And so that one is a little more medium term-ish. Capacity is being built out. I think people will get ahead of it, but that will be a little longer than the heat exchanger. And anyway, so that will affect us a bit. And when you have a buyer-furnished problem like that, you don’t have a consequence attach to it, as you probably know.
Scott Deuschle: Got it. And then, Brian, can you get an advance on the large P-8 contract that you won this quarter?
Brian West: So, we’re going to not talk about that specifically in terms of that award. I did want to come back to two things that you asked about. I want to make sure there’s color out there. 777X as we described, no changes. But I would like to indicate that we’re starting to see the inventory implications of that ramp. And that’s something that’s big and important as we move through this year, and we’re excited to be able to put that in service. But that does create some working capital pressure that I don’t want to be — have lost on anyone. And as it pertains to the 87, very nice progress in terms of our inventory liquidation progressing well. Keep in mind, not all of that will get delivered. All that will get reworked and completed, but the deliveries are going to lag.
And as far as production is concerned, we will be a couple lower than that five per month for most of the year as the supply chain catches up. And as Dave mentioned, we do have a recovery plan, and we are optimistic. And one bright spot is that that second line has now been activated. So as soon as that supply chain is positioned we’ll be ready to go, but it will be lower as we move through this year.
Scott Deuschle: Thank you.
Operator: Thank you. And the next question is from David Strauss from Barclays. Please go ahead.
David Strauss: Thanks. Good morning. Just wanted to clarify on your comments around the balance sheet and liquidity. Is equity — considering equity issuance, is that still off the table as you think about the balance sheet and potentially funding Spirit?
Brian West: Well, as we stand for what I described in terms of what we’re looking at right now, working closely with the rating agencies, we believe we can do the move I described in the near-term with market access without that. As it pertains to Spirit, we talked about that this is a deal where discussions are ongoing. It’s complicated. There’s other parties involved. And what this means is that once it does get signed, we expect it to, that it’s going to take time to close. And in that time between signing and closing, we’re going to explore the optimal financing for that transaction in order to maintain the investment credit rating. And that’s important. How exactly that looks? Don’t know. We’ve got the time. And importantly, at the same time, we’re going to have a factory that we expect to get more and more stable. So we’re going to get to the optimal answer. We’re going to protect the investment-grade credit rating and how the pieces play out, stay tuned.
David Strauss: Okay. And a quick follow-up there as it relates to Spirit. How engaged is Airbus in this process at this point and thinking about potentially taking back their own work? And does the deal need to wait until you get full clarity on what might happen with that Airbus business? Or do you think you can move forward without full clarity there?
Dave Calhoun: No, we can move forward without full clarity. And as you probably know, we’re not going to get involved in that, whatever is going on there. We encourage Spirit to do whatever they need to do to try to remedy or improve their business relative to our potential acquisition. So I don’t have a lot of insight into that. But I encourage Spirit to try to resolve that kind of stuff as quickly as they can. But we are not being held hostage to that.
David Strauss: Thanks very much.
Operator: Thank you. Our next question is from Peter Arment from Baird. Please go ahead.
Peter Arment: Thanks. Good morning, Dave and Brian. Can you talk about your pending kind of leadership change? I mean, you’ve been on the Board for many years. You’ve been CEO for five years during what obviously been a very challenging environment with MAX, COVID, 787. But it kind of — as we think about it in reality, Boeing is in kind of a position to have a multiyear improvement story. So what do you think is the right leader that’s needed to execute what is a very complex company?
Dave Calhoun: Yeah. I always, I appreciate your asking it, Peter. First of all, the process we have in place is a good one. Steve Mollenkopf in the Chair role, Bob Bradway in the governance role, the Board at large, they’re going to look at the market every way they can. They know I have an internal candidate that I think the world of. They will balance sort of their perspective and get to the right conclusion with my full support. I do not expect that to happen in the next month or two. So, let’s all be clear about that. Look, my prescription is pretty simple. You know as well as anybody, maybe better than anybody how long-term this business is. You also know that mistakes that matter are usually in the development of another airplane, not so much in the production issues that we face today or the supply chain issues that were created from COVID.
These are in the context of aviation, short-term issues that have to get wrestled through slowly in a disciplined way. On the other hand, when you get big development programs wrong, you pay a price, and you pay it for a long time, and I know an awful lot about that. So, my view is that next leader has to be prepared to make smart long-term decisions and get the development programs right. So, that’s the prescription that I’ve offered to the Board, that I offer to pretty much everybody. And again, I have an internal succession plan broadly that I like. And anyway, we’ll see where things turn out. But either way, they have my full support.
Peter Arment: Appreciate it. Thanks.
Matt Welch: Lois, we have time for one more question.
Operator: Thank you. And that question will come from the line of Jason Gursky from Citigroup. Please go ahead.
