think we're 0:20:47.920 --> 0:20:50.560 all committed to it, so I'm not suggesting we need 0:20:50.600 --> 0:20:52.760 a slap in the face, but there are certain things 0:20:52.760 --> 0:20:56.119 that will have to happen policy wise that create the 0:20:56.240 --> 0:20:59.440 absolute need and more importantly, confidence that we are down 0:20:59.440 --> 0:21:03.360 that path. And that's all things sustainable fuel, all things 0:21:03.359 --> 0:21:07.680 sustainable aviation fuel. That is, that's the answer that gets 0:21:07.760 --> 0:21:11.760 us even close to our objectives by twenty fifty. So 0:21:11.920 --> 0:21:17.119 I'm in great favor of those kinds of policies, subject 0:21:17.320 --> 0:21:22.200 to the political sides understanding of what capabilities and timeframes 0:21:22.240 --> 0:21:25.479 are required to get there, and I believe we have 0:21:25.560 --> 0:21:29.080 tools across our industry. We have one we call Cascade 0:21:29.520 --> 0:21:31.600 where you can do the math really easily, like in 0:21:31.640 --> 0:21:34.960 an hour, to figure out what policy objective will do 0:21:35.560 --> 0:21:39.000