737 ‘off and rolling’ toward higher production rate, CEO says

Guided by Boeing’s Safety & Quality Plan, 737 production is on track to stabilize at Rate 47 in the months ahead said Boeing President and CEO Kelly Ortberg following a successful capstone review with the Federal Aviation Administration (FAA).

• “All of our key performance indicators have been very positive," Ortberg said Wednesday during the Bernstein Strategic Decisions Conference. "We're off and rolling now for the 47 a month rate, and we should be there in the next couple of months.”

Ortberg also outlined the company’s progress across the business including commercial airplane development programs, the opening of the new 737 North Line this summer and improving performance in Defense, Space & Security.

Go deeper: Listen to Ortberg’s discussion at the Bernstein Strategic Decisions Conference.

China market: Ortberg described the recent China trip as “super successful,” achieving the key goal of reopening the market for Boeing orders.

• “There's a great market opportunity for us,” Ortberg said.

Development Program Certification: Ortberg said 737-7 and -10 programs are in the final stages of achieving certification and expects that to happen this year. He noted the 737-10 is roughly 80% through its certification flight testing. On 777X, Ortberg expects the certification flight test program to be completed by the end of the year.

Defense, Space & Security: Ortberg highlighted improved performance on fixed priced development programs including KC-46A and T-7A Red Hawk. With the potential for higher defense budgets, he noted additional opportunities for key programs including F-15EX, E-7 Wedgetail, T-7 and MQ-25A.

• “We are able to still win and be disciplined in the market,” Ortberg said. “The outlook for growth in our military business is stronger this year than what I would have said it was last year.”

Culture and restoring trust: Culture change is progressing within Boeing, he said, with employees embracing the company’s Values and Behaviors. Ortberg emphasized that teammates are building on that momentum and focused on delivering for customers.

“The Boeing Company has a huge backlog,” he said. “We don't have to think about, ‘What airplanes do we want to build tomorrow?’ We know what airplanes we want to build. This is an execution story, so just focus on execution.”