Bloomberg Audio Studios, podcasts, radio news. It's been a tough stretch for Boeing, and this week's earnings made that clear.

Bloomberg Audio Studios, podcasts, radio news. It's been a tough stretch for Boeing, and this week's earnings made that clear.

The last year especially, has been like something out of the book of job. From a corporate perspective, just really felt like everything that could go wrong did go wrong.

The last year especially, has been like something out of the book of job. From a corporate perspective, just really felt like everything that could go wrong did go wrong.

Julie Johnson is a senior aerospace reporter for Bloomberg.

Julie Johnson is a senior aerospace reporter for Bloomberg.

It started with a panel blowing out of an Alaska Airline seven thirty seven, just moments after it had taken off. Photo show a gaping hole where an emergency door could be. But I think it really highlighted the quality breakdowns at Boeing because the plane had just come out of Boeing's factory like two months earlier, so it's brand new.

It started with a panel blowing out of an Alaska Airline seven thirty seven, just moments after it had taken off. Photo show a gaping hole where an emergency door could be. But I think it really highlighted the quality breakdowns at Boeing because the plane had just come out of Boeing's factory like two months earlier, so it's brand new.

Federal air safety officials say bolts on a Boying jetliner were missing.

Federal air safety officials say bolts on a Boying jetliner were missing.

It sort of precipitated a series of investigations. Boeing's managed had a big shake up.

It sort of precipitated a series of investigations. Boeing's managed had a big shake up.

Boeing said it would reduce its workforce by ten percent as it tries to recover from financial and regulatory troubles, and Boeing brought in a new CEO, Kelly Ortberg, with a mandate to turn things around. Ortberg now finds himself at the helm of a storied American manufacturer, entering twenty twenty five with a chessboard of challenges, a new earnings report on Tuesday that paints a grim picture of its finances, an uphill battle to regain public trust, and a tightrope act in Washington that will force it to work with one of its biggest rivals, Elon Musk, and President Trump himself. I'm David Gera, and this is the big take from Bloomberg News today. On the show Boeing needs to turn things around? Can it pull it off? And how might President Trump's return make things even more complicated.

Boeing said it would reduce its workforce by ten percent as it tries to recover from financial and regulatory troubles, and Boeing brought in a new CEO, Kelly Ortberg, with a mandate to turn things around. Ortberg now finds himself at the helm of a storied American manufacturer, entering twenty twenty five with a chessboard of challenges, a new earnings report on Tuesday that paints a grim picture of its finances, an uphill battle to regain public trust, and a tightrope act in Washington that will force it to work with one of its biggest rivals, Elon Musk, and President Trump himself. I'm David Gera, and this is the big take from Bloomberg News today. On the show Boeing needs to turn things around? Can it pull it off? And how might President Trump's return make things even more complicated.

Something I think people don't appreciate about Trump is that he's a plane guy.

Something I think people don't appreciate about Trump is that he's a plane guy.

Bloomberg's Julie Johnson says President Trump may like aviation, but he especially likes Boeing. He's mostly used Boeing planes in his private fleet for years, but when Trump became president in twenty seventeen, he found himself in the middle of the US government's relationship with the plane maker. For Boeing, the US government is not just a regulator, it's also one of the company's marquee customers. Boeing supplies its aircraft to the Postal Service, to NASA, and the military. It also manufactures the planes that presidents use to travel all over the world. Every president since FDR has flown on a Boeing plane, but the current models are a little outdated.

Bloomberg's Julie Johnson says President Trump may like aviation, but he especially likes Boeing. He's mostly used Boeing planes in his private fleet for years, but when Trump became president in twenty seventeen, he found himself in the middle of the US government's relationship with the plane maker. For Boeing, the US government is not just a regulator, it's also one of the company's marquee customers. Boeing supplies its aircraft to the Postal Service, to NASA, and the military. It also manufactures the planes that presidents use to travel all over the world. Every president since FDR has flown on a Boeing plane, but the current models are a little outdated.

