Boeing, which has not delivered 737 MAX planes to Chinese buyers in three years, plans to resell some of the 737 MAX originally scheduled for delivery to China.


  On September 15, local time, according to a Reuters report, executives of global aircraft manufacturer Boeing said that it would resell some of the 737 MAX planes originally planned to be delivered to Chinese customers.


  On September 16, the relevant person in charge of Boeing China responded to the surging news reporter, saying, "China is an important market for our aviation industry, and we have supported the development of China's civil aviation for 50 years. Although the demand for our aircraft is still strong, relevant The timing of progress also depends on other factors. We are working closely with our clients during these dynamic times.”


  The head also said, "The good news is that demand in other markets around the world is very strong and in today's supply chain constrained environment, existing inventory provides a flexibility. This allows us to adjust production and deliver according to reduced Risky plans to reallocate existing inventory. This prudent approach allows us to deliver aircraft to customers who are ready to receive them, while ensuring that we are still able to deliver aircraft to Chinese customers when the time is right.”


  According to multiple foreign media reports, Boeing Chief Financial Officer Brian West said at an event, "Boeing has been delayed for a long time before making a decision on what to do with these originally planned deliveries to China. 737 MAX decision." Boeing Chief Executive Dave Calhoun did not specify which Chinese airline's orders for the plane would be affected.


  Talking about the need to resell some of the 737 MAX, Calhoun said resuming deliveries in China was critical to Boeing's future, but said the prospects for selling planes to China in a year or two were bleak.


  "But I think one day we'll go back to where we were, I just don't think it's a fast date." Looking ahead, Calhoun said he doesn't see a slowdown in aircraft demand.


  In October 2018 and March 2019, there were two consecutive air accidents involving Boeing 737 MAX 8 aircraft within six months. It has been grounded worldwide for nearly two years, and was approved by the United States in November 2020. The Civil Aviation Administration of China issued an airworthiness directive on December 2 last year, and has not yet approved a return to flight. Or as a result, Boeing has not delivered 737 MAX aircraft to Chinese customers since 2019.


  Regarding the timing of the return to flight, Yang Zhenmei, the Airworthiness Department of the Civil Aviation Administration, said at a press conference on December 3 last year that the premise for the commercial return of the Boeing 737 MAX 8 is to fully meet the three principles determined by the Civil Aviation Administration. Obtaining airworthiness approval is only the most basic work. In the follow-up, domestic airlines will also complete aircraft modification, parking aircraft recovery, driver training and other work. After the supplementary operation certification, it is expected to be completed by the end of 2021 or the beginning of 2022. Resuming commercial operations of the existing domestic fleet and restarting the introduction of new aircraft.


  At the end of the second quarter of this year, the average production rate of Boeing 737 increased to 31 per month. Boeing had 290 outstanding 737 MAX planes at the end of the second quarter, about half of which were for Chinese customers, Chief Financial Officer Brian West said on an analyst call. Deliveries this year will be around 400, down from the 500 the company forecast earlier this year.


  In the first half of this year, Boeing’s revenue was $30.672 billion, down 5% year-on-year. Net income under GAAP was -$1.082 billion, compared to $0.6 billion in the same period last year. Among them, revenue in the second quarter was lower than market expectations, at US$16.681 billion, down 2% year-on-year. GAAP net income was $160 million, down 72% year over year.


  As of press time, Boeing (BOEING) was at $146.5 in pre-market trading, down 2.19%.


source: china news

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