Boeing Set to Resume Dreamliner Deliveries to China

DALLAS — Boeing is preparing to resume deliveries of its 787 Dreamliner to China, which could potentially lead to the resumption of deliveries of its 737 MAX aircraft.

According to a Reuters report, sources say that Shanghai-based Star Alliance member Juneyao Air (HO), a privately owned Chinese carrier, is expected to receive a new 787 Dreamliner from Seattle, and it could take off as soon as Thursday. According to Cirium Diio data, HO's fleet is comprised of 17 A320 family aircraft and one Boeing 787-9.

Yesterday, The Air Current's John Ostrower broke the news of Boeing winning a key clearance from China's aviation regulator (CAAC). The regulator's deputy head told a Boeing executive in Beijing on December 8 that Boeing was "welcome to deepen its development in the Chinese market." The Air Current, citing unidentified sources, said the regulator's clearance was granted that same day.

Chinese orders and deliveries of Boeing planes have been largely suspended since 2019 following two fatal crashes involving the 737 MAX. The first commercial flight of a Boeing 737 MAX in China after the crashes took place in January 2023.

Business as Usual

Boeing's extensive track record of supplying aircraft to China started in August 1973, when they delivered a 707-320B manufactured in Renton. It was one of the first trade deals with China following then-US President Richard Nixon's 1972 trip. Boeing would later support China's membership in the World Trade Organization, which was accomplished in 2001. China is now the third purchaser of U.S. goods exports after Canada and Mexico.

The resumption of Dreamliner deliveries to China is seen as a precursor to the resumption of Boeing 737 MAX deliveries and the normalization of trade relations between the American manufacturer and the Asian behemoth. The return of aircraft deliveries is key for Boeing, as it would mark the reopening of doors to one of the world's most important aerospace markets. China is projected to account for 20% of the world's aircraft demand through 2042.

Boeing had previously halted deliveries of the 787 Dreamliner due to a data analysis error related to a component, but the Federal Aviation Administration (FAA) has now approved Boeing to resume deliveries after the issue was addressed. However, Ostrower points out that individual 737 MAX deliveries to China still require approval from China's National Development and Reform Commission.

The resumption of China-bound aircraft deliveries is expected to have a positive impact on Boeing's financial outlook, potentially contributing to its US$10 billion free cash flow target for 2025–2026. Boeing has several MAX planes for Chinese customers in its inventory and collects the bulk of its payment upon delivery.

Featured image: N787FT Boeing Company Boeing 787-8 Dreamliner KPAE PAE. Photo: Brandon Farris/Airways

https://airwaysmag.com/juneyao-milan-with-zhengzhou/