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- China may resume purchasing Boeing’s 737 MAX aircraft for the first time since 2017, a move that could improve trade relations and boost the U.S. aviation industry.
- The country’s rapidly growing aviation industry will require about 6,500 new narrow-body jets in the coming decades, according to a Boeing analysis.
- Boeing Commercial CEO Stan Diehl remains cautiously optimistic about improving trade relations, noting that the recovery in traffic is providing positive momentum for the company.
Could this week’s meeting between Joe Biden and Xi Jinping end China’s commercial partnership with Boeing? As reported by Reuters, China may be considering resuming purchases of Boeing’s 737 MAX family of aircraft for the first time since 2019.
rebuild friendships
The Civil Aviation Administration of China (CAAC) became the first regulator to ground MAX aircraft in 2019 following the Lion Air and Ethiopian Airlines crashes in October 2018 and March 2019, respectively. The country has stalled recertification and suspended deliveries to the national airline, which have yet to resume.
Analysts have highlighted the chilly trade relationship between China and the United States as one of the issues limiting Boeing’s domestic market share. His last order for the Boeing 737 MAX was in 2017, and the company quickly lost ground to Airbus and his COMAC.
Earlier this year, the U.S.-based aircraft manufacturer criticized geopolitical differences and the strain it was putting on the U.S. aviation industry after losing out on China’s $37 billion contract with Airbus, calling for dialogue between the two countries. I asked him to open it.
“Sales of Boeing aircraft to China have historically supported tens of thousands of American jobs, and we look forward to orders and deliveries resuming quickly.”
Photo: Boeing
But as China’s aviation industry expands and demand for capacity increases, Airbus’ nearly five-year waiting list for the A320neo could impact the company’s market power. According to Boeing, to maintain its position as the world’s largest domestic market by the 2040s, China will need to roughly double its fleet to about 9,600 aircraft, of which about 6,500 will be A320neos. It is said that it will be a narrow-body aircraft like the 737 MAX.
return to the sky
Boeing Commercial CEO Stan Diehl remains cautiously optimistic that trade relations will improve. Diehl said in an interview with Aviation Week on Monday that Boeing is meeting with airlines and government officials and has the inventory to fill orders.
“I don’t think it’s too late. It’s a market that will grow in the long term. We’re seeing positive momentum, mainly due to a recovery in traffic… A recovery in demand will help airlines consider long-term supply plans. It tends to mean that they are starting to.”
Photo: Thiago B. Trevisan | Shutterstock
Mr. Deal also outlined the reallocation of personnel at the Zhoushan-based 737 distribution center, which is expected to resume deliveries later this month, according to the South China Morning Post. The facility in Zhejiang province opened in 2018 and has the capacity to deliver up to 100 737 MAX aircraft to the Chinese market each year, but it is barely operational.
Mr Diehl confirmed that one aircraft is currently being completed in Zhoushan, with more expected to be completed by the end of the year.
Currently, there are 94 737 MAX aircraft in operation in China, operated by major airlines such as Air China, China Eastern Airlines, China Southern Airlines, and Shenzhen Airlines. As of November 2023, one Shanghai Airlines jet (B-1251) is stored at Taiyuan Wuxu International Airport (TYN).
Orders for 118 planes to Chinese airlines remain unfulfilled, and several previously completed planes remain parked at Boeing’s Renton facility. In August, Boeing revealed that it was preparing to deliver the aircraft and that the first deliveries would take place. “In a few weeks.” The Seattle Times reported.
What do you think about China’s potential Boeing order? Which airlines would like to operate this type of service? Let us know in the comments.
source: Reuters, aviation week, South China Morning Post, seattle times