Boeing is preparing to restart deliveries of its 737 MAX jets to China after a four-year halt, according to a report by Bloomberg News. The initial handovers are expected to take place within weeks. This is a long-awaited breakthrough for Boeing, which has been working to recover from one of the worst crises in its history.
.gif)
The 737 MAX has been caught in a trade stalemate between the US and China, with the grounding extending in Boeing’s biggest overseas market long after much of the world cleared it for flight. The narrowbody jet is not only one of the largest US exports but also Boeing’s main source of revenue and a critical component of Chief Executive Officer Dave Calhoun’s effort to restore profitability.
China Southern Airlines Co., the country’s largest carrier, is poised to take the first 737 MAX from Boeing, according to one of the people cited by Bloomberg. Officials for China Southern did not respond to requests for comment. The carrier led the way in resuming commercial MAX flights earlier this year after Chinese officials lifted flying restrictions in place since March 2019 in the wake of two fatal MAX crashes.
Boeing declined to comment on its interactions with China Southern. However, the company said in a statement that it continues to support its customers in China, with more than 95% of its current 737 MAX fleet in service. “For deliveries, we will be ready to deliver for our customers when that time comes,” Boeing said. The resumption of 737 MAX deliveries could still be derailed by a diplomatic snag. A series of US officials have visited China in recent months and come back empty-handed. Commerce Secretary Gina Raimondo is set to visit China on Sunday to promote US business interests, though the delivery restart isn’t expected to coincide with her trip, according to the people cited by Bloomberg. This development is certainly a positive sign for Boeing as it continues its efforts to recover from the crisis surrounding the 737 MAX. It will be interesting to see how this situation develops and what impact it will have on the aviation industry as a whole.