Boeing delivers first Boeing 787 to China since 2019
Boeing is set to resume deliveries of its 787 Dreamliner to China within days, a source told Reuters, a move that could pave the way for the Asian giant to also end a more than four-year freeze on 737 MAX deliveries.
Juneyao Airlines, a private Chinese carrier, will take delivery of a new 787 Dreamliner from Seattle in Shanghai, according to a source familiar with the matter. It could take off as early as this Thursday.
Analysts had expected the resumption of Dreamliner deliveries to China after consultant AAP/AIR this month reported preparatory flight activities for a 787 destined for Juneyao Airlines, registered as B-20EQ.
Twelve of the 60 undelivered 787s in Boeing’s inventory are destined for Chinese operators, Jefferies said Tuesday.
For Boeing, the resumption of deliveries would symbolize the reopening of the doors to one of the world’s most important aerospace markets, which it forecasts will account for 20% of global aircraft demand by 2042.
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But while any breakthrough with China is good news, Boeing’s future business with airlines there will remain vulnerable to geopolitical shifts between Washington and Beijing, said Rob Stallard of Vertical Research Partners.
“I would be surprised if Boeing would be inclined to raise its 2025-26 forecast,” he said.
A PATH TO MAX DELIVERIES
On Wednesday, trade publication The Air Current said Boeing had this month won a key clearance from China’s aviation regulator, the Civil Aviation Administration of China (CAAC), allowing the planemaker to prepare MAX aircraft for delivery.
The safety bans have been lifted as existing MAX planes are flying inside China, but new deliveries have remained on hold.
“We continue to support our customers in China and will be ready to deliver when that time comes,” Boeing said in responses to the Juneyao news and Air Current reports.
The CAAC’s deputy head on Dec. 8 told a Boeing executive in Beijing the planemaker was welcome to deepen its development in the Chinese market, Reuters reported. The Air Current, citing unidentified sources, said the regulator’s clearance was granted that day.
Individual MAX deliveries to China still need approval from China’s National Development and Reform Commission (NDRC), the Air Current report said.
A 737 MAX designated for China Southern Airlines (600029.SS) flew from Boeing Field in Seattle to Boeing’s nearby facility in Moses Lake, Washington, and back on Wednesday afternoon, according to data from flight tracking website FlightRadar24.
Analysts from Jefferies and Deutsche Bank said in investor notes that it appeared to be a customer acceptance flight – a test flight operated by an airline pilot that occurs before delivery.
MAX deliveries to China could provide some upside to Boeing’s $10 billion free cash flow target for 2025-2026, as that projection did not factor in potential deliveries to China, analysts have said.
Boeing has maintained 85 MAXs for Chinese customers in its inventory of about 220 planes, and collects the bulk of its payment upon delivery.
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