China Could Be Lining Up Boeing’s First 737 MAX Order Since The Grounding

Could this week’s meeting between Joe Biden and Xi Jinping defrost China and Boeing’s commercial partnership? As reported by Reuters, China could be looking to resume purchases of Boeing’s 737 MAX family aircraft for the first time since 2019.

Reforging friendships

China’s Civil Aviation Authority (CAAC) was the first regulatory agency to ground the MAX variant in 2019 following the Lion Air and Ethiopian Airlines disasters in October 2018 and March 2019, respectively. Alongside dragging its feet at recertification, the country paused deliveries for its state-owned airlines, which have yet to resume.

Analysts have highlighted China and the US chilly trade relationship as one of the issues limiting Boeing’s market share within the country; the last Boeing 737 MAX order was placed in 2017, with the company quickly losing ground to Airbus and COMAC.

Earlier this year, the US-based aircraft manufacturer criticized the geopolitical differences and the strain it was having on the US aviation industry after losing out on a $37 billion deal between China and Airbus, urging both countries to open a dialogue.

“Boeing aircraft sales to China historically support tens of thousands of American jobs, and we are hopeful orders and deliveries will resume promptly.”

Photo: Boeing

However, as China’s aviation industry expands and the need for capacity grows, Airbus’ nearly 5-year-long A320neo waitlist could impact its market dominance. According to Boeing, to maintain its position as the largest domestic market in the world by the 2040s, China would need to double its current fleet number to around 9,600, around 6,500 of which would be narrowbody aircraft, like the A320neo and 737 MAX.

Return to the skies

Boeing Commercial CEO Stan Deal is remaining cautiously optimistic that trade relations will improve. Speaking to Aviation Week on Monday, Deal noted Boeing had been over to meet with airlines and government officials and had the inventory to fulfill orders,

“I don’t think it’s ever too late. It’s a long-term market that’s growing. I sense some positive momentum, mainly paced by the recovery of traffic… Demand recovery tends to mean the airlines are starting to think through their capacity plans for the long term.”

Photo: Thiago B Trevisan | Shutterstock

Deal also outlined the re-staffing of its Zhoushan-based 737 delivery center, where deliveries are set to resume later this month, according to South China Morning Post. The facility, located in Zhejiang province, was opened back in 2018 and has remained largely inactive despite having the capacity to deliver up to 100 737 MAX to the Chinese market each year.

Deal confirmed that one aircraft is currently under completion in Zhoushan, with further expected through the remainder of the year.

There are currently 94 737 MAX aircraft active in China, in operation with major carriers, including Air China, China Eastern, China Southern Airlines, and Shenzhen Airlines. One Shanghai Airlines jet (B-1251) remains in storage at Taiyuan Wusu International Airport (TYN) as of November 2023.

One hundred eighteen orders for Chinese airlines remain unfulfilled, with several previously completed aircraft remaining grounded at Boeing’s Renton Facility. In August, Boeing revealed it was preparing the aircraft for delivery, with initial handovers to take place “within weeks,” The Seattle Times reports.

What are your thoughts on China’s potential Boeing order? What airlines would you like to see operating the type? Let us know in the comments.

Sources: Reuters, Aviation Week, South China Morning Post, The Seattle Times