The Chinese aviation regulator stated that it had a meeting with Boeing Co (NYSE:BAC) to discuss the 737 MAX the day before the company announced its intentions to find new buyers for some of the MAX jets planned initially for China.
The Civil Aviation Administration of China stated, as reported by Reuters, that the primary topic of discussion at the meeting on September 14 was pilot training plans concerning the model’s potential return to service.
In addition, it was stated that a revised report would be distributed after obtaining responses to the questions posed during the meeting.
Meeting With Boeing Co
The Chief Financial Officer of Boeing Co (NYSE:BAC), Brian West, stated on September 15 at a Morgan Stanley industrials conference in California that the company would start remarketing some of the 737 MAXes it has in inventory for carriers in China. The meeting was held in California.
“.. we have decided to choose those planes. He stated that we could not put off making that decision indefinitely. “As a result, we will begin remarketing some of those airplanes, which had previously been designated for sale to our Chinese clients. And we don’t take that decision lightly either. These clients are precious to the company. It’s a significant consumer base.”
The idea was also disclosed by the Chief Executive Officer of Boeing, David Calhoun, on the same day during a United States Chamber of Commerce aerospace event.
According to a story from Leeham News, he said, “We are remarketing a small fraction of them.” “We will not produce any aircraft for the Chinese market now.” We don’t put ourselves in any danger at all. Then, according to what we find, we will either continue or expand our efforts to remarket.”
Although the two parties appear to be exchanging messages in the media at this time — with one of the aerospace industry’s most lucrative markets seemingly hanging in the balance — representatives from Boeing Co (NYSE:BAC) did not respond to a request for comment made by the WBJ on Tuesday morning.
The search for new clients comes at a time when China continues to be the principal holdout in the recertification of the MAX, which was grounded for twenty months after two fatal accidents that occurred late in 2018 and early in 2019.
The Federal Aviation Administration in the United States approved the jet in late 2020, and observers believe that the delay in China was caused by ongoing trade and geopolitical tensions between Washington D.C. and Beijing. The FAA approved the jet in the United States.
According to the order data provided by Boeing Co (NYSE:BAC), 116 unfulfilled orders for MAX aircraft are placed by customers in China.
Even though airline customers often enjoy discounts of up to sixty percent off the stated pricing, the total worth of those jets would still be more than fourteen billion dollars if purchased at list rates.
At the second quarter, the total number of MAX aircraft in Boeing’s inventory stood at 290. Those were the only ones left over from the more than 450 constructed but had not yet been delivered at the grounding time.
While the 737 continues to be the most crucial individual aircraft program to the Wichita economy, Spirit AeroSystems Inc. in Wichita is responsible for constructing approximately 70 percent of the structure of the MAX.
Wichita is home to 10,000 Spirit (NYSE: SPR) employees.
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