The first Boeing 737 MAX jet delivered to a Chinese airline since March 2019 touched down in China on Saturday, signifying the conclusion of an almost five-year import freeze on the planemaker’s most lucrative jets. The MAX 8, handed over to China Southern Airlines, completed its journey from Seattle Boeing field in Washington state, making stops in Hawaii and the Northern Mariana Islands before reaching its final destination in Guangzhou, southern China.
China, initially the first country to ground MAX jets after fatal accidents in 2018 and 2019, recently granted Boeing permission to resume deliveries of its 737 MAX 8 to local customers. Despite the lifting of safety bans on the MAX, new deliveries had been on hold since early 2019 due to escalating tensions between Washington and Beijing. This green light from China is a significant positive development for the U.S. planemaker, which has been grappling with challenges, including safety concerns and production constraints.
The resumption of MAX deliveries to China is crucial for Boeing, as Chinese airlines have a substantial order backlog, with at least 209 MAX planes on order, according to aviation data provider Cirium. Boeing revealed that out of the 250 finished MAX planes in its inventory, 85 were earmarked for Chinese customers. The import freeze compelled Boeing to remarket 55 of these planes to other customers last year.
While the fallout from the mid-air incident involving a 737 MAX 9 operated by Alaska Airlines has further strained Boeing’s position, China’s approval for MAX imports is expected to alleviate some concerns. The FAA’s intervention in production schedules could potentially delay new plane deliveries, impacting both airlines and suppliers already dealing with the aftermath of the MAX crisis and the pandemic.
However, as long as China continues to permit MAX imports, the country seems poised to receive its backlog of planes, providing a positive outlook for Boeing. Chinese airlines are anticipated to take delivery of 64 MAX 8 jets in 2024 and 58 in 2025, according to Cirium data. The MAX handover comes after Boeing’s first direct delivery of a 787 Dreamliner to a Chinese customer in December 2023.
China, being one of the fastest-growing aerospace markets, is crucial for Boeing’s global projections, estimating that the country will account for 20% of the world’s aircraft demand through 2042. Boeing, China Southern, and the Civil Aviation Administration of China did not comment on the recent delivery.
