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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. We do want to

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Speaker 1: stay in the transportation space and take a look at

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Speaker 1: the European planemaker air Bus, the world's largest plane maker,

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Speaker 1: the reported second quarter earning earlier today, and the big

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Speaker 1: concern was the big cash burn I had a chance

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Speaker 1: to catch up with the CEO of the air Bus

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Speaker 1: earlier today, Keonfoi. Here's what he had to say.

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Speaker 2: What we see in the first half of the euro

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Speaker 2: is a number of delivery that is at three hundred

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Speaker 2: and six. But we have also to have in mind

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Speaker 2: that we have sixty aircraft sitting on the ground fully

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Speaker 2: finished but with engines missing.

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Speaker 3: We call them gliders.

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Speaker 2: So if you look at what we've been able to produce,

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Speaker 2: including the gliders, actually we are mostly on track with.

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Speaker 3: What we expected to do in the first half.

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Speaker 2: So we count on engine makers mainly CFM and to

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Speaker 2: a smaller extent PRAT to recover on their engine deliveries

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Speaker 2: to Airbus, so we can be back on track with

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Speaker 2: a number of deliveries. So actually the negative free can

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Speaker 2: show that we have recorded for the first half reflects

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Speaker 2: mainly those missing deliveries and engine missing leading to aircraft

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Speaker 2: on the ground, although we have confirmed our guidance because

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Speaker 2: we believe we will get those engines and we'll be

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Speaker 2: back to where we need to be.

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Speaker 1: Are the delays in getting those engines? Is that related

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Speaker 1: to labor issues or is that more for parts and

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Speaker 1: just some hold ups in the supply chain.

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Speaker 3: Well, that's more the latter.

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Speaker 2: Actually, these are more short term issues that we are

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Speaker 2: generated in the first half of the year. When we

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Speaker 2: look at the CFM situation, ge faced industrial difficulties in

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Speaker 2: the beginning of the year. They delivered their course the

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Speaker 2: hot section of the engines late to the other partner,

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Speaker 2: which is and then Suffa faced a strike seven week

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Speaker 2: strike that impacted very significantly the ability to deliver home time.

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Speaker 2: They are recovering now, so it's really a timing issue

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Speaker 2: facing industrial challenges and we believe they are in the

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Speaker 2: situation now to deliver us back to normality till the

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Speaker 2: end of this year.

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Speaker 3: So that's the outproof for the next part of the year.

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Speaker 1: With regards to the backlog of orders, I am curious

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Speaker 1: as to what adjustments, if any, you have had to

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Speaker 1: make in light of some of the lord demand coming

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Speaker 1: out of the US, the restructuring of the order book

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Speaker 1: over with as well as a few other customers that

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Speaker 1: at least for right now, might be on the sidelines.

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Speaker 2: Actually, what we face at Albus is a very high

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Speaker 2: level of demand.

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Speaker 3: Overall.

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Speaker 2: We have by far more demand than the ability to supply.

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Speaker 2: We have a very strong backlock, the biggest backlog in

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Speaker 2: the industry, and this backlog keeps going up, keeps growing,

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Speaker 2: So we are not looking at it as a risk

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Speaker 2: for our business moving forward. The other global demand keeps

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Speaker 2: growing and we are doing our very best to ramp

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Speaker 2: up to serve that demand.

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Speaker 1: How manear is that? And more importantly, Gil, there's a

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Speaker 1: big question here about whether some of your customers are

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Speaker 1: actually asking for an acceleration and delivery of their order book.

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Speaker 2: Well, actually most of them, if not all of them,

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Speaker 2: are asking for an acceleration in the delivery. As I

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Speaker 2: said earlier, we are held back by the ability of engines.

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Speaker 2: We are ramping up on the eight three twenty family,

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Speaker 2: which is the bulk of what we do, up to

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Speaker 2: a production rate, a monthly production rate of seventy five

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Speaker 2: aircraft a month by twenty twenty seven, that will be

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Speaker 2: the highest ever achieved for a commercial aircraft. So that's

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Speaker 2: the challenge we have in front of us. It's a

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Speaker 2: good challenge because it reflects the strong demand we have

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Speaker 2: for our products.

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Speaker 1: You gave guidance and for investors here that explicitly did

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Speaker 1: not take into account the framework of a deal between

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Speaker 1: the United States and the European Union. When do you

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Speaker 1: think you'll have a little bit more confident of factoring

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Speaker 1: in that trade deal into your guidance.

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Speaker 3: Well, that's an important question to us.

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Speaker 2: We had the news over the weekend of the agreement

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Speaker 2: and the fact that civil aviation will be back to

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Speaker 2: the so called zero four zero meaning nor taris. That's

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Speaker 2: something we have enjoyed since nineteen seventy nine and drives

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Speaker 2: the success of this industry. We need something papered out

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Speaker 2: and implemented. We need an agreement in forced as soon

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Speaker 2: as possible to be able to be back to normal operations.

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Speaker 3: That's something important to us. But we welcome the agreement.

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Speaker 2: We hope it's going to be inforced as soon as possible,

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Speaker 2: and iddly more a matter of weeks than a matter

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Speaker 2: of months.

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Speaker 1: Kay on Bori, they're the CEO of the world's largest

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Speaker 1: plane maker, air Bus. They reported earning a little bit

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Speaker 1: earlier in the day. The shares over there in France

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Speaker 1: I fell slightly in the cash session, and their adr

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Speaker 1: here in the US a little bit more than that