Russian expert warns: China's ban could cause Boeing to lose $1 billion to $1.5 billion annually.

Russian expert: Boeing may lose $10 to 15 billion annually due to China's ban.

Pavel Sevostyanov, director of the Political Analysis Department at the Russian University of Economics, explained to Russia's Sputnik that the ban by Chinese airlines on purchasing Boeing aircraft has caused significant financial losses for the American company. If this situation continues for more than half a year, Boeing's annual losses might reach $10 to $15 billion.

Previously, media reported citing sources that the Chinese government, due to the trade war, requested its airlines to stop introducing Boeing aircraft and halt purchases of equipment and parts from American companies.

Sevostyanov said, "The ban by China on Chinese airlines purchasing Boeing aircraft is causing or could cause losses for the company. If it continues for more than half a year, it will result in significant financial losses. China is a major market for American aviation companies. Boeing's annual losses might reach $10 to $15 billion. Before the outbreak of the coronavirus pandemic, Chinese airlines accounted for up to 25% of Boeing's supply. He believes that in the long term, the loss of market share to Airbus will exacerbate these losses, as the position of the European company in China is strengthening."

Sevostyanov also pointed out that China faces a problem in adjusting its strategy for the growth of air transport.

Sevostyanov concluded by saying, "Airbus cannot fully replace Boeing, especially if it needs to do so quickly. China's domestically produced COMAC C919 aircraft heavily relies on foreign components, so both sides will first need to reach an agreement."

Original article: https://www.toutiao.com/article/1829601903468544/

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