Boeing Gears Up to Take On Airbus

Summary

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WSJ What’s News

Episode: Boeing Gears Up to Take On Airbus

Date: September 30, 2025

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Overview

This episode of WSJ’s "What’s News" covers the day’s top business and political headlines, highlighting Boeing’s newly revealed efforts to develop a next-generation aircraft to rival Airbus as the company seeks to recover market share after setbacks from the 737 Max crisis. The episode also touches on the looming U.S. government shutdown, legal developments involving Harvard and former President Trump, and a rare gathering of military leaders led by Defense Secretary Pete Hegseth.

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Key Discussion Points & Insights

1. Boeing’s Comeback Plan: A New Jet to Battle Airbus

• Boeing is in early stages of planning a new narrowbody jet, designed to replace the troubled 737 Max and regain ground from Airbus and its A320 series.
• Industry sources report: new engines (10–20% more fuel efficient), ultra-thin wings, redesigned flight deck and controls as likely features.
• This initiative marks Boeing’s attempt to “throw down the gauntlet” and win back lost market share in the coming decade.
• CEO Kelly Ortberg has not detailed the new jet yet, focusing on fixing internal quality issues and strengthening Boeing’s financial position.

“The plane Boeing is working on is a replacement for the 737 Max. ... What this really represents for Boeing is them throwing the gauntlet down at Airbus’s feet. They’re saying, you know, we’re not giving up.”
— Ben Katz, Journal aviation reporter (05:30–06:52)

Timestamped Segment:

• [05:15] Caitlin McCabe introduces the Boeing story
• [05:30] Ben Katz details Boeing’s plans and the broader industry context
• [06:05] Ben Katz explains strategic implications and Airbus rivalry
• [06:52] Caitlin McCabe adds commentary on CEO Ortberg and Boeing’s priorities

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2. Looming U.S. Government Shutdown

• A deal to fund the federal government remains out of reach; funding expires at midnight.
• Senate gridlock: Republicans (53-47 majority) lack the 60 votes required; their stopgap bill is opposed by Democrats demanding restoration of health care spending.
• A shutdown would furlough federal workers, halt some government services, and postpone the release of the key jobs report.
• Notably, this time the Office of Management and Budget is considering permanent layoffs, a new and severe step.

“Democrats are saying no, good, you didn’t negotiate with us. We have some leverage and we want to use it. And so they’re kind of at this just total gridlock.”
— Natalie Andrews, WSJ political correspondent (01:57)

“The Office of Management and Budget has signaled that ... they will be looking at ways to essentially fire federal employees, and those cuts will be permanent, which has never happened in the past decade or so.”
— Natalie Andrews (02:51)

Timestamped Segment:

• [00:34–02:51] Caitlin McCabe, Natalie Andrews explain the shutdown scenario and implications for Americans and markets

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3. Harvard Faces Federal "Debarment" Threat

• Trump administration moves to potentially ban Harvard from federal funding for alleged failure to address campus antisemitism.
• This follows a federal judge’s decision to restore $2.2 billion in research funds to Harvard.
• Debarment would cut university access to government grants, signaling an escalation in the administration’s standoff with elite academic institutions.

Timestamped Segment:

• [03:27] Caitlin McCabe outlines the confrontation between the White House and Harvard

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4. Trump Settlements with Social Media Giants

• YouTube to pay $24.5 million to Trump, settling after his account suspension; brings total social media settlements to over $80 million.
• Most funds earmarked for building a White House ballroom in the style of Mar-a-Lago.
• Legal experts attribute settlements to companies wanting to end litigation and curry favor with the administration.

“There’s more of a business reason for these companies to be settling with the president ... and show ... goodwill towards the president, who has been quite eager and quite willing to exact retribution on companies ... in his crosshairs.”
— Legal Expert (04:47)

Timestamped Segment:

• [04:47] Legal context and reasoning behind the settlements
• [05:15] Application of settlement funds

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5. Massive Military Gathering at Quantico

• President Trump and 800 top commanders gather at Quantico for a rare, high-profile meeting ordered by Defense Secretary Pete Hegseth.
• Initial rumors of mass firings gave way to speculation about morale-boosting, “warrior ethos” speeches, and possible announcement of the new national defense strategy.
• Secretary Hegseth faces scrutiny for allegedly mishandling classified information and for management tactics amid internal leaks; an inspector general report is pending.