The Air Force one planes have been flying around, I think since the George Bush administration, so they're due for replacement.

The Air Force one planes have been flying around, I think since the George Bush administration, so they're due for replacement.

During his first term, President Trump helped negotiate a contract with Boeing to upgrade the Air Force one fleet with revamped seven forty seven jets. He's proud of the deal and even brought it up in an interview with Bloomberg's editor in chief John Micklethway last October.

During his first term, President Trump helped negotiate a contract with Boeing to upgrade the Air Force one fleet with revamped seven forty seven jets. He's proud of the deal and even brought it up in an interview with Bloomberg's editor in chief John Micklethway last October.

So I'm getting think of this the exact same plane for one point seven billion, less exact except to have a better pay job. Okay, much better pay job.

So I'm getting think of this the exact same plane for one point seven billion, less exact except to have a better pay job. Okay, much better pay job.

Trump cares about these Air Force aircraft honestly, like nobody else on the planet. He's highly invested in these planes. He kept models on his desk at mar Lago when he was out of office.

Trump cares about these Air Force aircraft honestly, like nobody else on the planet. He's highly invested in these planes. He kept models on his desk at mar Lago when he was out of office.

Boeen was supposed to get these upgraded Air Force one jets into the sky by twenty twenty four, but the project is years behind schedule and two point seven billion dollars over budget. It's a reflection of the many problems the company has faced in recent years. But Boeing's new CEO, Kelly Ortberg, knows that getting these planes in shape is a top priority because they matter to Trump.

Boeen was supposed to get these upgraded Air Force one jets into the sky by twenty twenty four, but the project is years behind schedule and two point seven billion dollars over budget. It's a reflection of the many problems the company has faced in recent years. But Boeing's new CEO, Kelly Ortberg, knows that getting these planes in shape is a top priority because they matter to Trump.

One of the first things that Ortberg did after Trump was elected was set up some phone conversations with the president, you know, where they talked through a variety of things, but he sort of delivered the bad news to the President about some of the problems Boeing had had, and the transition team response at the time was along the lines of what can we do to help with these delays.

One of the first things that Ortberg did after Trump was elected was set up some phone conversations with the president, you know, where they talked through a variety of things, but he sort of delivered the bad news to the President about some of the problems Boeing had had, and the transition team response at the time was along the lines of what can we do to help with these delays.

To help keep the Air Force one project under four billion dollars, the Trump administration agreed to drop some special features like the ability to refuel mid air. Trump also roped in his new Department of Government Efficiency, which is tasked with reducing government spending and maximizing productivity, and the man in charge of that department is Elon Musk, whose company SpaceX is one of Boeing's main competitors when it comes to securing NASA contracts. Now, Musk's scrutiny of Boeing and its work with the US government could test the company's path to recovery. One afternoon in December, Musk's own jet landed at a Boeing facility in San Antonio, Texas.

To help keep the Air Force one project under four billion dollars, the Trump administration agreed to drop some special features like the ability to refuel mid air. Trump also roped in his new Department of Government Efficiency, which is tasked with reducing government spending and maximizing productivity, and the man in charge of that department is Elon Musk, whose company SpaceX is one of Boeing's main competitors when it comes to securing NASA contracts. Now, Musk's scrutiny of Boeing and its work with the US government could test the company's path to recovery. One afternoon in December, Musk's own jet landed at a Boeing facility in San Antonio, Texas.

It's where Boeing is working on the new Air Force one aircraft.

It's where Boeing is working on the new Air Force one aircraft.

According to air traffic that Julie and her team monitored, Musk's jet landed just a few hours after another plane which was carrying Boeing CEO Kelly Ordberg.

According to air traffic that Julie and her team monitored, Musk's jet landed just a few hours after another plane which was carrying Boeing CEO Kelly Ordberg.

