Boeing is set to restart deliveries of its 787 Dreamliner to China within days, a step that could pave the way for China to also end a more than four-year freeze on deliveries of Boeing’s profit-making 737 MAX, according to people familiar with the matter. Juneyao Airlines, a privately-owned Chinese carrier, will receive in Shanghai a new 787-9 Dreamliner from Seattle, the source familiar with the matter said. It could take off as soon as Thursday.
China, the world’s largest airplane market, has been critical to Boeing’s growth. Airlines there are expected to need 7,700 commercial jets over the next two decades, which would account for about 21% of Boeing’s potential future sales.
But Boeing had to delay the delivery of many planes to Chinese customers amid the coronavirus pandemic and a global ban on 737 MAX jets that followed two deadly crashes in recent months. The resumption of deliveries would indicate that the dispute between the US and China over trade and other issues may be easing.
The move comes as Commerce Secretary Gina Raimondo prepares to visit China on Sunday to promote U.S. business interests. However, the sources said the delivery restart isn’t expected to coincide with her trip. The exact timing of the first delivery will depend on the customer’s readiness and possible repairs for a manufacturing flaw that came to light this week: fastener holes drilled to the wrong shape in some Max 8 models in a structural component that helps maintain cabin pressure.
Earlier this month, Boeing started to move some 737 MAX planes earmarked for Chinese customers out of storage, saying that it must be resolved for a while while political tensions between the United States and China affect the global aviation industry. The remarketing of some of the single-aisle jets aimed to reassure China that the US aircraft manufacturer would continue to deliver the planes it promised.
Boeing aims to resume the delivery of 737 MAX jets in the third quarter, although it will still be delayed by lingering concerns over the planes’ safety record and regulatory approval in its largest foreign market. The planes are being grounded in most countries because of fatal crashes that raised questions about their design.
The first recertified Boeing 737 MAX jet to be delivered in China flew from Paine Field in Everett, Washington to Zhoushan, outside of Shanghai, on Saturday, marking the start of a thaw in trade relations between the world’s biggest economies. The flight was a test flight for the plane, which has been repaired to fix production flaws uncovered following the crash of an Ethiopian Airlines jet in March. Boeing’s new factory in Zhoushan will complete and deliver a few dozen jets annually. The company hopes to double that number eventually.