Chinese Airlines Stop Buying Boeing Planes
Boeing had to suspend delivery of the planes to China, which opened up leasing opportunities for airlines operating outside China
Quick overview
- Boeing has suspended plane deliveries to China due to the ongoing trade standoff between the US and China.
- This situation has created leasing opportunities for airlines outside of China as some 737 Max jets are being redirected to other clients.
- Boeing's Region President Ortberg expressed optimism about the company's cash flow and operational performance in the first quarter, anticipating better results than expected.
- The trade tensions, exacerbated by tariffs imposed by President Trump, continue to affect Boeing's operations and relationships with Chinese clients.
Boeing had to suspend delivery of the planes to China, which opened up leasing opportunities for airlines operating outside China following the trade standoff between the United States and China.
“They have stopped taking aircraft deliveries because of the tariff environment,” Region President Ortberg said in a statement to CNBC TV.
In an interview, he noted some of the 737 Max jets earmarked for China had been brought back to America.
“Certainly, several models intended for China, that Boeing had planned to manufacture this fall, can be allocated to different clients,” Ortberg said.
“There’s no shortage of people willing to purchase the Max aircraft,” said Ortberg. “We intend to survive, I plan not to allow this midterm spending control policy to slow down the recovery
Ortberg anticipated that Boeing’s cash outflow and operational loss during the first quarter would be more positive than the market expected. This is because of a sharp increase in aircraft deliveries during the January-March quarter.
President Trump has waged a Trump-style trade war with China and imposed severe tariffs on practically all imports to the US. Although he has eased some of the greatest burdens, his relationship with China remains stressed.
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