On Tuesday, Boeing (NYSE: BA) CEO Kelly Ortberg said he is “not too worried” about the Trump administration’s threats to impose tariffs on trade partners, including countries that are important parts of Boeing’s far-flung supply chain.
“This administration’s very focused on jobs, on U.S. jobs, and, as you know, Boeing production is all U.S.-based, and we export these aircraft throughout the world,” he said in an interview.
Boeing is working with the administration to speed up delivery of two replacement presidential aircraft, better known as Air Force One, Ortberg said.
The U.S. planemaker has already lost more than $2 billion on the fixed-price program and the planes are not expected to be delivered until later this decade, several years behind schedule.
“Clearly, the president would like the airplane earlier, and so we’re working to see what could be done to accomplish that,” Ortberg told Reuters.
The company reported an $11.8-billion annual loss after grappling with problems at its commercial and defense units and a crippling strike.
Ortberg said he met with Trump emissary Elon Musk in December to discuss speeding up Air Force One delivery. Working with Musk on revising the program is a “good sample” of Musk’s efficiency initiative within the Trump administration, he said.
Ortberg said he is focused on stabilizing the company around its strengths. He said he is looking at non-core segments to sell, likely from Boeing’s defense, space, and services divisions. Boeing’s commercial airplanes business is already streamlined, he said.
For now, that business is focused on stabilizing and ramping up production of its existing airplanes. Boeing said it expects to reach a production rate of 38 airplanes a month on the 737 MAX program, and by the second half of the year, get approval from the Federal Aviation Administration to increase production above that rate.
After that, Ortberg said, Boeing (NYSE: BA) will increase 737 production by five aircraft every six months.
Ortberg also said he expects to raise 787 production from five per month now to seven a month in the first quarter of 2025.
Once the company is stable and generating cash, it can think about a new airplane program, he said. “That’s more long-term positioning for us.”
When exactly will depend on “when we’re ready, when we’re stable, but also a little bit on the technologies and when the technologies are ready,” he said.
Ortberg said he is not considering moving Boeing headquarters back to Seattle, home of its commercial airplane business. Company leadership was criticized for moving headquarters in 2001 to Chicago. It later moved to Arlington, Virginia.
When he joined Boeing as CEO in August, Ortberg moved to Seattle and said most days he works from that city.
But he said he was not focused on the headquarters location.
“I think the important thing is where the management is, and so I’m in Seattle.”