And the two aircraft were parked right next to each other, and that's how we confirmed that there had been this highly unusual meeting between one of Boeing's main rivals and a huge critic of the company and its new leadership.

And the two aircraft were parked right next to each other, and that's how we confirmed that there had been this highly unusual meeting between one of Boeing's main rivals and a huge critic of the company and its new leadership.

I just wonder sort of what you know of the substance of the conversation that took place that day, or I guess, more broadly, sort of what Elon Musk was doing there at that airfield in Texas.

I just wonder sort of what you know of the substance of the conversation that took place that day, or I guess, more broadly, sort of what Elon Musk was doing there at that airfield in Texas.

We know he was there on behalf of the president. We don't know what was discussed. The meeting we think took about two hours, again just based on the jet traffic in and out of the airport. But interestingly, a week later, when Musk was asked on Twitter about Boeing. He spoke very highly of the new CEO Ortberg, so it feels like he met the moment, But really we won't know that for a while.

We know he was there on behalf of the president. We don't know what was discussed. The meeting we think took about two hours, again just based on the jet traffic in and out of the airport. But interestingly, a week later, when Musk was asked on Twitter about Boeing. He spoke very highly of the new CEO Ortberg, so it feels like he met the moment, But really we won't know that for a while.

From there, both jets flew to Florida, specifically to Palm Beach. Ortberg has a house there, and Musk has spent a lot of time at the President's resort.

From there, both jets flew to Florida, specifically to Palm Beach. Ortberg has a house there, and Musk has spent a lot of time at the President's resort.

It's just fascinating to me that they both wound up in the vicinity of mar A Lago and Trump. And doesn't that sort of encapsulate this moment in time? Ortberg as the chief of the largest US exporter on the global stage, with a very volatile, unpredictable president and a new set of characters around Trump.

It's just fascinating to me that they both wound up in the vicinity of mar A Lago and Trump. And doesn't that sort of encapsulate this moment in time? Ortberg as the chief of the largest US exporter on the global stage, with a very volatile, unpredictable president and a new set of characters around Trump.

So how is Ortburg managing that unusual position and the hurdles Trump presidency could throw in his way? Boeing succeeding at pulling things together? That's coming up. President Trump's relationship with Boeing goes way back almost thirty years. Before he was negotiating deals with the Airliner on behalf of the US government, he was buying a fleet of Boeing jets himself. Donald Trump bought the Eastern Shuttle for a price tag of three hundred and sixty five million dollars.

So how is Ortburg managing that unusual position and the hurdles Trump presidency could throw in his way? Boeing succeeding at pulling things together? That's coming up. President Trump's relationship with Boeing goes way back almost thirty years. Before he was negotiating deals with the Airliner on behalf of the US government, he was buying a fleet of Boeing jets himself. Donald Trump bought the Eastern Shuttle for a price tag of three hundred and sixty five million dollars.

You had other people wanting this very much, as we all know, and it was just really a nice victory.

You had other people wanting this very much, as we all know, and it was just really a nice victory.

Within three years, he'd sold the Trump Shuttle airline, but he never stopped caring about planes, and his tone on Boeing has fluctuated over the years.

Within three years, he'd sold the Trump Shuttle airline, but he never stopped caring about planes, and his tone on Boeing has fluctuated over the years.

One of the first things he did when he was elected in twenty sixteen was this kind of fiery tweet about Air Force One being over budget. Boeing is building a brand new seven forty seven air Force One. He wrote, costs are out of control, more than more brilliant cancel order.

One of the first things he did when he was elected in twenty sixteen was this kind of fiery tweet about Air Force One being over budget. Boeing is building a brand new seven forty seven air Force One. He wrote, costs are out of control, more than more brilliant cancel order.

Soon after the tweet, he told reporters he might cancel Boeing's Air Force one contract.

Soon after the tweet, he told reporters he might cancel Boeing's Air Force one contract.

I think it's ridiculous. I think Boeing is doing a little bit.

