Ron Epstein: Yes, that’s been doing great. And then maybe the second question, this one is a little more difficult. The — I’m still trying to get my head around how we got here. Meaning if you go back to the beginning of the MAX issue, wasn’t the 737 line like the most scrutinized production line in the world? So, what happened to get to where we got today? I understand that revamping the quality system and all that is all great news. It’s a positive move forward. But why did that have to happen now? And I just don’t understand that.
Dave Calhoun: Well, Ron, it’s a — it should never happen. So, the question about now is not so relevant. It should never and can never happen. I am incredibly proud of the work that our people do on the 37 line. I think it has steadily progressed. Quality numbers have gotten better. But when you have an escape and then when everybody concludes exactly what happened in that escape, lights another fire. So, you take another step forward with respect to all things quality. And you make certain that whatever it was that created that opportunity for failure in the sky or in flight can never happen again. And that has already happened, and then we’ll learn from everything. So, yes, I think I understand your underlying context for the question, but I probably take exception to that premise.
Ron Epstein: Okay.
Operator: The next question is from the line of Cai von Rumohr from TD Cowen. Please go ahead.
Cai von Rumohr: Yes. Thanks so much. So, now that you’ve waived the exemption on the engine anti-icing and you’re designing the new system, you said it would take about a year. Have you accelerated that at all? And could you accelerate it more because my assumption is that is going to be the long pole in the tent in terms of when you — when the FAA can certify the MAX 7 and 10?
Dave Calhoun: I think that is an accurate statement that you just made. Given the fact that we made this decision just a couple of days ago, needless to say, we will throw more engineers at it. We’re going to put more work in it and can accelerate it. And the nine months that I discussed with Senator Duckworth was based on my understanding of that project before I made this decision. So, the answer is yes, we’ll step up resources. We’ll step up whatever testing is required. We will do everything we can to inform the FAA about that particular part of that program. So, — and that’s where we stand today. And you are correct. That is the pole in the tent. All of us should be watching.
Cai von Rumohr: Terrific. Thank you. And then another quick one. With the supply chain running at the master schedule but you’re delivering not quite as many, should we think about a fairly large build in the inventory account here in the next couple of quarters until you get beyond that?
Brian West: Yes, there’s two things, Cai, that are going to be things we have to deal with in cash flow. One is going to be the 777X investment I discussed as well as what you just described. And that’s contemplated in my description of what we thought the bottom look like. And then we just got to go run the play and work through what’s in front of us. But more work ahead, and we’ll describe it more specifically as we move through the year.
Cai von Rumohr: Thank you.
Matt Welch: Hey Lois, we have time for one more question.
Operator: Thank you. And that question comes from Noah Poponak from Goldman Sachs. Please go ahead.
Noah Poponak: Hey, good morning everyone.
Dave Calhoun: Hey Noah.
Brian West: Hi Noah.
Noah Poponak: Might go over one if I’m last. But Brian, recognizing that there’s some limitation here in how you can discuss it, but maybe just trying to talk out MAX units this year with assumptions of not breaking to higher rates. You made it a point to say you’re at 38. I know that rate final assembly, where the entire supply chain is, is always a different number. But if I just simply said 31 for six months and 38 for six months, that’s in the low 400s and then you unwind five to 10 of inventory a month. I can kind of get somewhere near 500 or just decent growth from 2023. Is that just a reasonable starting point as we wait to learn more from the FAA?
Brian West: Noah, I completely understand the question. Those are the inputs I described. But out of respect for the process that we need to go through the FAA, I just got to steer away from specificity. It’s just not the right time. We’ve got work in front of us. And I promise when appropriate, we are going to be more specific. But anyway, that’s — it’s probably going to be on the specificity of those numbers, wait and see. It’s just not appropriate.
Noah Poponak: Yes, fair enough. Fair enough. Are you willing and able to speak to just updating what the cap is these days on the monthly inventory unwind and how China plays into that?
Brian West: I don’t know we think about a cap. We’ve got the shadow factories that have been working for quite a while. And they know the routines, and they’ve been pretty steadily on both 37 and the 87, consistently meeting month in, month out liquidation targets and expectations for customers. So, I don’t think there’s any kind of cap. We’re just focused on we know exactly the piles of inventory. It’s 140 on the 37 that I described. It’s 50 on the 87 that have to get the rework. And we’re just going to move through this year with real focus in order to be in a position where we start shutting these shadow factories down. And then we’re just going to run that play as hard as we can.
