“given the continued momentum we see with our suppliers and our own operations, that is something that we should deliver on in time, regardless of the demand environment.”

In context

“h higher in delinquencies just due to continued demand exceeding supply—the supply chain strain? And how long do you think it will take to get that back down to a more reasonable number? H. Lawrence Culp: It is—despite the progress we have talked about a few times now this morning, not only with inputs but outputs—just a function of demand outstripping supply. We highlight delinquency simply to make sure investors understand that dynamic is in play. Operationally, it is a number we are not proud of, because we are failing to meet customer expectations in that regard. I think it is going to take us a while yet to get to zero delinquency. That clearly is the goal. On-time delivery is one of our critical operational KPIs as part of Flight Deck. We are not going to be able to circle that, but given the continued momentum we see with our suppliers and our own operations, that is something that we should deliver on in time, regardless of the demand environment. Operator: Our next question comes from Douglas Stuart Harned with Bernstein. Douglas Stuart Harned: Good morning. Thank you. I wanted to continue on a look at the current environment because when you look forward and see some of the challenges out there—if we see jet fuel above $200 in Asia and in Europe—there are quite a few airlines that could be under some real financial pressure. When you look at the steps you need to take over the next year or so, how do you compare the concerns around, say, an airline that is in difficult financial straits and cannot do an overhaul versus simply reductions in flying hours that could take some dollars out of LTSAs? How do you think about these different hazards over the next year? H. Lawrence Culp: Well, Doug, the scenarios that we talked about earli”