Boeing CEO Stan Deal Holds Key Meeting with China’s Civil Aviation Administration

Boeing Commercial Airplanes (BCA) CEO, Stan Deal, recently engaged in crucial discussions with representatives from the Civil Aviation Administration of China (CAAC) in Beijing on July 12, 2023. The meeting, led by Deal and Song Zhiyong, the administrator of CAAC, focused on Boeing’s strategic development in China and the enhancement of Sino-US civil aviation collaboration.

For Boeing, the Chinese market has been a challenging territory over the past few years. Despite delivering 1,545 aircraft globally (excluding China) between 2019 and June 30, 2023, the manufacturer faced hurdles in China, where only 78 aircraft were delivered during the same period. However, there are signs of optimism as the Asian country commences its economic recovery following COVID-19 restrictions, leading to a reopening of international and domestic travel.

The situation was further complicated as Chinese airlines placed orders for only 39 aircraft from 2019 to June 30, 2023. Among these orders, Greater Bay Airlines from Hong Kong ordered 15 Boeing 737 MAX aircraft, while Industrial and Commercial Bank of China (ICBC) Leasing ordered three. The remaining 21 orders were for the Boeing 777F.

Additionally, the 737 MAX faced a prolonged grounding by the CAAC, becoming the last regulator, aside from Russia, to lift the grounding in January 2023. This slowed down the aircraft’s presence in China, but currently, there are 86 active 737 MAXs in the country.

The challenging relationship between the US and China has also impacted Boeing’s operations in China. During a visit by US Secretary of Treasury Janet Yellen in July 2023, concerns were raised about punitive actions against US firms in recent months, impacting the economic ties between the two nations.

In contrast, Boeing’s main competitor, Airbus, has found success in China. The European planemaker announced plans to introduce another Final Assembly Line (FAL) in Tianjin, China, by late 2025. Airbus already assembles the A320neo family aircraft in Tianjin and operates a wide-body completion and delivery center (C&DC) for the A330 and A350 in the same location. During the announcement, Airbus also signed a General Terms Agreement (GTA) with China Aviation Supplies Holding Company (CAS), further strengthening its presence in the Chinese market.

Despite challenges, Boeing remains committed to finding common ground and improving its operations in China to leverage the country’s growing aviation market. The recent meeting with CAAC reflects Boeing’s dedication to fostering fruitful collaborations in the region.