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Old 25th Jul 2013, 09:30
  #707 (permalink)  
Pittsextra
 
Join Date: Jan 2012
Location: UK
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From yesterday's earnings call

Got to be honest overall they were pretty unconcerned about this situation and re the repair a specific question was asked :-

Our next question is from Josh Freed with the Associated Press. Please go ahead.
<Q - Josh Freed>
: Hi, there. On the Heathrow 787, can you say whether Boeing is going to pay for that warranty and
conduct a warranty repair, pay for the repair under warranty and pay for it? And then more big picture, can you say sort
of where that fits in with your kind of readiness to carry out repairs like that? I mean, is that something that you guys
are figuring you'll do in-house? Is that more of a contractor thing? How should we think about how future hull repairs
will be done on 787s?

<A - W. James McNerney>
: Well, any hull has – gets dinged up, okay? With lots of customers over – and we do have
warranty programs that cover a lot of this. This specific incident you're talking about, I assume, was Ethiopian.

<Q - Josh Freed>
: Yeah.

<A - W. James McNerney>
: And, yeah, and we're in discussions with them right now about how to handle that. We
want to make sure they are in agreement with our approach. We have – for the last five or six years, we've thought
about how to repair composite structures when they are damaged and we will obviously honor any and all warranty
obligations as we do that. And typically both we and the carrier have insurance that back this up. So this – if the
question eventually gets to a financial impact, there will be very little.

<Q - Josh Freed>
: Sure. And is that a repair that you folks would typically carry out in-house? Or does that – or do
you expect that future hull repairs would be done more by third parties?

<A - W. James McNerney>
: I think typically as we introduce new airplanes, we disproportionately do the repair. But
over time, the industry learns how to do the repair, and we work with other maintenance and repair operations because
it benefits our customers to have decentralized capability around the world. I think in this case, we will have, I think,
Ethiopia in this case because it's a very new model, very new airplane type, who rely on us disproportionately for the
advice on how to handle it.

<Q - Josh Freed>: All right. Thank you.
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