Boeing CEO Calhoun On Airline Deferrals And A Difficult Time

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Boeing CEO Calhoun On Airline Deferrals And A Difficult Time
Image source: CNBC

CNBC Exclusive: CNBC Excerpts: CNBC’s Phil Lebeau speaks with Boeing CEO David Calhoun on “Squawk on the Street” today

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Q2 2020 hedge fund letters, conferences and more

 

This Tiger grand-cub was flat during Q2 but is ready for the return of volatility

Tiger Legatus Master Fund was up 0.1% net for the second quarter, compared to the MSCI World Index's 7.9% return and the S&P 500's 8.5% gain. For the first half of the year, Tiger Legatus is up 9%, while the MSCI World Index has gained 13.3%, and the S&P has returned 15.3%. Q2 2021 hedge Read More


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All references must be sourced to CNBC.

Calhoun On A Difficult Time

From the near-term perspective, things have gotten more difficult. Flight schedules will probably not come back quite as quickly, I think, as our U.S. airline customers believed they would, they have already made and announced most of those adjustments. With respect to the long term we still feel like three years is the right timeframe.

Calhoun On Production Rates

They are not going to come down in quite the dramatic fashion that they did the first time, but we are going to delay sort of the re-ramp of our business. And as a result, we will have actions that we have to take over the course of this year into the middle of next year when we bring those rates down to more modest levels.

Calhoun On Airline Deferrals

There is a customer calling us every day with a desire to want to defer and to deal with the difficult environments that they are dealing with.

Calhoun On Being Optimistic

Just that early recovery, post the first spike, and the fact that bookings came back – and they came back fairly robustly – for me says the underlying demand equation still exists and that eventually we will solve this.

Calhoun On When Orders Will Return

It is that moment in time when the really healthy airlines – and there are going to be a bunch that emerge in better shape and better health than others – the minute they think they can gain an advantage by building out their fleet, and refreshing their fleet, and that the virus – the worst of the virus – is behind them, then that is when that will happen.

Calhoun On Second Half Of Next Year

It will happen in different jurisdictions at different times. You know China, Europe seem to have a little more control over their environments than the U.S. does at the moment, but it will happen and I believe somewhere in that depending on a vaccine, the success and distribution of a vaccine, somewhere in the second half of next year I am hopeful that this worm turns.

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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