I think it's ridiculous. I think Boeing is doing a little bit.

Of a number.

Of a number.

And Boeing used that to actually set up a series of meetings with the President and to establish this tight relationship with him, and he became something of a cheerleader for Boeing, though he also didn't hesitate to sling a few darts at the company as well, because that's Trump being Trump. But early on he visited Boeing's plan in South Carolina.

And Boeing used that to actually set up a series of meetings with the President and to establish this tight relationship with him, and he became something of a cheerleader for Boeing, though he also didn't hesitate to sling a few darts at the company as well, because that's Trump being Trump. But early on he visited Boeing's plan in South Carolina.

I want to thank the great people of South Carolina got.

I want to thank the great people of South Carolina got.

Boeing's aircraft were the backdrop to the speech that he gave, and he ended it.

Boeing's aircraft were the backdrop to the speech that he gave, and he ended it.

May God bless the United States of America, and God bless Boeing.

May God bless the United States of America, and God bless Boeing.

With God Bless Boeing, which again I mean just really unconventional and sort of a break with the usual presidential decorum. But I think it just reinflorced that Trump was invested in this company. They generate a big trade surplus for the US in aerospace. It's one of the industries where the US definitely exports more than it imports.

With God Bless Boeing, which again I mean just really unconventional and sort of a break with the usual presidential decorum. But I think it just reinflorced that Trump was invested in this company. They generate a big trade surplus for the US in aerospace. It's one of the industries where the US definitely exports more than it imports.

For all of Trump's criticism and praise of Boeing, there's a truth that, at least for now, he can't avoid. Boeing is the biggest US exporter, and in many ways it represents the kind of American manufacturing Trump pushes in speeches and proposed policies.

For all of Trump's criticism and praise of Boeing, there's a truth that, at least for now, he can't avoid. Boeing is the biggest US exporter, and in many ways it represents the kind of American manufacturing Trump pushes in speeches and proposed policies.

We want products made by our workers in our factories, stamped with those four magnificent words made in the USA.

We want products made by our workers in our factories, stamped with those four magnificent words made in the USA.

Boeing planes are built in the US, though some of the engineering is done overseas, and they have a global supply chain. But it's an American made product.

Boeing planes are built in the US, though some of the engineering is done overseas, and they have a global supply chain. But it's an American made product.

But that also makes the company vulnerable to Trump's protectionism.

But that also makes the company vulnerable to Trump's protectionism.

Anytime you talk about roiling global trade, definitely, I think heartspeat a little faster at Boeing.

Anytime you talk about roiling global trade, definitely, I think heartspeat a little faster at Boeing.

The trade war during Trump's first term cost the company its market lead in China, which hasn't placed a large aircraft order with Boeing since twenty seventeen, and the tariff's Trump is threatening this time around could take an even bigger toll on a company whose finances are already suffering.

The trade war during Trump's first term cost the company its market lead in China, which hasn't placed a large aircraft order with Boeing since twenty seventeen, and the tariff's Trump is threatening this time around could take an even bigger toll on a company whose finances are already suffering.

I think they are girding definitely for some more turbulence, and it goes beyond China. I mean, if Trump goes after other friendlier countries. One of the easy ways to retaliate is if you don't want to buy American you just don't buy American planes.

I think they are girding definitely for some more turbulence, and it goes beyond China. I mean, if Trump goes after other friendlier countries. One of the easy ways to retaliate is if you don't want to buy American you just don't buy American planes.

Boeing's main competitor, Airbus, is European, and in the wake of Boeing's repeated disasters, business has been good. Just last year, Airbus delivered more than twice as many commercial jets to customers as Boeing did. Meanwhile, Boeing reported its fourth quarter earnings on Tuesday, and it had the largest annual loss since twenty twenty. The cash train over fourteen billion dollars. Ortberg told shareholders he'll be overhauling the company's portfolio to get things back on track, and on CNBC yesterday he sounded resolved about his collaboration with Musk and Doge on the Air Force one project.

