Boeing plans to resell aircrafts designed for China

Boeing will begin remarketing 737 MAX aircrafts ordered by the Chinese government, the company said, as deliveries are likely to drop due to tensions between the US and China.

Earlier, Dave Calhoun, CEO of Boeing, had already discussed with CFO Brian West the need to remarket the aircraft series. 

“We have long put off a decision regarding the 737 MAX. However, this cannot last forever. That is why we are announcing their resale,” West said at the Morgan Stanley conference.

Dave Calhoun, in turn, expressed doubts about resuming deliveries to China. 

Speaking to reporters in Washington, the CEO claimed the resale process to be slow as the company plans to protect Boeing customers in China. But waiting cannot last forever.

Back in July, the global manufacturer mentioned there were 290 planes that had not been delivered to customers. About half is destined for the Chinese side.

Biden’s administration has criticized China's actions hindering Boeing sales. As US Commerce Secretary Gina Raimondo said, the Chinese government is preventing its airlines from purchasing Boeing aircrafts, while the amount of failed transactions is estimated at "tens of billions of dollars."

Resuming deliveries to China is critical to Boeing's future, Calhoun noted. However, the prospects for selling aircraft to the Chinese side is highly doubtful in the short run.

The corporation might re-entry the market but this process is unlikely to happen in a year or two.

According to experts, Boeing does not forecast a slowdown in demand, as sales are "pretty resilient" at the moment.