Boeing Resumes Widebody Jet Deliveries to China After Regulatory Pause

Boeing has announced the resumption of its widebody jet deliveries to China, which were previously suspended due to a regulatory review by the Chinese authorities. The deliveries, involving the 777 and 787 models, are poised to commence in the forthcoming days, as confirmed by a source familiar with the situation. Additionally, the delivery of Boeing’s 737 MAX aircraft is projected to restart as early as next month.

This resumption marks a significant positive development for Boeing, which had previously alerted investors to a delay sparked by the Civil Aviation Administration of China’s (CAAC) examination of the batteries used in the 25-hour cockpit voice recorder. This scrutiny had momentarily stalled Boeing’s plane deliveries within the region.

The halt in deliveries had contributed to financial strain at Boeing, as evidenced by remarks from Boeing CFO Brian West in May. He indicated that the company’s second-quarter cash burn could align with, or potentially be “possibly a little worse” than, the $3.9 billion recorded in the first quarter.

Despite these challenges, Boeing’s engagement in China remains substantial. As per a year-end 2023 filing, Boeing reported having approximately 140 737 MAX 8 aircraft in its inventory, with 85 designated for Chinese customers. Throughout 2024 up to the end of April, Boeing successfully delivered 22 aircraft to China.

However, the recent regulatory review is likely to keep Boeing’s commercial jet deliveries for the second quarter at a steady level, without anticipated growth compared to the initial three months of the year. This situation underscores the complexities and regulatory hurdles multinational corporations often face in global markets, particularly in sectors as critical as aerospace.

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