and now we have dave calhoun currency. it was also a ge guy. so this influence has been there for years. there's this description in the book. i'll just read it ge was an american institution. it had pioneered inventions that dramatically improved living standards the light bulb the x-ray machine the diesel electric locomotive. the refrigerator the people who worked in its factories and labs and their in river towns and industrial birds around the country thought of themselves as family. welsh was telling investors, he wouldn't flinch from the hard decisions to jettison them. whatever the human or political cost. and actually after he took over within the next five years, he laid off a quarter of the ge staff and got the nickname neutron jack. this was the era of ceos of corporate america being lionized on the cover of fortune magazine. and jack welch was the absolute top of the pile. so can you talk for a little bit about how ge had such influence over corporate america generally and boeing specifically. yeah, i mean at the time. he was consid

and now we have dave calhoun. he was also a ge guy so this influence has beenen there for years.there's a description the book ge was an american institution that pioneered inventions that dramatically improved the american standard. the x-ray machine the diesel electric locomotive, the refrigerator. the people who worked in the factories and industrial burg from a country -- family. welch was telling investors he wouldn't flinch from the hard decisions to jettison them whatever the human or political costs. actually after he took over within the next five years he laid off a quarter of the ge staff and got the neck name neutronn jack. this was the area -- ceos being lionized on the cover of "fortune" magazine and jack welch was the top of the time. can you talk a little bit about how ge had such influence over corporate america generally and boeing specifically? c at the time he was considered, he was the model of what a ceold should look like and what they should prior ties and phil condit and stonesifer worked for him and was the protÉgÉ of jack welsh so it meant things like f

i don't know if that's something dave calhoun is attuned to and his history has a history of privatequity and parachuting in different divisions at ge. >> it's a difficult position for anybody that might be leading boeing but they are overwhelmed with debt and should probably launch a new airplane, but it's about time to do so and they don't have the money. i will ask two questions into phone andud go to questions from the audience. is it fixed? would you put your kids on board? >> the particular software there were other things they wanted shielding around them. they wanted a system with electronic lists. those hadn't been put oni the plane. the statistic i saw last year was one in every 3.7 million flights and the max had 200,000 or more than 200,000 at this point. i'm going to wait for more evidence. >> you're not going to fly on it? >> i don't have to fly anywhere now. >> you talked about ge and you probably heard the news recently that the whole edifice is breaking up, so they are along the same lines, toshiba in japan is doing the same thing. do you think it's possible or would

dave calhoun ceo of going. good news, bad news quarter. we'll talk about cash flow but we start with the charge. $2.8 billion defense related for fix priced programs pt expected losses the next several years. what's the problem here? >> an environment, i think, described to your viewers and that i experience in and our company experienced is a rough and tough supply chain world with a lot of pauses, a lot of inte interruptions and those things. in affect what we've done is run through the programs, which you have to do from a contract standpoint. we're not going to get better. we'll accept the world as it is and run out for the year to year and a half. the cash burn rate doesn't get worse it simply doesn't get better during this period and that's what that charge reflects. >> a number of people looked at your bids for military contracts, government contracts the last several years and said where are they coming up with this they are too aggress and won't make money. then you have air force one. let me be blunt. was air force was a mistake

we're going to be talking with dave calhoun coming up at 9:00 a.m lots to talk about with the boeingcted profit, it's completely driven by a massive charge of $2.8 billion again, to cover anticipated losses with five defense fixed price programs guys, we'll send it back to you. >> phil, that loss obviously a much bigger miss a huge miss just on the bottom line but the top line was a couple billion dollars short too, i think. >> correct and that's the impact of this too. there's an impact when you take a loss of this size that is also reflected on the revenue side. >> okay. that was my question right now the stock is down by 2.1% we look forward to that interview later this morning thank you, phil. >> you bet. >>> i want to bring in stephanie link, and stephanie, i think you're in the unfortunate position of owning shares of boeing does this surprise you does it change your opinion on things, or is this something that you can weather >> i think this is something that we can weather. i think the absolute highlight and free cash flow that's what this stock trades on for it to be double

lots to discuss with dave calhoun in a cnbc exclusive when we talk with him tomorrow morning on "squawk we'll talk about where he sees the commercial plane market and what he thinks might happen over the next couple months with the certification, not certification of the 737 max-10. that is the stretch version. a lot of eyes are focused on what happens over the next couple months with that aircraft >> stretching out the 737 even more >> yes that surprise you? >> going to turn into a 747 if they keep stretching it, phil. >> no. it's not a wide body nope, nope, nope, nope it's just a max stretch version. >> those are the key numbers tomorrow morning the outlook, is airbus are they winning a lot of orders seems like i see a lot of headlines but can't put it together >> airbus is winning generally speaking, these guys as a duopoly have split 50/50. airbus made real inroads when it comes to the wide body market in terms of nailing down big orders in the next several months boeing, there was a time, brian, when they were not doing well in terms of landing future orders what they did at farm b

if you are sitting down with dave calhoun, what would you say? build an enterprise to make sure it services what you committed to i know they're going to do it. they got to catch up we've all had to rebound out of the pandemic they'll do the same. >> andrew, go ahead. i want to ask you this, there's an interesting tweet this morning, sarah nelson who runs the flight i attendants writing gas prices are a dollar gallon higher than they should be because of big oil's greed we need a windfall profits tax and she seems to be -- i don't know if she's endorsing it or putting it out there i'm curious what you make of that and whether you think that the price of oil is keeping prices up in your world as well. >> hey, andrew, thanks sarah nelson is fantastic. does a wonderful job hey, i haven't talked to her about, you know, the oil profits. but i'll tell you this, at american, we have to be ready no matter what the environment is oil prices high or low, we've got to be able to provide a product that people are willing to pay for and ultimately we can make