Boeing is set to resume airplane deliveries to China next month after a pause attributed to trade tensions during the Trump administration, as stated by CEO Kelly Ortberg at a recent Bernstein conference. This indicates a positive shift in relations, as Ortberg mentioned that China has confirmed it will proceed with deliveries.
Boeing, a significant U.S. exporter, has been impacted by tariffs on imported components from countries like Italy and Japan, particularly for its Dreamliner planes manufactured in South Carolina. However, Ortberg noted that most of these costs can be recuperated through exports and that duties apply mainly to deliveries to U.S. airlines.
Despite the ongoing changes in trade policies, Ortberg expressed optimism that current challenges would not be permanent. He emphasized plans to increase production of the 737 Max jet, contingent on receiving approval from the Federal Aviation Administration (FAA), which had limited output due to safety concerns stemming from a prior incident. The goal is to reach a production rate of 42 jets per month by midyear, possibly escalating to 47 jets later on.
The anticipated certification of the Max 7 and Max 10 variants is also on track for completion by the end of the year. Airline CEOs have praised Ortberg’s leadership amid Boeing’s ongoing recovery from safety crises, particularly following two fatal 737 Max crashes. United Airlines’ CEO, Scott Kirby, acknowledged the company’s strides in overcoming challenges, though he noted that overall supply chain issues continue to affect new plane deliveries industry-wide.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