Boeing's main competitor, Airbus, is European, and in the wake of Boeing's repeated disasters, business has been good. Just last year, Airbus delivered more than twice as many commercial jets to customers as Boeing did. Meanwhile, Boeing reported its fourth quarter earnings on Tuesday, and it had the largest annual loss since twenty twenty. The cash train over fourteen billion dollars. Ortberg told shareholders he'll be overhauling the company's portfolio to get things back on track, and on CNBC yesterday he sounded resolved about his collaboration with Musk and Doge on the Air Force one project.

The President wants a airplay sooner, and so we're working with the a lot and the team to figure out what can we do to pull up the schedule.

The President wants a airplay sooner, and so we're working with the a lot and the team to figure out what can we do to pull up the schedule.

Of that aircraft. Julie says. The company also tried to buy itself some time last year by raising some twenty four billion dollars in capital, so they've.

Of that aircraft. Julie says. The company also tried to buy itself some time last year by raising some twenty four billion dollars in capital, so they've.

Got a little bit of runway here, but they've also been burning through cash at just an extraordinary pace over the last year, like to the tune of around four billion a quarter, and that's got to stop.

Got a little bit of runway here, but they've also been burning through cash at just an extraordinary pace over the last year, like to the tune of around four billion a quarter, and that's got to stop.

Boeing is also still being monitored by the Federal Aviation Administration. Trump hasn't yet appointed a new head of that agency since its previous leaders stepped down on inauguration Day, but Trump's Transportation Secretary pick Sean Duffy has called for tough love and oversight when it comes to Boeing in the meantime. In February Boeing is expected to give the US Air Force an update on the Air Force one project, and Ortberg does not want to disappoint the president.

Boeing is also still being monitored by the Federal Aviation Administration. Trump hasn't yet appointed a new head of that agency since its previous leaders stepped down on inauguration Day, but Trump's Transportation Secretary pick Sean Duffy has called for tough love and oversight when it comes to Boeing in the meantime. In February Boeing is expected to give the US Air Force an update on the Air Force one project, and Ortberg does not want to disappoint the president.

But some of the milestones on the plane, it looks like, have slid and so it raises the risk that the plane could show up really, really late during this administration or even after he leaves office. So this is kind of a tension point from Boeing early on, just how do you manage this? Are there resources they could throw at this and could Musk in his new capacity step in and maybe help.

But some of the milestones on the plane, it looks like, have slid and so it raises the risk that the plane could show up really, really late during this administration or even after he leaves office. So this is kind of a tension point from Boeing early on, just how do you manage this? Are there resources they could throw at this and could Musk in his new capacity step in and maybe help.

This is the Big Take from Bloomberg News. I'm David Gura. This episode was produced by Julia Press. It was edited by our senior producer Naomi Shaven, Aaron Edwards, and Benedict Cammell. It was mixed and sound designed by Alex Segura, factchecked by Jessica bec and Andreana Tapia. Our senior editor is Elizabeth Ponso. Our executive producer is Nicole Beemster Boor Sage Bauman is Bloomberg's head of Podcasts. If you liked this episode, make sure to subscribe and review The Big Take wherever you listen to podcasts. It helps people find the show, thanks for listening. We'll be back tomorrow.

This is the Big Take from Bloomberg News. I'm David Gura. This episode was produced by Julia Press. It was edited by our senior producer Naomi Shaven, Aaron Edwards, and Benedict Cammell. It was mixed and sound designed by Alex Segura, factchecked by Jessica bec and Andreana Tapia. Our senior editor is Elizabeth Ponso. Our executive producer is Nicole Beemster Boor Sage Bauman is Bloomberg's head of Podcasts. If you liked this episode, make sure to subscribe and review The Big Take wherever you listen to podcasts. It helps people find the show, thanks for listening. We'll be back tomorrow.