“When this invitation came out, there was no reason given ... so it set off all kinds of speculation ... But after President Trump commented ... said it was about talking about how great everyone’s doing ... that concern has died down a bit.”
— Shelby Holiday, WSJ reporter (08:23)

“Secretary Hegseth has been putting information in signal chats that many believe was totally inappropriate.”
— Shelby Holiday (09:36)

• The scale of the event—organizing 800 military officials, logistics, security—is “a huge effort” and will cost millions.

Timestamped Segment:

• [07:44] Introduction to the meeting’s significance
• [08:23] Holiday explains the background and speculation
• [09:28] Discussion of Hegseth's management controversies
• [10:54] Logistical and cost challenges

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Notable Quotes

• “This really is a pivotal moment in Boeing’s history, essentially where they face this loss of market share. They’ve lost their crown to Airbus, and now they’re looking at how they can fight back.”
  — Ben Katz (00:53)
• “For Wall Street, this means traders will be watching just how this political wrangling unfolds and what its impact on the US economy might be.”
  — Caitlin McCabe (03:27)
• “Some inside and outside the administration think maybe this meeting is just about Secretary Hegseth getting ahead of some embarrassing news, which is an inspector general report on his handling of classified information.”
  — Shelby Holiday (08:23)

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Memorable Moments

• The sharp, direct framing from Ben Katz on Boeing’s corporate “pivotal moment.”
• Natalie Andrews revealing the unprecedented permanent firing possibility for federal employees.
• Shelby Holiday’s behind-the-scenes color on 800 military leaders scrambling logistics for a historic meeting, and the drama over leaked classified information.

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Summary Table of Timestamps for Key Segments

| Time | Topic | |-----------|------------------------------------------------------------| | 00:34–02:51 | U.S. government shutdown update & implications | | 03:27 | Harvard’s federal funding battle | | 04:47 | YouTube settlement with Trump, social media lawsuits | | 05:15–06:52 | Boeing’s new jet plan to challenge Airbus | | 07:44–11:32 | The rare Quantico military commander meeting |

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Tone & Language

The reporting is brisk and factual, with a focus on big-picture business and political impacts, as well as expert analysis and occasional wry or pointed commentary from the guests.

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This engaging episode provides a sharp overview of the business and political risks shaping markets and industry, especially focusing on Boeing’s gamble to fend off Airbus, government gridlock, high-stakes legal battles, and unusual military developments—succinctly equipping listeners with the knowledge to understand the next movements in these national stories.

Transcript

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[Caitlin McCabe]

The federal government barrels toward a shutdown after party leaders leave the White House without a deal. Plus, the Trump administration escalates its fight against the nation's oldest and wealthiest university, Harvard. And Boeing throws down the gauntlet and begins work on a new plane to replace the troubled 737 Max.

[Ben Katz]

So this really is a pivotal moment in Boeing's history, essentially where they faced this loss market share. They've lost their crown to Airbus, and now they're looking at how they can fight back.

[Caitlin McCabe]

It's Tuesday, September 30th. I'm Caitlin McCabe for the Wall Street Journal and here's the AM edition of what's News, the top headlines and business stories moving your world today. We begin in Washington where the federal government is careening toward a shutdown. Yesterday, congressional leaders from both parties met with President Trump to try to hash out a deal, but emerged with no breakthrough.

[Natalie Andrews]

Barring some sort of miraculous agreement in the Senate, the government will likely shut down Tuesday night. Funding for the government expires at midnight.

[Caitlin McCabe]

That's Wall Street Journal political correspondent Natalie Andrews. She says Republicans are holding firm on their seven week stopgap bill to keep the government funded, while Democrats say they won't give their support unless billions of dollars in health care sp spending is restored.

[Natalie Andrews]

Democrats are saying no, good, you didn't negotiate with us. We have some leverage and we want to use it. And so they're kind of at this just total gridlock.

