How Trump and Musk Are Testing Boeing’s Path to Recovery
Jan 29, 2025
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Julie Johnsson, Bloomberg's senior aerospace reporter, dives into Boeing's rocky journey to recovery amidst political pressures. She discusses the new CEO's efforts to regain public trust while contending with President Trump’s demands for new Air Force One jets. Johnsson highlights Boeing's ongoing quality control issues and financial struggles, revealing how Elon Musk's involvement complicates matters further. The conversation sheds light on the intricate relationship between Boeing and key political figures, making for a compelling examination of the aerospace industry.
Boeing is facing significant financial challenges and management restructuring amid scrutiny over quality control and trust issues.
The influence of President Trump and Elon Musk adds complexity to Boeing's recovery strategies in the competitive aerospace market.
Deep dives
Leonardo da Vinci's Flying Machine
In 15th century Florence, Leonardo da Vinci faced significant obstacles in his quest to invent a flying machine, primarily due to overwhelming administrative tasks. To tackle this issue, he utilized efficient buying tools from Amazon Business, which allowed him to streamline his operations. With the time saved from handling admin work, da Vinci not only conceptualized his flying machine but successfully built it. This innovative approach underscores the importance of leveraging resources to maximize productivity and creativity.
Boeing's Recent Struggles
Boeing has been grappling with significant challenges, as highlighted by a serious incident involving a new aircraft and subsequent investigations revealing quality control issues. Following these events, management underwent a major restructuring, and the company announced plans for a 10% workforce reduction amid mounting financial troubles. The latest earnings report painted a grim picture, confirming it suffered the largest annual loss since 2020, raising concerns about its ability to regain public trust. As Boeing navigates these difficulties, the leadership changes and operational reviews will play a crucial role in its recovery plan.
The Complicated Relationship with the Trump Administration
President Trump's longstanding relationship with Boeing has both bolstered and complicated the company's position in the market, particularly as he is a known supporter of American manufacturing. Trump’s administration had ongoing discussions regarding the Air Force One project, emphasizing the necessity of timely delivery despite significant delays and budget overruns. The involvement of influential figures like Elon Musk in discussions related to Boeing's projects further complicates the situation, as he represents competitive pressures and scrutiny. As Boeing works to align with government expectations and mitigate financial strain, the unpredictable political landscape poses additional challenges.
It’s been a tough stretch for Boeing. Its new CEO Kelly Ortberg is trying to rebuild public trust and turn the company’s finances around, all while navigating pressure from President Trump to deliver new Air Force One jets and working with the founder of one of Boeing’s chief rivals, Elon Musk.
On today’s Big Take podcast, Bloomberg senior aerospace reporter Julie Johnsson joins host David Gura to explain the turbulent road ahead for the US planemaker.