Boeing plans to remarket 737 MAX jets for Chinese Airlines

TEMPO.CO, Chicago – Boeing (BA.N) will begin remarketing some 737 MAX jets to Chinese customers because it cannot wait forever as political tensions between the United States and China rumble on deliveries, senior executives said. company on Thursday, September 15.

General Manager Dave Calhoun and Chief Financial Officer Brian West discussed the need to remarket some of the aircraft at separate events.

“We’ve put off decisions on these planes for a long time. We can’t put off that decision indefinitely. So we’re going to start remarketing some of these planes,” West told a Morgan Stanley conference.

Calhoun, speaking to reporters on the sidelines of an aviation event in Washington, expressed pessimism about the resumption of deliveries to China.

Regarding the need to remarket some jets, he said: “We will do it very slowly because I want to protect our customers in China but you can’t wait forever. You have to move them and there’s a big market.”

Boeing shares rose 1.8% on the news.

Boeing said in July it had about 290 planes undelivered and about half were destined for Chinese customers.

The Biden administration has criticized China for preventing Boeing purchases. US Commerce Secretary Gina Raimondo said last year that the Chinese government was blocking its national airlines from buying “tens of billions of dollars” worth of Boeing planes.

Calhoun said resuming deliveries to China was critical for Boeing’s future, but said the outlook for aircraft sales to China in the “short term … a year or two” was negative.

But he said: “I think we’ll get back to it one day, I just don’t think it’s a date anytime soon.” He said he thought the Biden administration wanted to help.

Calhoun said he hasn’t seen demand for planes slow down. “It’s pretty sturdy.”

Reuters

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