[Caitlin McCabe]

While Republicans have a 53 to 47 majority in the Senate, they don't have the 60 votes needed to pass a spending bill. Without a deal, the government will shut down at 1201am Eastern on Wednesday, furloughing hundreds of thousands of federal workers and halting key operations. For Wall street, that means the all important jobs report likely won't be released on Friday. In holding firm, Democrats are making an important political calculation. They say if health insurance subsidies aren't extended, millions of Affordable Care act users will see their bills soar, often by hundreds of dollars or more a year but as Natalie explains, a shutdown could inflict other pain on Americans.

[Natalie Andrews]

The Office of Management and Budget has signaled that in addition to putting federal employees on leave, they will be looking at ways to essentially fire federal employees, and those cuts will be permanent, which has never happened in the past decade or so, as we've covered government shutdowns. So even though you have a lot of federal workers on furlough, they've generally gotten back pay and things like national parks have stayed open so that if people have vacations planned or things like that, they aren't just totally ruined and caught off guard.

[Caitlin McCabe]

For Wall street, this means traders will be watching just how this political wrangling unfolds and what its impact on the US Economy might be. Yesterday, gold hit a new record high as investors weighed the risks of a potential shutdown. The Trump administration is escalating its fight with Harvard University by starting a process called debarment that could make the university ineligible for federal GR over allegations of anti Semitism on campus. Earlier this month, a federal judge ruled that the government had to restore $2.2 billion in research funding to Harvard that the government had frozen earlier this year. This path to possible debarring would essentially declare the university unfit to do business with the government, which is another way the White House can seek to cut off funds. An administration official said the White House doesn't believe Harvard has sufficiently addressed anti Semitism on campus. A Harvard spokesman did not have an immediate comment. We've learned that YouTube has agreed to pay $24.5 million to settle a lawsuit brought by President Trump over the suspension of his account after the capitol riot in 2021. White House reporter Annie Linsky says this is the last of three similar settlements from YouTube, Meta and X, bringing the total from these cases to over $80 million.

[Legal Expert]

Legal experts we talked to have said there's more of a business reason for these companies to be settling with the president because it allows them to kind of put behind them this litigation and show sort of a sense of goodwill, a very generous amount of goodwill towards the president, who has been quite eager and quite willing to exact retribution on companies or entities that he finds to be in his crosshairs.

[Caitlin McCabe]

According to court papers, Most of the YouTube settlement has been earmarked for the construction of a Mar? A Lago style ballroom that Trump is building at the White House. And the Journal is exclusively reporting that Boeing is planning a new narrowbody airplane that would succeed the 737 Max.

[Ben Katz]

The plan is very much still coming together from Boeing's side. But what we've managed to pick out are kind of a few different pieces of evidence really showing what this new plane could really look like. So we're talking brand new engines that could be 10 to 20% more fuel efficient. We're looking at ultra thin wings. We're talking about a redesigned flight deck and control system.

[Caitlin McCabe]

That's Journal aviation reporter Ben Katz. He told us that the development of a new single aisle plane marks a long term bid by Boeing to recover business loss to rival Airbus during its series of safety and quality problems.

[Ben Katz]

The plane Boeing is working on is a replacement for the 737 Max. The 737 Max is the workhorse of the global aviation industry. It competes in the segment with airbus on the A320. The two of them dominate aircraft sales. They dominate percentage of flights. What this really represents for Boeing is them throwing the gauntlet down at Airbus feet. They're saying, you know, we're not giving up. You guys have taken a lot of market share off us. But aerospace industry is a long term game and if we start working on something now, we could have something to release in the next decade or so that could start clawing back the market share that Boeing has lost to Airbus over its series of crises. So this really is potentially a pivotal moment in Boeing's history, essentially where they face this loss of market chair. They've lost their crown to Airbus and now they're looking at how they can fight back.

[Caitlin McCabe]

Boeing's chief executive officer Kelly Ortberg hasn't publicly detailed any plans for a successor to the 737, saying that he continues to prioritize fixing the company's long running quality problems and shoring up its balance sheet. Coming up, Hundreds of military leaders are gathering with President Trump in Virginia today for a highly unusual meeting called by Defense Secretary Pete Hegseth. But what exactly are they doing there? We unpack that question after the break.

