Boeing CEO Kelly Ortberg mentioned on Thursday that Elon Musk, the head of SpaceX, is really lending a hand in dealing with the delays surrounding the delivery of Boeing's Air Force One jet.
Speaking at the Barclays Industrial Select Conference, Ortberg shared that the company is making strides with Musk's assistance, which is helping to speed up delivery times and reduce the chances of further cost overruns.
Boeing's defense sector reported pre-tax charges of $1.7 billion in the last quarter due to ongoing losses from fixed-price contracts they aggressively pursued in the past. Their stock dipped by 1.8% in morning trading.
Ortberg also plans to bring U.S. Transportation Secretary Sean Duffy and FAA Acting Administrator Chris Rocheleau to Seattle, where the popular 737 MAX is manufactured. A source indicated that this meeting is set for March.
Musk's contributions are significantly expediting our progress in fulfilling the aircraft delivery requirements for the President. His exceptional aptitude allows for rapid identification and prioritization of technical needs, streamlining the process considerably.
Elon Musk is actually helping us a lot in working through the requirements ...so that we can move faster and get the president those airplanes delivered," Ortberg said.
And you know he's a brilliant guy so he's able to pretty quickly ascertain the difference between technical requirements and things that we can move out of the way and he's helping us in a big way.
Boeing's defense division, responsible for Air Force One, has faced several financial hits due to overruns on fixed-price contracts.
Earlier this week, a senior official hinted that the Air Force One program might be pushed back to 2029 or even later. Trump has expressed his dissatisfaction with Boeing over these delays, suggesting that his administration might need to consider alternative options.
Ortberg stated that the supply chain for the 737 MAX is currently robust, as the U.S. aircraft manufacturer plans to increase production of this model to 38 units per month by mid-2025. Nevertheless, Boeing's supply chain team is evaluating the effects of a recent fire at a fastener manufacturing facility in Pennsylvania.