“As we highlighted last quarter, we continue to work through seat certification issues affecting some deliveries and I expect this will be a challenge for us for the balance of the year.”

In context

“gned on the criteria to move to the next rate. If you look back before the strike last fall, we've seen about a 50% reduction in traveled work and a 25% reduction in rework hours on the 737 line. So the changes we've made to strengthen our quality system are delivering results. Even more importantly almost every customer I talk with report an improvement to the quality of the airplane. On 787 we continue to produce at five per month and I'm pleased to report that we've completed the work on the last joint verification airplane in Everett which now allows us to close our shadow factory and redeploy the people and facilities dedicated to that work. We're poised to move to seven per month this year provided our KPIs indicate a stable production system and they're currently looking very good. As we highlighted last quarter, we continue to work through seat certification issues affecting some deliveries and I expect this will be a challenge for us for the balance of the year. With the current cash balance and the production ramp status I feel we are well on our way to stabilizing the business even in the face of the tariff situation which I'll address in a moment. Now let me switch to the next priority which is improving the development program execution. As I mentioned a quarter with EAC stability in defense is a good start, but our efforts run deeper than that. During the last quarter I mentioned that we had reached an MOA with the customer on the T7 program for which we termed active management, and we've since completed our first two incentive milestones associated with that agreement. On VC-25B we continue to work with the customer to revise the program plan to allow for an earlier first delivery while maintaining our focus on safety and quality. And we r”