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Boeing not worried about Trump tariff threats, CEO says
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Boeing not worried about Trump tariff threats, CEO says
Jan 28, 2025 7:07 AM

Jan 28 - Boeing ( BA ) CEO Kelly Ortberg said on Tuesday 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 ( BA ) far-flung supply chain.

"This administration's very focused on jobs, on U.S. jobs,

and, as you know, Boeing ( BA ) production is all U.S.-based., and we

export these aircraft throughout the world," he said in an

interview.

Boeing ( BA ) 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.

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 ( BA ) defense, space and services

divisions. Boeing's ( BA ) commercial airplanes business is already

streamlined, he said.

For now, that business is focused on stabilizing and ramping

up production of its existing airplanes. He told CNBC on Tuesday

that he expects Boeing ( BA ) 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, he said, Boeing ( 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.

(Additional reporting by David Shepardson; Editing by Rod

Nickel)

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