The arrival of Boeing’s 787 Dreamliner in Shanghai marks a significant moment, potentially signaling a new phase in the company’s relationship with China. This development, with the aircraft landing at around 4:20 p.m. local time, is Boeing’s first direct delivery to China since 2019. Juneyao Airlines, a privately owned Chinese airline, received the 787-9 model, indicating possible progress towards resuming deliveries of the 737 MAX in China.
A Milestone for Boeing’s Business
This event is crucial for Boeing, given the halt in 737 MAX deliveries after the model was grounded globally following two fatal crashes. The resumption of deliveries would not only help Boeing clear its inventory backlog but also open doors for new orders and deliveries in one of the world’s most significant markets for aircraft demand.
Boeing’s direct handover of the 787 Dreamliner to a Chinese airline, a first since November 2019, could be a precursor to restarting 737 MAX deliveries. Recent preparatory activities for a 787 meant for Juneyao Airlines had sparked anticipation. Boeing currently has 60 undelivered 787s, with a portion assigned to Chinese airlines.
The dynamics between the United States and China play a role in shaping Boeing’s business prospects. Recent high-level meetings and dialogues between leaders and top military officials from both nations hint at an improving political climate, which could positively impact Boeing’s dealings in China.
Steps Towards MAX Aircraft Deliveries
A key development for Boeing has been the clearance reportedly received from China’s Civil Aviation Administration (CAAC) for preparing MAX aircraft for delivery. Although MAX planes already operate within China, new deliveries had been paused. The CAAC and the National Development and Reform Commission (NDRC) have yet to comment on these developments.
Resuming MAX deliveries in China could significantly influence Boeing’s financial targets. Analysts note that the $10 billion free cash flow goal set for 2025-2026 might see a boost if these deliveries proceed, as initial projections did not include China’s potential contributions.
Boeing’s delivery of the Dreamliner to Shanghai could be a turning point in its relationship with China. This move might pave the way for restarting 737 MAX deliveries, impacting both the company’s strategic positioning and financial health.
Source: Reuters
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
