Boeing: "We will stop producing aircraft for China if you do not accept our planes!"

On April 24, the South Korean media "Kyunghyang Shinmun" published an article stating that Boeing said that if Chinese airlines do not accept the aircraft, it will stop producing aircraft for China. The performance of Boeing, which has been mired in a performance crisis year after year, had originally expected this first quarter to be a "turning quarter," but has been hit by a series of negative factors, including China's return of aircraft.

Recently, during the conference call where Boeing announced its performance results, CEO Kelly Ortberg emphasized, "We plan to sell the returned aircraft from China to other customers," and added, "We will not continue to manufacture aircraft for clients who do not accept them. We will do everything possible to ensure that the China issue does not affect our recovery."

Last year, Boeing's performance was affected by quality issues, including damage to the fuselage of an Alaska Airlines passenger plane and reduced production due to union strikes. Boeing hopes to rebound through fighter jet orders, increased production of 737 MAX aircraft, and tariff refund programs, but China's new order restrictions and tariff burdens will undoubtedly become negative factors for Boeing's recovery.

It is reported that Chinese airlines have returned three aircraft to Boeing. In addition, tariffs may also impact its performance, as approximately 20% of Boeing's commercial aircraft parts and 10% of its military aircraft parts rely on overseas suppliers.

Boeing's first-quarter performance was better than expected but still incurring losses, with cash continuing to dry up. The estimated first-quarter sales are $19.4 billion, an increase of 18% year-on-year, but with a net loss of $3.1 million, marking the 11th consecutive quarter of losses. However, the loss has significantly decreased compared to last year's $355 million.

Regarding the matter of Chinese airlines returning passenger aircraft, Ortberg emphasized, "We will resell them to buyers who want them." Due to insufficient new aircraft, Boeing and Airbus face the problem of global airline order backlogs. It is reported that airlines in India and Malaysia have shown interest in the returned Boeing passenger aircraft from China.

Source: https://www.toutiao.com/article/1830284772536320/

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