China is considering resuming purchases of Boeing’s 737 Max aircraft when the U.S. and Chinese presidents meet this week at the APEC summit, according to Bloomberg News. The report states that Chinese President Xi Jinping is not expected to make a formal order for the 737 Max, but rather a memorandum of understanding or letter of intent. The terms of any potential agreement are still being discussed and could change before the meeting on Wednesday.
Boeing has been waiting for more than four years to resume deliveries of its bestselling 737 Max to Chinese airlines. As of June, about 90% of its 737 Max jets in China had already resumed commercial operations. However, the company has faced challenges in securing new orders from Chinese carriers since 2017 due to political and trade tensions between Beijing and Washington.
In September, Boeing slightly increased its annual 20-year forecast for new plane deliveries to China, citing economic growth and increasing demand for domestic travel. The company predicts that China’s fleet will more than double to nearly 9,600 jets over the next 20 years, making it the largest domestic aviation market in the world. The demand for single-aisle planes like the Boeing 737 Max family is expected to be significant.
In April, China’s aviation regulator published a report that Boeing saw as a positive step towards resuming deliveries. However, no deliveries have resumed yet. Boeing has declined to comment on the Bloomberg report.
In conclusion, China’s potential resumption of purchases of Boeing’s 737 Max aircraft is a topic of discussion ahead of the APEC summit. The terms of any agreement are still being negotiated, and Boeing has been waiting for years to resume deliveries to Chinese airlines. The company remains optimistic about the future demand for its planes in China’s growing aviation market.
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