The Chinese government is nearing a decision to lift the commercial freeze on Boeing’s 737 Max jetliner, potentially announcing it at the Asia-Pacific Economic Cooperation (APEC) in San Francisco this week. This development may coincide with a meeting between President Joe Biden and China’s President Xi Jinping during the APEC gathering, symbolizing an improvement in relations between the two countries, according to sources familiar with the matter cited by Bloomberg.
While discussions are ongoing, it is important to note that a concrete agreement has not been finalized. Furthermore, there is no expectation for President Xi to make a formal order for these planes.
Since 2018, Boeing has not secured any significant sales of the 737 Max in China. The worldwide grounding of the aircraft after two fatal crashes in 2018 and 2019, along with the delayed approval from the Federal Aviation Administration for design changes, have hindered Boeing’s efforts to regain sales momentum in China.
Boeing has refrained from commenting on the report, and inquiries have been made to China’s Foreign Ministry for their input.
In late August, Bloomberg reported that two 737 Max aircraft designated for China had been taken out of storage and prepared for delivery, with sources anticipating imminent handovers.
Data from BC Capital analyst Ken Herbert reveals that as of the end of July, Boeing had 118 outstanding Max orders exclusively for China. Of these, 34 were allocated to China Southern Airlines, while there were additional orders for 25 wide-body 777 jets and 11 “Dreamliner” 787 models from Chinese carriers. Notably, Boeing’s guidance for 2023 and beyond currently excludes any China sales.
