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Boeing's aircraft deliveries to China resume soon, faces lawsuit from US Justice Department.

Boeing's aircraft deliveries to China resume soon, faces lawsuit from US Justice Department.

TraderKnowsTraderKnows
2024-07-01
Summary:Boeing is currently under intense scrutiny from the U.S. Department of Justice, and there are reports suggesting they plan to alleviate the situation by tapping into the recovering Chinese market.

According to flight tracking data and two sources, Boeing has resumed deliveries of wide-body aircraft to China. This follows a period in recent weeks when deliveries were halted due to scrutiny from Chinese regulators, also affecting the delivery of new narrow-body aircraft.

A source told Reuters that all Boeing deliveries to China will now be resumed.

Since 2019, deliveries of new Boeing aircraft to China have been intermittent due to two fatal MAX 8 crashes and tensions between Washington and Beijing over issues such as technology and national security.

The resumption of deliveries is good news for Boeing, which had previously informed investors about the delays in Chinese deliveries and is currently facing another safety and quality crisis.

Last Friday, a brand-new Boeing 777 wide-body freighter (registration number B-223S) flew from Boeing's factory at Paine Field in Everett, Washington to Beijing, owned by China Cargo Airlines, according to FlightRadar24's flight tracking platform.

Later on Sunday, another brand-new 777 freighter, registered as B-223T, also flew from Paine Field to Beijing, according to tracking data.

Air China has not commented on this.

A source told Reuters last week that several 777 and 787 wide-body aircraft deliveries are expected in the coming days, and deliveries of the 737 MAX are expected to resume as early as July.

Due to two fatal crashes in 2018 and 2019, the 737 MAX was grounded worldwide, and China suspended most Boeing aircraft orders and deliveries since 2019. Reuters reported on Sunday that the U.S. Department of Justice will charge Boeing with fraud related to the two crashes.

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Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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