Boeing Restarts Direct Deliveries Of 787 Dreamliner To China After Long Pause
After a significant gap, Boeing Co. (NYSE:BA), the U.S. aerospace giant, has recommenced direct deliveries of its 787 Dreamliner to China.
What Happened: A 787 Dreamliner was delivered on Thursday to Juneyao Airlines, a private Chinese airline, marking the first such direct delivery since November 2019, CNBC reported. The airplane departed from Boeing’s Everett, Washington, factory for Shanghai, marking a crucial milestone. The last delivery of a new Boeing 787 to a Chinese airline also took place in 2019, with a subsequent delivery in 2021 facilitated through a leasing company.
This development could potentially expedite further deliveries of Boeing’s top-seller, the 737 Max, which had its deliveries to China halted almost five years ago due to two fatal accidents in less than half a year. After the jet’s grounding in March 2019, the U.S. lifted its ban in 2020, and other nations followed suit.
Boeing has been working to ramp up production and deliveries of new jets, where manufacturers earn most of an airplane’s price. About a third of Boeing’s stockpile of approximately 250 Max planes is intended for Chinese airlines, as per Jefferies reports.
Why It Matters: This breakthrough follows Boeing’s landmark deal with Thai Airways, reported in December, where the airline favored the 787 Dreamliner over Airbus. This offered Boeing a competitive edge over Airbus SE.
Furthermore, Boeing received pivotal approval from China's aviation regulator bringing the aircraft manufacturer one step closer to resuming its 737 MAX deliveries in China after a hiatus of over four years. This approval was key for Boeing, moving it closer to resuming its 737 MAX aircraft deliveries suspended in 2019 following two deadly crashes.
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