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[Shelby Holiday]

Foreign.

[Caitlin McCabe]

The president and roughly 800 of America's top military commanders are converging on a Marine base in Quantico, Virginia today for a highly unusual meeting convened by Defense Secretary Pete Heath. The gathering is the culmination of frustrations by Hegseth that his quote, warrior ethos agenda isn't being implemented quickly enough and comes as his management of the department has faced scrutiny from lawmakers. Wall Street Journal reporter Shelby Holiday has been following the lead up to the meeting. Shelby, I think when news of this meeting came out last week, it raised a bunch of alarm bells. It's not every day we see meetings like this, but it turns out it's all about something perhaps a bit more mild called warrior ethos. What is that?

[Shelby Holiday]

It really remains to be seen. But you're right. When this invitation came out, there was no reason given for the meeting. So it set off all kinds of speculation among senior officials about what this meeting was about. So at first, there was a lot of concern that it could involve some sort of mass firing of the top brass. But after President Trump commented on the meeting and said it was more about talking about how great everyone's doing, and it sort of seemed like it was a morale boosting meeting, that concern has died down a bit. Some of the senior officials I've been talking to think maybe they'll hear a bit more about the new national defense strategy that lays out the administration's priorities that is due any day. And so it would make sense that that could be talked about. But we are also, you know, reporting that Secretary Hegseth plans to give this speech about the warrior ethos, and it's unclear what that will entail. Some inside and outside the administration think maybe this meeting is just about Secretary Hegseth getting ahead of some embarrassing news, which is an inspector general report on his handling of classified information. If you remember those signal chats back in the spring, that's expected soon, too.

[Caitlin McCabe]

Yeah, those signal chats made a bunch of headlines earlier this year. But that's only one piece of criticism that Hegseth has faced since stepping into this role. Right.

[Shelby Holiday]

Yeah. So back in the spring, when the US Was launching Operation Rough Rider, which was a campaign against the Houthis in Yemen, Secretary Hegseth put details that many believed were classified into a signal chat, and that signal chat included people who did not have security clearances. So there's been a lot of concern that he was sharing classified information illegally, and that is the subject of an IG report currently. And that has led to a lot of criticism of his management style because he has turned around and really cracked down on leakers. In the Pentagon, there have been lots of discussions about lie detector tests. People have been fired for leaking. Yet he, the secretary of the entire department, has been. Has been putting information in signal chats that many believe was totally inappropriate. So that's been a big problem. And others in the building also think he might feel a bit overshadowed by some of his secretaries and top generals and military officials. For example, when the US Carried out that pretty incredible attack against Iran, it was the chairman of the Joint Chiefs that was said to be heavily involved in that and not Secretary Hegseth Shelby.

[Caitlin McCabe]

I also have to ask about the logistical coordination for a meeting like this. I mean, 800 of the top military brass coming to Quantico. How much of a scramble is this?

[Shelby Holiday]

It is a huge effort to get everyone here. We know that they've been told to wear their dress uniforms, but some who have been traveling and haven't been able to go back and get their dress uniforms may have to show up in something else. And I've been asking officials how they're getting to this location. And that is an operational security issue. Nobody wants to talk about how they're flying or traveling. However, we know it's going to cost millions of dollars. We're talking hundreds of officials from all over the world coming to one location with the president of the United States. I'm sure that security alone is going to be a super steep bill. So the logistics are definitely interesting here.

[Caitlin McCabe]

Super fascinating. That's Wall Street Journal reporter Shelby Holiday. Shelby, thanks for being here.

[Shelby Holiday]

Thanks for having me.

[Caitlin McCabe]

And that's it for what's news for this Tuesday morning. Today's show is produced by Kate bullivant and Rema McKenna. Our supervising producer is Sandra Kilhoff. And I'm Caitlin McCabe for the Wall Street Journal. We'll be back tonight with a new show. Until then, thanks for listening.

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