Boeing CEO David Calhoun was on CNBC's "Squawk Box" today from the Farnborough International Airshow, which is July 18 to July 22. The air show is where the aerospace and defense industries present new civilian and military aircraft to customers.
What Happened: Calhoun was on to discuss a number of topics, including the order from Delta Air Lines, Inc. DAL of 100 of Boeing Co.'s BA Boeing 737 Max 10 jetliners estimated at $13.5 billion, with an option to purchase 30 more jets, totaling $17.6 billion in purchases.
Calhoun also talked about the future of the 737 Max 10 as pertaining to a waiver needed from the U.S. Congress about proposed changes to the cockpit, which according to a Seattle Times article are needed because "The system on the MAX for alerting pilots about malfunctions during flight is outdated."
The Boeing CEO told CNBC, “We have to make our case [to U.S. Congress], it has to be persuasive, and we believe it is," also noting that there should not be an issue with the FAA, as Boeing has been through the certification process many times.
There is a large backlog growing for the 737 Max 10 that meets all mission objectives for its customers, Calhoun added.
Supply Chain: When asked about the fragile supply chain, Calhoun mentioned that on average Boeing is producing 31 planes per month, although noting, “Averages don’t work well for customers, predictability does."
When asked about specialized components constraints, the Boeing CEO recognized that longer-term supply constraints will stem from the engine world and could last for the next 18 months.
What To Expect: Raytheon Technologies Corp RTX CEO Greg Hayes mentioned in a CNBC interview on Monday morning that there might not be large orders like in the past.
Hayes did note that Airbus SE EADSY and Boeing are sold-out of narrow-body jetliners for the next five to seven years, as supply chain and employee issues could last through 2023 and 2024.
BA Price Action: Boeing is currently up 0.99% or $149.18 per share as of Monday at publication.
Photo: Images via Boeing
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