Boeing Delivers Dreamliner Plane to China, Resumes Key Market Relations

Summary

  • A 787-9 aircraft for Juneyao Airlines, a privately owned Chinese carrier, took off from Washington state towards Shanghai, marking a new phase in the relationship between Boeing and China after suspensions in 2019.
  • With the delivery confirmed by Boeing, the share prices saw a 1.6% surge during the pre-market hours.
  • The revamp of MAX deliveries could serve as a significant financial step for Boeing, allowing it to rid its inventory of multiple aircraft.
  • This breakthrough could offer better prospects for future deliveries and orders.
  • However, future dealings with Chinese airlines are still susceptible to geopolitical changes between Washington and Beijing.

Boeing’s Comeback in China

A 787-9 for China’s Juneyao Airlines privately launched from Washington’s Everett Paine Field en route to Shanghai, Flightradar 24 data revealed. Boeing acknowledged the dispatch in an official statement.

Following the news of the upcoming announcement, Boeing’s shares experienced a 1.6% rise before the commencement of U.S. stock market and remained unchanged in the afternoon trade.

From Suspension to Resumption

In 2019, China ceased most Boeing plane orders and deliveries after the 737 MAX was grounded globally due to fatal crashes. A resumption in MAX deliveries would symbolize a fresh start in the Sino-US Boeing relationship and a significant financial boost enabling it to clear out numerous planes from its inventory, Richard Aboulafia of AeroDynamic Advisories commented.

Moreover, the recent Dreamliner delivery is seen as a gateway to larger breakthroughs in deliveries and orders.

Current Market State

Recently, Boeing leased a Dreamliner plane to a Chinese client in 2021, but direct 787 handovers to Chinese airlines ceased after November 2019. The market expects the recommencement of Dreamliner deliveries to China, following reports from AAP/AIR on preliminary flight activities for a 787 earmarked for Juneyao Airlines, registered as B-20EQ.

A Path to MAX Deliveries

The Air Current, a trade publication, stated that China’s aviation regulator, the Civil Aviation Administration of China (CAAC), granted Boeing significant clearance earlier this month, allowing the manufacturer to ready MAX aircraft for dispatch. Safety bans have been removed, opening up the possibility for next-stage MAX deliveries.

New deliveries to China are still awaiting approval from China’s National Development and Reform Commission (NDRC), according to the Air Current report.

Future prospects and impact

This recent breakthrough could positively impact the foreign exchange and trading sector, predominantly in relation to Boeing and its affiliate assets.

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